In a tough gold environment, Industrial Alliance Securities analyst Killian Charles has identified a list of companies that could be takeover targets, even if prices were to fall from here.
They are companies with projects that “demonstrate low cash cost, low political environmental risk, simple metallurgy and strong economic returns under various scenarios.”
Seven of the nine are rated speculative buys, including
Dalradian Resources Inc. (
TSX: T.DNA,
Stock Forum),
Golden Queen Mining Company Ltd. (
TSX: T.GQM,
Stock Forum),
Guyana Goldfields Inc. (
TSX: T.GUY,
Stock Forum),
Lydian International Ltd. (
TSX: T.LYD,
Stock Forum),
Midas Gold Corp. (
TSX: T.MAX,
Stock Forum) and
PMI Gold Corp. (
TSX: T.PMV,
Stock Forum).
Of the remainder,
Sulliden Gold Corp. Ltd. (
TSX: T.SUE,
Stock Forum) is rated a hold, and
Torex Gold Resources Inc. (
TSX: T.TXG,
Stock Forum) is a buy.
“We believe these companies are excellent acquisition targets or could be financed to production,’’ he wrote in a research report.
“They are well-funded with enough cash to maintain 6-12 months of work or to start construction.’’