GoldMinerPulse: TSX/TSXv Gold Mining and Silver Mining Companies

Last Updated With Closing Market Prices and Document Filings from: 18 December 2014 (as available at TSX closing time).


Seabridge Gold    

Visual Correlations

Use the form below to visually inspect the correlation between the closing market prices of TSX/TSXv gold/silver equities and spot market prices for gold and/or silver and/or copper.

TSX/TSXv Gold/Silver Stocks Correlation With Spot Market Metal Prices
Select TSX/TSXv Gold/Silver Stock Groupings For Review

Index: NYSE Arca Gold Bugs Index (HUI)

Producers in ETFs:  GDX   GDXJ   SGDM   SILJ   ZJG  

Developers/Explorers in ETFs:  GDXJ   SGDM   SILJ   ZJG  

Show Group Average

Add Spot Market Close Time Series

   Visual Correlation Chart Setup

Feedback from one of the 1st users (beta 001):

To quote the cop in Superbad, that metric is ''superbadass!''. And fun.

Since we come to the junior producer field looking for correlation, this is definately right up a stock pickers alley. Definately a home run. ...

Very nice.

Returns From Gold Equity ETFs vs Gold/Silver Bullion vs Stock Picking The TSX Producers

The average returns from investments in one of three gold equity ETFs versus returns from purchases of gold or silver bullion versus the return from stock picking strategies are compared below:

Average Returns: 18 December 2014
• average return assumes buy and hold on
1, 3, 7, 11, 17, 23, 31 & 41 prior TSX trading days.
group average % return
Oracle: Best 20 13.0
ETF: ZJG 1.3
Stock Picks: MVG 0.6
Physical: Gold -0.1
ETF: GDX -0.2
Stock Picks: S1 -1.6
Physical: Silver -2.5
Stock Picks: S3 -3.1
ETF: GDXJ -3.4
Stock Picks: S2 -6.9
Oracle: Worst 20 -19.4

Stock Picks: MVG (Max Value Group), Stock Picks: S1, Stock Picks: S2 and Stock Picks: S3 are rule based selection strategies for picking TSX/TSXv gold/silver producers. The design objective for each of the Stock Picks groups is to generate better returns than the gold equity ETFs when the price of gold is rising while providing returns roughly on par with (or only slightly worst) in a flat or falling gold market.

The MVG membership list, and related rankings of the TSX/TSXv gold and silver producers used to compute the MVG, can be computed using the algorithm described within or alternatively the MGV list and related rankings can also be purchased pre-computed from GoldMinerPulse on a daily, monthly or quarterly basis (see Contact to learn more).

The Stock Picks: S1, Stock Picks: S2 and Stock Picks: S3 Stock Picks are alternate stock picking strategies under current investigation - the S1, S2 and S3 strategies can be easily implemented for independent back testing. Complete details, including access to more back testing results, are available on a subscription basis.

The Oracle: Best 20 is an upper bound on the possible returns from a stock picking strategy, but since the Oracle stock picking strategies relies on a look ahead cheat (i.e. seeing the closing prices on the 2014-12-18 when making the original buy decisions), it is not implementable. The Oracle: Best 20 does however provide an upper bound benchmark against which to test stock picking strategies -- the gap between the MVG and ETF returns versus the Oracle: Best 20 suggests a better stock picking strategy potentially remains to be discovered.

The data points used to compute average return were:  

Percentage return for each investment choice assuming:
• buy at the close on the buy dates listed below
• sell at the close on 18 December 2014.
group / buy date 22 Oct.5 Nov.17 Nov.25 Nov.3 Dec.9 Dec.15 Dec.17 Dec.
 
