Mergers & acquisitions are abundant. I bought Zijin Mining (2699 HK), China's largest gold producer at HKD5.50. It is now HKD7.60. I believe the stock is worth at least HKD25 because its reserves are not marked to market.
Caution: I don't own any of the stocks below.
Top 10 Most Undervalued Gold Stocks
The following is a list of the most undervalued gold stocks, when comparing the current price against the average analyst target price (used as a proxy for fair value).
Yes, there are many limitations to this approach, and we suspect there are many falling knives here. But the goal here is to give you a starting point for your own analysis.
Target price data sourced from Finviz. Full analysis below.
https://www.kapitall.com/framework/#?tool=CompanyListSnapshot¶ms=RBY,KGN,GBG,ANV,NXG,FRG,IAG,AUY,JAG,GG&options=B64ENCeyJhY3Rpb24iOiJzdG9ja19pbmZvIiwic29ydCI6Im5hbWUiLCJzb3J0QXNjIjoiMSJ9
The list has been sorted by discount to analyst target price.
1. Rubicon Minerals Corporation (RBY): Market cap of $794M. Wednesday's closing price at $3.54 vs. target price of $5.59 (discount of -36.67%). Short Float at 0.36%, which implies a short ratio of 0.84 days. The stock has lost -17.15% over the last year.
2. Keegan Resources Inc. (KGN): Market cap of $337M. Wednesday's closing price at $7.14 vs. target price of $10.98 (discount of -34.97%). Short Float at 0.23%, which implies a short ratio of 1.29 days. The stock has gained 50.41% over the last year.
3. Great Basin Gold Ltd. (GBG): Market cap of $905M. Wednesday's closing price at $2.49 vs. target price of $3.67 (discount of -32.15%). Short Float at 5.69%, which implies a short ratio of 9.79 days. The stock has gained 58.54% over the last year.
4. Allied Nevada Gold Corp. (ANV): Market cap of $2.14B. Wednesday's closing price at $22.51 vs. target price of $31.41 (discount of -28.33%). Short Float at 7.22%, which implies a short ratio of 6.33 days. The stock has gained 139.96% over the last year.
5. Northgate Minerals Corp. (NXG): Market cap of $826M. Wednesday's closing price at $2.76 vs. target price of $3.83 (discount of -27.94%). Short Float at 0.43%, which implies a short ratio of 0.5 days. The stock has gained 1.43% over the last year.
6. Fronteer Gold Inc (FRG): Market cap of $872M. Wednesday's closing price at $7.25 vs. target price of $9.61 (discount of -24.56%). Short Float at 2.84%, which implies a short ratio of 3.68 days. The stock has gained 58.55% over the last year.
7. IAMGOLD Corp. (IAG): Market cap of $6.38B. Wednesday's closing price at $16.97 vs. target price of $22.41 (discount of -24.27%). Short Float at 0.64%, which implies a short ratio of 0.73 days. The stock has gained 22.64% over the last year.
8. Yamana Gold, Inc. (AUY): Market cap of $8.05B. Wednesday's closing price at $10.6 vs. target price of $13.83 (discount of -23.36%). Short Float at 0.56%, which implies a short ratio of 0.53 days. The stock has lost -9.42% over the last year.
9. Jaguar Mining Inc. (JAG): Market cap of $562M. Wednesday's closing price at $6.38 vs. target price of $8.26 (discount of -22.76%). Short Float at 7.39%, which implies a short ratio of 4.72 days. The stock has lost -29.42% over the last year.
10. Goldcorp Inc. (GG): Market cap of $31.24B. Wednesday's closing price at $41.8 vs. target price of $54.01 (discount of -22.61%). Short Float at 1.36%, which implies a short ratio of 1.78 days. The stock has gained 2.66% over the last year.
Disclosure: No positions
