Anyone who has a finger on the pulse of the global economic situation has probably heard about inflation lately, especially with the U.S. Federal Reserve Chairman Jerome Powell recently discussing the Fed’s view about how much is tolerable and how long it will last.
As concerns regarding inflation have risen, so too has chatter about hedges. This makes now a particularly unique time for precious metals and the companies that mine them.
Traditionally, assets like gold, silver and platinum have long been considered hedges against inflation. So, while consumers may be looking at higher costs for goods, investors are looking at so-called “safe haven” assets. One of the challenges of investing in miners, however, is that it can be difficult to figure out how to choose amongst a large number of possibilities.
To help narrow down the field, we took a look at the OTCQX Best 50 list as a guide—the OTCQX Best 50 is a ranking of top performing companies on the OTCQX Best Market based on 2020’s total return and average daily dollar volume growth—here are four companies who recently reported earnings.
Calibre Mining Corp. (OTCQX: CXBMF)
Calibre is a multi-asset gold producing company with 2,700,000 tonnes of annual installed processing capacity. The company showed a 33% year-over-year increase in revenue to the tune of $82 million in the last year, announced in Q3 2021. Additionally, it made strides in net income and operating income, with year-over-year 31.69% and 39.55% increases respectively from Q3 2021.
K92 Mining Inc (OTCQX: KNTNF)
K92 is a mining company with a significant operation at the Kainantu Gold Mine site in the Eastern Highlands province of Papua New Guinea with gold, silver, and copper production opportunities. KNTNF has been on a significant upward trend over the last two years, at times being priced as low as $1.27 per share in June of 2019. The security has seen continued growth and now is priced roughly at a $5-7 range. This previous quarter, they announced that they had experienced multiple significant events: “record quarterly revenue of US$29.5 million, increasing 7% from Q1 2020”, sold 21,879 oz of gold, 394,635 lbs of copper and 7,463 oz of silver, had fully paid off a $5 million loan, and had an increased cash balance of $66 million.
Discovery Silver Corp. (OTCQX: DSVSF)
Discovery Silver is a mining company building a large-scale, high-margin silver asset in Mexico “with the optionality to expand into one of the largest primary silver mines in the world”. With a ticker that was $0.68 a year ago, to now gains of 150% and a price of $1.70, DSVSF has decreased from a recent high of $2.18. While Discovery reported a decline in net income of 8.7% this most recent quarter, their massive opportunity in silver may come to fruition in perfect time for inflationary concerns.
GoGold Resources, Inc. (OTCQX: GLGDF)
GoGold Resources is a Canadian-based silver and gold producer with multiple large-scale projects located in Mexico. This year, GoGold announced that their Parral site had “Generated $6.3M US of Free Cash Flow for Quarter Ending March 31, 2021” by producing and selling a significant amount of silver. GLGDF has gone on a massive 272% run in the past year, moving from $0.71 a year ago, to a price of $2.65 now. Their most recent earnings report included an EBITDA of $9.1M CAD, and an EPS of 0.03.
To learn more about other mining, metals, and other companies that trade on the OTCQX Market visit: https://www.otcmarkets.com
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