Oracle: Best 20 7.0 35.3 11.5 2.3 10.1 5.5 19.6 13.1
ETF: ZJG -6.5 21.8 -2.0 -6.7 -4.4 -4.6 7.7 5.4
Stock Picks: MVG -9.3 19.2 1.0 -10.1 -3.4 -5.5 7.4 5.8
Physical: Gold -3.5 4.9 1.0 -0.2 -1.0 -2.7 0.4 0.7
ETF: GDX -8.2 13.1 -3.2 -8.0 -2.5 -5.1 8.2 4.3
Stock Picks: S1 -12.9 16.3 -5.5 -10.9 -6.5 -7.0 8.0 5.6
Physical: Silver -7.2 4.1 -1.5 -4.6 -3.1 -6.7 -1.5 0.9
Stock Picks: S3 -17.3 17.1 -9.4 -14.8 -10.7 -6.1 10.1 6.3
ETF: GDXJ -20.3 9.2 -9.9 -15.4 -5.8 -5.0 12.4 7.8
Stock Picks: S2 -26.4 6.1 -14.6 -20.4 -12.1 -7.1 12.1 7.5
Oracle: Worst 20 -40.2 -18.0 -24.9 -29.2 -20.5 -16.4 -3.2 -3.0

The percentage returns, which assume a purchase at the close of each buy date and a sale at the close of the 2014-12-18, are highligthed as follows:

Group with the best return for the buy date.
Group with the 2nd best return for the buy date.

The table rows are sorted by the arithmetic average of the percentage returns realized for each of the buy dates. The table rows are ordered from highest average percentage return to the lowest.

The percentage return tables are updated after the close of each TSX trading day. Group member is always computed prior to the start of each trading day. On a day to day basis, changes in the Oracle groups are common. Membership in any of the Stock Picks groups may also vary over time but by design the MVG group changes typically occur on a time frame matching the flow of new financial and technical reports from the producers (typically quarterly). The other Stock Picks group members are expected to vary even less frequently.

Stock Picks: MVG, an equally weighted grouping of TSX/TSX producers, is constructed using rule-based stock picking strategy. For more details please see:

  • Rankings for a description cost and benefit metrics we use to rank TSX/TSXv gold and silver producers.

  • Max Value Group of TSX/TSXv Gold and Silver Producers Criteria for the rules used to construct the Max Value Group before trading begins on each buy date.

  • Profiles for the 2014-12-18 version of the cost and benefit metric rankings of various equally weighted groups of TSX/TSXv gold and silver producers, including the Max Value Group.

The Stock Picks: S1, Stock Picks: S2 and Stock Picks: S3 Stock Picks are alternate stock picking strategies under current investigation. Complete details, including access to more back testing results and alternate selection strategies, are available on a subscription basis.

The Oracle groups, created by using a look ahead cheat designed to select the best (or worst) possible returns from buying and holding an equally weighted group of TSX/TSXv gold/silver producers, are excluded from highlighting.

The ETF groups assume you buy and hold the actual ETF. The Physical groups assume you are buying/selling gold (or silver) bullion at the spot market price at the TSX market closeing time.

Conclusions

In a rising gold market, the gold equity ETFs provide a significantly better return than the returns on physical gold or silver. However, the best returns can be expected from the application of stock picking strategies. This page now provides live testing of 4 alternate stock picking strategies (Stock Picks: MVG, Stock Picks: S1, Stock Picks: S2 and Stock Picks: S3). Currently, the Stock Pick strategies are limited to TSX/TSXv producers. Access to full details on back testing results from various stock picking strategies is available to monthly / quarterly subscribers (customized per subscriber).

Although no buy and hold stock picking strategy can better or even equal the outstanding returns for the Oracle: Best 20, the Oracle: Best 20 does provide a hard upper bound against which to benchmark returns from an implementable stock picking strategy.

In a flat gold market, the performance difference between the stock picking strategies (the Stock Picks: groups) and gold equity ETFs is expected to narrow.

In a falling gold market, holding physical gold/silver is expected to loose the least of the various groups presented while the ETFs and stock picking strategies can be expected to yield the poorest returns.

Since holding gold/silver bullion investments in a falling market are, by definition, going to loose money, an overall gold/silver investment strategy to maximizing returns overall markets to consider is:

  • increasing investment weighting in Stock Picks as the price of gold rises,

  • move investments from Stock Picks to physical gold/silver as the price of gold becomes range bound, and

  • move into and stay in cash as the price of gold is falling.

