36 Toronto Gold Juniors Sorted

Source:

For the past year or so, analysts at RBC Capital Markets have tracked more than three dozen Toronto-listed non-producing gold companies, in terms of adjusted market capitalisation (AMC) per ounce. The group average has hovered between $50-$75 an ounce, with the current average of $56 an ounce being at the low end of the range.

For the past year or so, analysts at RBC Capital Markets have tracked more than three dozen Toronto-listed non-producing gold companies, in terms of adjusted market capitalisation (AMC) per ounce. The group average has hovered between $50-$75 an ounce, with the current average of $56 an ounce being at the low end of the range.

The AMC method adjusts actual market capitalisation by adding long-term debt and deducting working capital; this is then divided by ounces in the ground. Measured and indicated ounces, the most confident, can be applied. The less confident, and wider categories of measured, indicated and inferred ounces, can also be applied...

The AMC/oz metric is seen as simply a starting point for the analysis of attractive early-staged investing, given that "some stocks trade at low multiples for good reasons". Instead, RBCCM's preferred strategy for investing in this group entails the search for opportunities where the analysts believe that a gold project, or projects, can either advance to development, and ultimately become a producing mine (known as a re-rating play), and/or where increasing resource bases will be rewarded in the share price (exploration plays).

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