The Globe and Mail attempts to identify companies that are well positioned
to withstand the volatility
surrounding gold prices, measured
by low levels of net debt
and strong relative valuation
metrics in its Wednesday, July 29, edition. The Globe's Ryan Gottschalk writes in the Number Cruncher column that with spot
values for gold recently trading at
about 58 per cent of
their five-year high, the question
now becomes which gold companies
will be able to withstand
this major headwind.
Mr. Gottschalk's screen focuses on North
American companies listed within
the GICS Gold subindustry
that have strong fundamental
and relative valuation ratios. He only considered companies with a
market capitalization of at least
$200-million (U.S.), a net debt-to-enterprise-value ratio of less
than 40 per cent, and an enterprise
value/EBITDA ratio no
greater than seven.
Mr. Gottschalk's gold stocks with low levels of net debt and strong relative valuations are Kirkland Lake Gold, Lake Shore Gold, Klondex Mines, Newmont Mining, New Gold, Kinross Gold, Eldorado Gold, Iamgold, Alacer Gold and Primero Mining.
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