The Three Cheapest Gold Mining Companies in North America - and Probably The World

On a per ounce basis. Golden opportunity or deathwish ...

Often, a company is cheap for a reason. Nobody believes the story. Management’s track record is poor, and it has lost the faith of the investor. The balance sheet looks bad - there is too much debt or some other liability, which will hamper any prospects for growth. The broader markets do not currently favour companies in this sector - you could be the best fax machine maker in world history, but if nobody’s buying fax machines what’s the point? (I suppose there is always the NHS - I think the NHS until recently was the world’s number one buyer of fax machines or some such stupidity).

So cheap doesn’t necessarily mean good. When something is cheap, it can always get cheaper…

Then again, with gold currently trading around $2,300/oz (maybe a bit lower it had a bad day yesterday), two of these companies below are trading at $4 per ounce in the ground. One is trading at $1/oz. There is a lot of value to be had. Buying the right asset on the cheap is often how fortunes are made.

After conversations with my broker and his analysts, I have identified what we believe are the three cheapest companies in North America, and probably the world, on a per ounce basis

Before we come to them, I just wanted to share is a quick note on Condor Gold (LSE:CNR/TSX:COG), which has had a great run and now hit the target I made for it in February, marking a tidy 75% profit. 

Condor Gold reaches target ahead of schedule. Now what?