GoldMinerPulse does NOT offer any investment advise. Rather, all discussions here of investment strategies are made to introduce GoldMinerPulse services - GoldMinerPulse provides actionable data to investment professionals to support their investment and trading strategies (see Contact for more details). The Stock Picks: MVG, S1, S2 and S3 are concrete example of the kinds of actionable information that can be built from value based metrics available from GoldMinerPulse.

   

Gold and Silver Production Statistics

Production Based on Last/Latest Four Quarters

Using the most recently available quarterly production reports, the gold and silver stocks listed on the TSX/TSXv are reporting production totals on a rolling 4 quarters of:

  • Gold: 29.53M ounces (1,012.46 tons or 918.49 tonnes), a 0.6% change over the 4 quarters ending at the prior quarter.

  • Silver: 166.94M ounces (5,723.66 tons or 5,192.41 tonnes), a 4.7% change over the previous 4 quarters ending at the prior quarter.

The running totals for quarterly production numbers for companies with a quarter ending in the months of July, August and September 2014, along with the changes on a Quarter on Quarter (QoQ) basis, for TSX/TSXv Gold and Silver producers are:

# Producers
Reporting
Gold Produced
Latest Q Report
QoQ
Gold Δ
Silver Produced
Latest Q Report
QoQ
Silver Δ
76 of 87 5,725,399 oz
 
196.3 tons
 
178.1 tonne
7% 35,116,082 oz
 
1,204 tons
 
1,092 tonne
-3%

TSX/TSXv Gold Reserves and Resources

Gold reserves and resources for TSX/TSXv listed companies with at least 12.5% of their in situ metal values from gold:

Metric

 
Type of Equity

Gold Reserves
(tons)

 

Gold Resources
(tons, inclusive of reserves)

 

Gold Producers

17944 41293

Gold Developers

3978 14246

Gold Explorers
>5M Oz AuEq

2025 8057

Gold Explorers
<5M Oz AuEq

68 5925

All Gold Equities

24015 69520

Based on gold production rates reports over the last 4Q, TSX/TSXv gold producers have 21.5 years of gold reserves.

TSX/TSXv Silver Reserves and Resources

Silver reserves and resources for TSX/TSXv listed companies with at least 12.5% of their in situ metal values from silver:

Metric

 
Type of Equity

Silver Reserves
(tons)

 

Silver Resources
(tons, inclusive of reserves)

 

Silver Producers

178736 386068

Silver Developers

49925 134259

Silver Explorers
>5M Oz AuEq

6562 61819

Silver Explorers
<5M Oz AuEq

174 45997

All Silver Equities

235396 628143

Based on silver production rates reports over the last 4Q, TSX/TSXv silver producers have 33.6 years of reserves.

TSX/TSXv Gold and Silver Equities Statistics

The following table includes TSX/TSXv listed companies with at least 12.5 of their in situ metal values from gold or silver (in US$).

Type of Equity

 
Metric

Producers
 

 

Developers
 

 

Explorers
>5M Oz AuEq

 

Explorers
<5M Oz AuEq

 

Enterprise Value
Per Oz AuEq

$67 $8 $2 $11

Estimated Discovery Cost
Per Oz AuEq

  $12 $3 $21

Net Working Capital
(US$)

$20,942M $811M $427M $492M

TSX/TSXv Company Counts by Category

TSX/TSXv company may appear at most one time in the following table. Companies without a gold/silver resource (generators, historic and grass roots) are included on the basis of qualitative assessment of descriptions published in quarterly financial statements.

