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This article is an expansion of an executive summary of the original research report (20,060 words) by Chris Thompson, Director of Equity Research at eResearch.com.
Figure 1: Appalachian Gold Belt (Highlighted in Light Red)
- 3 of the 38 companies identified (see the full list here) have made recent high-grade (“bonanza-grade”) discoveries, namely, New Found Gold (-19.9% YTD) and Sokoman (-8.6%) in Newfoundland, Canada, and Aston Bay (-50.0% YTD) in Virginia, USA.
- 4 of the 38 companies are currently mining gold, namely, Signal Gold (formerly Anaconda Mining) and Rambler Metals & Mining in Newfoundland, St. Barbara in Nova Scotia (and in Australia and Papua New Guinea), and OceanaGold in South Carolina and Nova Scotia (and in Phillippines and New Zealand).
- The remaining 31 companies are in various exploration and development phases of operation.
Below are the stock performances of the 4 producing companies YTD (as of May 27th), in descending order:
- OceanaGold (TSX:OGC): +35.0%
- Operates a gold-copper mine on Luzon Island in the Philippines; 2 mines in New Zealand; the Haile gold mine located in South Carolina, U.S. and the Atlantic Gold mining operations in Nova Scotia, Canada.
- Has a market cap of C$1.9B (go here to convert into another currency).
- Its latest quarterly financials here, reported
- a US$78.6 million in net profit (a 391% increase from Q1 2021 and
- a 61% increase in gold production year over year to 134,035 ounces.
- Company and stock overview here.
- St. Barbara (AX:SBM): -18.8%
- Operations consist of the open Touquoy pit mine in Nova Scotia, Canada; the Gwalia underground mine in Western Australia and the Simberi gold mine in New Ireland province, Papua New Guinea.
- Has a market cap of A$958M (go here to convert into another currency).
- Trades on the Australian Stock Exchange.
- Its latest quarterly financial statement here reported
- a 35% decline in gold production due to severe weather events in January and February,
- the cessation of mining of the Touquoy pit remains on schedule for the first half of FY23,
- a deferral of its planned drilling programs as part of a revised consultation process with the First Nations groups in Nova Scotia but that
- permitting efforts are progressing satisfactorily for its Beaver Dam and Fifteen Mile Stream projects.
- Company and stock overview here.
- Signal Gold (TSX:SGNL): -25.4%
- Formerly known as Anaconda Mining Inc.
- Projects include the Point Rousse Project in the Baie Verte Mining District,
Newfoundland; the Goldboro Gold project near Halifax, Nova Scotia; and the Great
Northern project is located near the community of Jackson’s Arm, Newfoundland. - Has a market cap of C$100M (go here to convert into another currency).
- Its latest quarterly financials here reported
- an 11% increase in gold production compared to Q1 2021 and
- sold 3,491 ounces of gold in Q1 2022, generating metal revenue of $8.0 million.
- Company and stock overview here.
- Rambler Metals & Mining (LSE:RMM): -38.9%
- Its principal project is the Ming copper-gold mine located in the Baie Verte Peninsula of Newfoundland and Labrador, Canada.
- Has a market cap of GBp$37M (go here to convert into another currency).
- Trades on the London Stock Exchange.
- Its FY2021 annual financial statement here reported
- revenue of US$28,176 and
- a net loss of US$(2,373)M.
- Company and stock overview here.
eResearch has published a 79-page industry report entitled “Atlantic Gold Industry Report – The Ultimate Guide to Gold Mining Companies in the Appalachian Gold Belt” which can be accessed here.