Gold underperformed in 2021 as it is one of the asset classes that delivered negative yearly returns. Will 2022 be the yellow metal’s year? If so, here are some junior gold producers to buy in early 2022: Resolute Mining, Argonaut Gold, and Calibre Mining.
In a year dominated by rising inflation both in developed and emerging markets, gold underperformed. After reaching a new all-time high in 2020, trading above $2,000 for the first time, it corrected for the entire 2021.
Naturally, gold investors are perplexed because gold is typically purchased as a hedge against inflation. It wasn’t the case this year, and the yellow metal’s underperformance affected gold miners’ stock market performance.
Gold miners are typically grouped into three categories: senior, mid-tier, and junior producers. Senior producers are well-known to the general public, but junior ones not so. Here are three junior gold producers stocks that might benefit from the potential bullish run in the price of gold: Resolute Mining, Argonaut Gold, and Calibre Mining.
Resolute Mining is an Australian gold mining and production company. Based in Perth, it owns mines in several African countries and the life of its mine gold production stretches well beyond 2032.
The company operates with a gross profit margin of 31.93%, higher than the sector median by 4.67% and it has an enterprise value close to $500 million.
Argonaut Gold is an American gold mining company from Reno, Nevada. It operates several gold mines in the United States, Mexico, and Canada, and its revenue growth YoY is close to 50%, higher than the sector median by 128.43%. EBITDA growth over the past twelve months exceeds the sector median by close to 500% and it stands as one of the favorites to benefit from a gold price recovery.
Calibre Mining is a Canadian gold ming and exploration company from Vancouver. It develops gold properties in Nicaragua and its current market capitalization is $345 million with an enterprise value of $273.76 million.