Category # of Companies in Category

Gold/Silver Streaming and Royalty Companies

7

Gold/Silver Producers

87

Gold/Silver Developers

118

Gold/Silver Explorers

228

Gold/Silver Generator Model Companies
(No Gold or Silver Resource)

28

Gold/Silver Explorers with Historic Resource
(No Gold or Silver Resource)

26

Gold/Silver Grass Roots Explorers
(No Gold or Silver Resource)

518

Total Companies Listed in Sedar.com
(Current, historic, TSX/TSXv, CNDX, and others. See Note 1)

~30,000

Note 1: All TSX/TSXv listed companies are required to file in Sedar.com. However, Sedar.com companies include current companies, companies that no longer file (i.e. as a result of take over, merger, re-organization, bankruptcy, etc.), CNDX companies (Canadian over the counter market listings), and companies listed on foreign exchanges (e.g. US OTC, London, etc.) that have some connection with Canadian investors.

Gold and Silver Miner Market Capitalization Estimates

TSX/TSXv Grouping TSX/TSXv Total Market Capitalization
(Millions of US$)
Gold & Silver Producers $87,990
Gold & Silver Streamers $19,951
Gold & Silver Developers $7,010
Gold & Silver Explorers $3,990
Total TSX/TSXv Gold & Silver Miners $118,941
 
Market Cap Estimate For the World's
Gold & Silver miners
$349,813

Note: All TSX/TSXv companies, with at least 12.5% of their total in situ metal value coming from either gold or silver and which match the category definitions, are included in the above table.

Gold & Silver Producers category includes those companies that report quarterly production counts and revenues for gold and/or silver production.

Gold & Silver Streamers category includes companies focused on creating gold/silver streams or royalty plays.

Gold & Silver Developers category includes companies with an explicit plan to start production in the near term or which have a spending profile and work plans to imply potential future production.

Gold & Silver Explorers category includes companies that are primarily focused on expanding resource counts at one or more existing gold and silver projects without indicating plans for future production.

Generator and grass roots companies are not covered.

Market capitalization is always computed using closing market price (expressed in US$ using exchange rates in effact at market closing time) and the issued share of each company. Updates are made daily after the TSX market close.

Based on share of annual gold production, the TSX/TSXv gold producers are believed to represent approximately 33% of the world's gold producers. The explorers and developers are believed to represent roughly 50% of the world total for companies in these groupings.

Detailed fundamental metrics on the TSX/TSXv gold and silver miners are available on a subscription basis. Use the contact information below to get more information.

LBMA GOFO Rates

On 18 December the LBMA GOFO rates 1 month rate closed at -0.06250 (down from -0.03333 on the previous day). The 2 and 3 month rates turned negative while the 6 and 13 month rates dropped but remained positive. See Negative GOFO Rates on the LBMA for more a summary of negative rate days.

Gold ETF News

The daily changes in TSX/TSXv gold/silver equity holdings in the Market Vectors Gold Miners (GDX), Market Vectors Gold Junior Miners (GDXJ), BMO Junior Gold Index ETF (ZJG) and Sprott Gold Miners ETF (SGDM) are noted below.

  • 18 December - GDX decreased holdings by -$34.4M. GDXJ decreased holdings by -$6.2M. SGDM outstanding units increased by 200,000. ZJG.TO holdings were unchanged.

  • 17 December - GDX decreased holdings by -$43.7M. GDXJ decreased holdings by -$8.9M. SGDM outstanding units increased by 150,000. ZJG.TO holdings were unchanged.

  • 16 December - GDX increased holdings by $4.4M. GDXJ increased holdings by $6.3M. ZJG.TO and SGDM holdings were unchanged.

  • 15 December - GDX holdings were unchanged. GDXJ decreased holdings by -$4.7M. SGDM outstanding units increased by 100,000. ZJG.TO holdings were unchanged.

  • 12 December - GDX decreased holdings by -$27.9M, GDXJ decreased holdings by -$6.8M and ZJG.TO outstanding units dropped by -100,000. SGDM holdings were unchanged.

  • 11 December - GDXJ decreased holdings by -$8.1M. GDX, SGDM and ZJG.TO holdings were unchanged.

  • 10 December - GDXJ decreased holdings by -$1.2M. GDX, SGDM and ZJG.TO holdings were unchanged.

  • 9 December - GDX decreased holdings by -$2.4M and GDXJ decreased holdings by -$6.3M. SGDM and ZJG.TO holdings were unchanged.

