Top 2 Risk/Reward Mid-Tier Gold Producers

Oct. 08, 2018 4:09 PM ETARNGF, TGCDF, AR:CA30 Comments
Don Durrett profile picture
Don Durrett
4.87K Followers

Summary

  • Two quality mid-tier gold producers with good management teams.
  • Both have excellent risk/reward profiles.
  • Both are highly leveraged for higher gold prices.

Stock Name

Symbol (US)

Category

Share Price (US)

FD Shares

FD Mkt Cap 5/25/18

Argonaut Gold

ARNGF

Mid-Tier Producer

$1.30

183M

$239M

Teranga Gold

TGCDF

Mid-Tier Producer

$3.02

113M

$341M

Above are two quality gold producers. I have selected them as the current best risk/reward gold producers. These two stocks should outperform the price of gold significantly - if it rises. In fact, I expect these stocks to double in value if gold reaches $1,500. These are the stocks that you want to own if you are looking for high returns - if gold prices start trending higher.

These stocks have high leverage versus the gold price, so they also have high risk. In fact, I would say that they are both currently underperforming. If gold prices drop, they will likely fall hard. If investors don't like them at $1,200 gold, then they surely won't like them at $1,150 or lower.

My investment philosophy is to find stocks that will perform at higher gold prices. I like to chase future cash flow at future gold prices. I focus on the difference between a company's current FD market cap and their projected future FD market cap. I will show you how I calculate that for each of these stocks.

Below is my analysis from the GSD website (www.goldstockdata.com)for each stock on the list. Some of these analyses are not recent and the date of the analysis is included.

Note: The link to each company's share price chart is their symbol in the list above. The link to the company's website is the company name in the analysis below.

Argonaut Gold (5/28/2018)

Argonaut Gold is a solid mid-tier producer. There is a lot to like about this company. Their production is forecasted to grow from 170,000 oz. in 2018 to approximately

This article was written by

Don Durrett profile picture
4.87K Followers
Author of How to Invest in Gold & Silver: A Complete Guide with a Focus on Mining Stocks. Expert on gold and silver mining stocks. Website: https://www.goldstockdata.com.Twitter: https://twitter.com/DonDurrettYoutube: https://t.co/TKA05E3Gsr?amp=1Instagram: https://www.instagram.com/dondurrett/Website: https://www.dondurrett.com

Disclosure: I am/we are long ARNGF, TGCDF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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