If you’ve noticed that gold mining stocks haven’t been tracking gold’s recent ascension to all-time highs, you aren’t alone.
The metal has added 62 per cent since 2018 to US$2,410 per ounce, as of 1:42 pm ET Friday, and has grown by almost 5x since the Global Financial Crisis, propelled by widespread investor fear about interest rates, fiat currency devaluation, and rising geopolitical tensions such as the Israel-Iran Conflict.
Studies from Sprott, Mining.com, Kitco and The Globe and Mail all document underperformance among gold mining stocks compared with their target commodity, identifying a high-potential opportunity to own quality operations trading at irrationally low valuations given their track records.
Here are three names to consider for due diligence as you ease into the weekend:
Goldflare Exploration
Goldflare Exploration, established in 2003, is a Quebec-based mineral exploration company with a diversified portfolio of properties, each of which benefits from favourable geological settings near comprehensive infrastructure.
The company owns land along a broad corridor with evidence of significant mineralization, including Aiguebelle-Goldfields, Syenite Condor, Ranger (all 100 per cent owned), and Destorbelle (50 per cent Goldflare, 50 per cent Axe Exploration). An additional project, Duplessis-Agar, shows a high potential for gold.
David Corbeil-Heneault, Goldflare’s chief financial officer, joined Stockhouse’s Coreena Robertson earlier this week to discuss the delineation of new targets on the company’s Goldfields property. Watch the interview here.
Results at Goldfields in 2023 over a 100-metre strike length confirm the presence of gold, yielding a high grade of 113 g/t over 1 m in hole AIG-23-13, and 1.3 g/t gold over 22.8 m, including 5.8 g/t gold over 2.4 m, in hole AIG-23-26.
Goldflare stock (TSXV:GOFL) last traded at C$0.025 per share. The stock has given back 58.33 per cent year-over-year, and 16.67 per cent since 2018.
Xali Gold
Our next mining stock pick is Xali Gold, which owns and operates gold and silver exploration projects in Peru and Mexico.
Its flagship El Oro project in Mexico boasts 8 million ounces of past gold production and houses multiple veins with excellent drill-demonstrated discovery potential. The company is currently evaluating 31 targets to expand mineralization.
The value proposition at El Oro is sweetened by:
- The recently sold El Oro tailings operation with an inferred resource of 119,900 ounces of gold and 3,061,200 ounces of silver poised to produce short-term cash flow (slide 13)
- The SDA flotation plant and precious metals leach circuit (slide 15), which has a decade-long operating history at 100 tonnes per day and is already cash flowing at US$150,000 per month until September 2024 under a rent-to-purchase agreement
- The Tres Marias property in Peru, which houses numerous vein systems and alteration zones, and has yielded rock chip samples as high as 0.4 m at 503 g/t silver
Joey Freeze, Xali Gold’s chief executive officer, sat down with Stockhouse’s Ryan Dhillon earlier this week to discuss the sale of the El Oro tailings operation. Watch it here.
Xali Gold stock (TSXV:XGC) last traded at C$0.06 per share. The stock is flat year-over-year and has added 100 per cent since 2018, with further upside to be reaped should the company identify an economically extractable recovery.
GoGold Resources
GoGold is a Canadian silver and gold producer operating, developing, exploring and acquiring high-quality projects in Mexico.
The gold stock’s flagship Parral Tailings mine in the state of Chihuahua has produced between 300,000 to more than 600,000 ounces of silver equivalent since 2018, and it features a proven and probable mineral reserve of 171,000 ounces of gold and 16.57 million ounces of silver.
Its Los Ricos South and Los Ricos North exploration projects in the state of Jalisco feature 2023 preliminary economic assessments detailing net present values of US$458 million (1.25 million ounces of gold equivalent measured and indicated) and US$413 million (1.1 million ounces of gold equivalent measured and indicated), respectively.
Bradley Langille, GoGold Resources’ president and chief executive officer, joined Stockhouse’s Ryan Dhillon earlier this week to discuss production figures for the quarter ending March 31. The company posted production of 375,745 silver equivalent ounces, including 138,657 silver ounces, 2,184 gold ounces, 93 tonnes of copper and 92 tonnes of zinc. Watch the interview here.
GoGold Resources stock (TSX:GGD) last traded at C$1.35 per share. The stock is down by 28.95 per cent year-over-year, but has gained 213.95 per cent since 2018, supported by consistent production of in-demand commodities, US$50 million in profit since 2019, and a strong cash balance of US$95 million as of December 2023 to complete a definitive feasibility study on Los Ricos South, amid other value-accretive goals planned for 2024.
Join the discussion: Find out what everybody’s saying about these gold mining stocks on the Goldflare Exploration, Xali Gold and GoGold Resources Bullboards, and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Goldflare Resources, Xali Gold and GoGold Resources, please see full disclaimer here.