Six hot junior gold stocks to explore

Summary

  • Golden Minerals Company’s revenue was up from US$1.2 million to US$1.8 million YoY in Q1, 2021.
  • Galiano Gold Inc. produced 59,999 ounces of gold in Q1 of 2021.
  • DRDGOLD produced 1382 kg gold in Q1, 2021, ended on March 31, which is 6% lower YoY. It sold 1363 kg gold that is 8% down as compared to the previous year.

Junior gold stocks are deemed companies that are not listed on bigger mining exchanges like Philadelphia Gold and Silver Sector Index (XAU) or Amex Gold Bugs Index (HUI).

These companies are always on the lookout for new sites that have gold deposits. They can be venture capital firms that collect funds from investors for mining exploration. Experts also rank them based on production. Operations of junior gold miners are generally risky.

Since they have limited capital to invest, the identified sites must produce gold or else they stand to lose their money or run into bankruptcy. Their profits also depend on current gold prices.

If the prices go down, their operations become unfeasible.

Here are five hot junior gold stocks to explore this year.

DRDGOLD Limited (NYSE: DRD)

DRDGOLD is a South African gold mining company listed on the NYSE under the ticker name DRD.

Its stock traded at US$10.84 at 12.02 pm ET on June 18, down 1.09% from the previous close. Its stock price decreased by 16% YTD. Its market cap is US$920 million.

It produced 1382 kg gold in Q1, 2021, ended on March 31, which is 6% lower YoY. It sold 1363 kg gold that is 8% down as compared to the previous year.

Cash and cash equivalents decreased by R3.7 million to R2,165.7 million after the interim dividend of R341.8 million was paid for the six months.

Also read: 3 Gold Stocks To Explore As Economic Activities Gain Pace

Source: Pixabay.

Golden Minerals Company (NYSE: AUMN)

AUMN produces gold and silver from its Rodeo mine. It is the process of acquiring a new mine in Mexico. It also plans to acquire advanced mining properties in Nevada, and Argentina.

Its stock traded at US$0.67 at 12.17 pm ET on June 18, down 1.69% over the previous close. Its stock price decreased by 19.2% YTD. Its market cap is US$108 million.


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Its total revenue was US$1.8 million in Q1, 2021 ended on March 31 as compared to US$1.2 million of the previous year. It sold gold worth US$1.5 million. Net operating margin was US$0.2 million in Q1, 2021, as compared to US$0.6 million in the previous year.

It has US$8 million in cash and cash equivalent balance in this quarter as compared to last year’s US$9.6 million. Net loss was US$3.2 million or US$0.02 per share in Q1, 2021, as compared to US$3.3 million or US$0.03 per share.

Galiano Gold Inc (NYSE: GAU)

GAU operates and manages Asanko Gold Mine in Ghana, West Africa. It's jointly owned with Gold Fields Ltd. It adheres to environmental standards, social responsibility, and the health and safety of its employees and nearby communities.

Its stock traded at US$1.135 at 12.30 pm ET on June 18, down 1.30% over the previous close. Its stock price decreased by 10.62% YTD. Its market capitalization is US$253 million.

Its gold production was 59,999 ounces in Q1, 2021, ended on March 31. It reported gold revenue of US$ 110.6 million, and net income was US$ 29.7 million, adjusted EBITDA was US$39.2. Cash flow from operating services was US$35.4 million, and free cash flow was US$ 20.5 million.

Also read: 3 NYSE-Listed Gold Stocks to Watch in 2021

Source: Pixabay.

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Seabridge Gold, Inc. (NYSE: SA)

It is engaged in the acquisition and exploration of gold properties in North America.

Its stock traded at US$17.93 at 12.55 pm ET on June 18, down 1.10% over the previous close. Its market capitalization is US$1.3 billion.

The company recorded a net loss of US$4.3 million or US$0.06 per share in Q1, 2021, which ended on March 31. It was US$3.2 million or US$0.05 per share in Q1 of the previous year. It invested US$7.1 million in mining as compared to last year's US$4.5 million.


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Hecla Mining Company (NYSE: HL)

It owns many exploration properties and pre-development projects in gold and silver areas in North America.  Its stock traded at US$7.81 at 1.09 pm ET on June 18, down 2.07% from the previous close. Its stock price increased by 14.62% YTD. Its market capitalization is US$4.1 billion.

Its total sales were US$210.9 million in Q1, 2021, ended on March 31, highest sales in its 130-year history, or up 34% YoY. Gross profit was US$64.8 million, an increase of US$53.4 million YoY. Operating activities provided cash of US$37.9 million, and cash flow was US$16.5 million.


Gold Resource Corporation (NYSE: GORO)

It is a gold and silver exploration company with operations in Mexico. Its stock traded at US$2.575 at 1.24 pm ET on June 18, down 1.72% over the previous closing price. Its stock price increased by 22% YTD. Its market capitalization is US$192 million.

It reported a net income of US$2.5 million in Q1, 2021, which ended on March 31. Its revenue was US$27.3 million or US$0.03 per share. Cash from operating activities was US$6.8 million.


Also read: Five Gold & Silver Stocks To Watch In June


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