Small Cap Gold Mining Stocks on the London Stock Exchange – The Flavor of the Season

Small Cap Gold Mining Stocks on the London Stock Exchange – The Flavor of the Season

The current turmoil in the world economy has brought forward the importance of all-weather enduring assets like gold which investors may not only use to park and preserve their wealth but also as an investment avenue which at today’s date promises to give a return superior to many other types and classes of financial assets. Gold has for a long time been used as an instrument for hedging risk; be it inflation, deflation or currency devaluation, people have always turned to this asset in times of crisis. Gold, for thousands of years, has been used as a currency, and even when paper currencies came into being, their values were also for a long time pegged to gold before being replaced by other assets. Even today gold is one of the most liquid assets and is accepted in many places as payment in the extinguishment of a financial claim.

Given the above properties it is but natural that the demand for gold in the current season would be very high and prices would be skyrocketing. With the high demand for gold prices the fortunes of gold producers have also risen and there is now greater emphasis to increase the supply line. Seeing the current bullish market, many an explorer have started venturing into exploration of the yellow metal with an increased vigor. A number of new discoveries of gold mineralizations have been made in many parts of the world, which promise to increase the supply of the metal in the world significantly, and the stocks of these companies are the new flavor of the season, promising investors returns that are too difficult to ignore. Below we discuss five of the most prominent small cap, yet promising gold companies listed on the London Stock Exchange which have been trending at present and also in the recent past.

  1. Petropavlovsk Plc - Petropavlovsk Plc (LON: POG) is a United Kingdom registered Russian gold mining company with operations in the Far East of Russia, where its production plants and mining resources are also located and is one of the largest gold mining companies in Russia. The company has a registered office in London in United Kingdom which provides administrative support to all of its different units located elsewhere. However, the key operational area of the company happens to be the Amur region in the Far East of Russia. The company is amongst the most experienced, and the most established vertically integrated gold producers in the world and focuses on exploration, mining and production of a stable output of low-cost gold. The Amur region of Russia benefits from a strong mining tradition, access to hydroelectric power and a well-developed industrial infrastructure.

The shares of the company are listed for trading on the London Stock Exchange since 22 April 2009, in the main market segment. Here the shares trade with the ticker name POG.

The company for the half-year period ending on 30 June 2019 reported a revenue of US $305 million, which is a growth of 13 per cent over the revenue of the corresponding period in 2018 when the company had reported a revenue of US $270 million. The company for the period reported a profit of US $14 million whereas in the corresponding period in 2018 the company had reported a loss of US $40 million.

  1. Pan African Resources Plc - Pan African Resources Plc (LON: PAF) is a South African Gold exploration, mining and production company domiciled in Johannesburg. The company has a production capacity of 170,000 pounds of gold per annum, supplying out of two mines namely Barberton mines and the Evander Gold mine, having dedicated processing plants for each of them.

The shares of the company are listed for trading on the London Stock Exchange since 31 July 2017, in the Alternative Investment market segment (AIM). Here the shares trade with the ticker name PAF.

The company for the year ending on 30 June 2019 reported a revenue of USD $217.4 million which is a growth of 49.1 per cent over the previous year revenue of USD $145.8 million. The profit after taxation for the period reported by the company for the period stood at USD $38.0 million, whereas in 2018 the company has incurred a loss after taxation of USD $122.8 million.

  1. Trans-Siberian Gold Plc - Trans-Siberian Gold Plc (LON: TSG) is a Cambridge, United Kingdom-headquartered holding company with an interest in exploration, mining and development of gold resources, having all its exploration, mining and production interests in Russia. The company fully owns the Asacha Gold Mine, which is located in Kamchatka in the Far East of Russia and is an established gold mine producing high-grade mineralised resources of the metal from its underground operations. The company focuses on low cost, high-grade mining operations with stable gold production and generally sells the gold produced to Russian commercial banks.

The shares of the company are listed for trading on the London Stock Exchange since 25 November 2003, in the Alternative Investment market segment (AIM). Here the shares trade with the ticker name TSG.

The company for the half-year ending on 30 June 2019 reported a revenue of $30 million, which is a growth of 8.7 per cent year on year. Whereas the corresponding period previous year revenue of the company was $27.6 million. The profit before tax reported by the company for the six-month period stood at $8.5 million which is a growth of 169.7% year on year, whereas for the first half of 2018 the company had reported a profit before tax of $3.2 million.

  1. Hummingbird Resources Plc - Hummingbird Resources Plc (LON: HUM) is the United Kingdom based mining and exploration company with a focus on gold mining. The company has its main operations located in the countries of Liberia and Mali. The company’s exploration interest in Mali is known by the name Yanfolila gold project, and the exploration interest in Liberia is known by the name Dugbe gold project. Both of the company’s projects are already de-risked and hold a total inventory of 6.4 million ounces of gold.

The shares of the company are listed for trading on the London Stock Exchange since 10 December 2010, in the Alternative Investment market segment (AIM). Here the shares trade with the ticker name HUM.

The company for the six-month ending period 30 June 2019 reported a revenue of US$67.1 million in comparison to a revenue of US$66.6 million reported for the first half of 2018. The EBITDA reported by the company for the period was US$9.9 million and the pre-tax loss reported by the company for the period was US$5.8 million.

  1. Greatland Gold Plc - Greatland Gold Plc (LON: GGP) is a United Kingdom registered London-headquartered, mining, mineral exploration and development company, focused on gold mining and production in the Tasmania region and the Western regions of Australia. The company is the owner of a portfolio of highly promising projects in the highly prospective geological areas of Australia with known reserves and deposits of gold and nickel mineralizations. The company has been working on five minerals projects, which include the Warrentinna project, the Firetower project, the Bromus project, the Ernest Giles project, the Panorama Project and the Havieron project, and is also researching and reviewing projects globally, with an aim to develop projects in under-explored parts of known mineralized deposits that have not been subject to significant exploration in the past. The operations of the group are organized in two geographic segments, one in the United Kingdom and the other one in Australia.

The shares of the company are listed for trading on the London Stock Exchange since 03 July 2006, in the Alternative Investment market segment (AIM). Here the shares trade with the ticker name GGP.

The company for the year ended 30 June 2019 reported an operating loss of £3,254,002 whereas for the year ending on 30 June 2018 it had reported an operating loss of £1,840,436. The loss of the company for the year stood at £3,264,307 whereas for the previous year it had reported a loss of £ 1,836,545.

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