Thursday , 7 December 2023

These 4 Gold Juniors Are In Great Financial Shape – Clean Balance Sheets & No Debt

Investing in companies with strong balance sheets is sound investment policy. They carry far less riskgold-nugget because defaulting on any obligations is out of the question for them. Furthermore, the less debt a company has, the more room they have to raise debt in the future, which can be beneficial to current shareholders as it is a non-dilutive financing option.

Two common ratios used to analyze the balance sheet are the current ratio and the debt to equity ratio. The current ratio is an indicator of liquidity, and shows how many times a company’s current assets cover their current liabilities, whereas the debt to equity ratio is a leverage ratio that indicated how much debt a company uses to finance its assets. The 4 Canadian gold juniors on our list have current ratios over 2 and carry no debt.

1. IDM Mining Ltd. (TSXV: IDM)

IDM Mining…is a Canada-based exploration-stage company engaged in the business of acquiring, exploring and developing natural resource properties in British Columbia and Yukon…

  • Market Cap: $50,273,838
  • Current Ratio: 2.8x
  • Debt to Equity 0.0%

2. TriStar Gold Inc. (TSXV: TSG)

TriStar Gold is an exploration-stage junior mining company with a business focus on the acquisition, exploration and development of precious metal prospects in the Americas, including its focus on advancing the exploration of the Castelo de Sonhos project in the Tapajos Gold District of Brazil’s northerly Para State…

  • Market Cap: $59,075,424
  • Current Ratio: 9.6x
  • Debt to Equity: 0.0%

3. Dalradian Resources Inc. (TSX: DNA)

Dalradian Resources Inc. is a Canada-based gold development and exploration company engaged in the acquisition, exploration and evaluation of mineral properties in Northern Ireland…

  • Market Cap: $406,683,783
  • Current Ratio: 7.0x
  • Debt to Equity: 0.0%

4. NewCastle Gold Ltd. (TSX: NCA)

NewCastle Gold…is an exploration gold company which, through its subsidiaries, including Castle Mountain Venture, focuses on the exploration and development of gold deposits in…San Bernardino County, California, approximately 70 miles south of Las Vegas, Nevada…

  • Market Cap: $182,439,864
  • Current Ratio: 3.2x
  • Debt to Equity: 0.0%

Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.

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