With the gold price down to $1170 per ounce this morning with positive job numbers out of the United States. I decided this morning to take a quick look at 5 gold producers who are making money at the current gold price.
For my quick analysis I looked at the Q1 results of each company mentioned briefly. I believe that looking at cash cost is a useless metric. The all in cash cost is better but still not perfect.
For purposes of today’s blog post I went right to the bottom line. Did the company make a net profit or not?
Here is my list.
Klondex Gold – (KDX.TO) – Klondex is a small junior high grade producer in Nevada. Q1 net income came in at $10.1 million on an average sale price of $1212 per ounce. I expect Klondex to be in the green in the second quarter.
Lake Shore Gold – (LSG.TO) – Lake Shore Gold is a junior producer in Ontario. Operations have turned around considerably in the last couple years and are generating free cash flow. LSG has also benefited from the weak Canadian dollar. First quarter net earnings came in at $12.1 million.
Claude Resources – (CRJ.TO) – Claude is a 4 bagger since October going from 20 cents to nearly 80 cents. Another turnaround story like Lake Shore Gold. Claude produced 21,657 ounces in the first quarter earning $5.2 million.
Kirkland Lake Gold – (KGI.TO) – Kirkland Lake has the luxury of producing some of the highest grade ore in the world at 14-20 grams per tonne in Ontario. In the first quarter Kirkland Lake earned $4.24 million in Q3 (has a different fiscal year end).
Teranga Gold – (TGZ.TO) – Teranga is another turnaround story having operational success after Franco Nevada made an investment for a royalty. Teranga is looking to grow organically and lower cash costs further in Senegal. Teranga Gold earned $15.27 million in Q1 and is generating solid free cash flow.
Who did I miss? Discuss in CEO Live
This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.