  • Note: On 22 September Market Vectors Junior Gold Miners ETF (GDXJ) added a Market Vectors Gold Miners (GDX) holding as its 4th largest position.

  • Seabridge Gold (SEA CN, SA), a dynamic, well-funded company active in Northern British Columbia, is the only gold explorer/developer included in both the Market Vectors Gold Miners ETF (GDXJ) and the newly-launched Sprott Gold Miners ETF (SGDM). Visit Seabridge Gold Inc. Project Summary for the latest company headlines and resource metrics including the 20 November 2014 Seabrdige Gold Expects Substantial Expansion of Deep Kerr Resource at KSM

Shanghai Gold Exchange Gold Closing Price Versus Kitco Closing Price

The Shanghai Gold Exchange Yuan Renminbi price of gold and premium/discount in US dollars relative to the Kitco spot price at TSX close follows (yearly average and 1 year rolling time period comparisons):

Yearly Average Shanghai Gold Exchange Premium:

  • 2014 (YTD average): $3.29

  • 2013 (Full year average): $16.09

Rolling Week on Week Comparisons of Shanghai Gold Exchange (SGE) Premiums (Δ) vs Kitco Spot Gold Price:

Date Shanghai Gold Exchange Close - Au(T+D) Kitco Spot Price at TSX Close SGE Δ
Yuan Renminbi/gram US$/oz
18 December 2014 239,90 $1201 $1198 $3
17 December 2014 238.96 $1202 $1189 $13
16 December 2014 240.20 $1207 $1196 $11
15 December 2014 244.30 $1227 $1193 $34
12 December 2014 243.03 $1222 1223 -$1
11 December 2014 243.03 $1222 $1226 -$4
...
19 June 2014 256.00 $1278 $1319 -$41
18 June 2014 253.99 $1268 $1274 -$7
17 June 2014 253.53 $1267 $1270 -$4
16 June 2014 256.33 $1280 $1272 $8
13 June 2014 254.06 $1273 $1277 -$4
12 June 2014 252.11 $1261 $1274 -$13
...
19 December 2013 240.79 $1234 $1190 $44
18 December 2013 242.84 $1254 $1231 $29
17 December 2013 244.90 $1254 $1231 $23
16 December 2013 242.19 $1240 $1241 -$0
13 December 2013 241.69 $1238 $1239 $0
12 December 2013 246.23 $1261 $1227 $34

Currency conversions made using spot rates available on the date. The SGE Δ is computed as the SGE closing price in US$ minus Kitco Spot Price (bid) at TSX Close.

See the SGE page for daily updates on the Shanghai Gold Exchange, including a comparison of SGE gold delivery from vault in 2014 versus 2014.

Also see China Looking To Dominate Gold Market With International Shanghai Gold Exchange, a 27 June 2014 Kitco News story.

Thursday's News Highlights

Select Thursday's news headlines from the 1,344 mining stocks (producers, developers, explorers, base metal producers plus a few of the capital pool companies) GoldMinerPulse tracks:

  • Barrick Gold Corporation (ABX.TO) | Visit
    • 08:09pm EST Final Glance: Gold companies [AP more]
    • 01:48pm EST Midday Glance: Gold companies [AP more]
    • 11:47am EST Barrick suspends Zambian output after royalty rise [at Financial Times more]
  • Chesapeake Gold Corp. (CKG.V) | Visit
    • 09:00am EST Chesapeake Provides Development Plan For Metates Updated Pre-Feasibility Study [Marketwired more]
  • Lake Shore Gold Corp. (LSG.TO) | Visit
    • 06:00am EST Lake Shore Gold Targets Continued Strong Production, Low Unit Costs and Aggressive Exploration in 2015 [Marketwired more]
  • Rubicon Minerals Corporation (RMX.TO) | Visit
    • 06:00am EST Rubicon Begins Stockpiling Mill Feed for Projected Production Commencing Mid-2015 [Marketwired more]
  • Timmins Gold Corp. (TMM.TO) | Visit
    • 06:00am EST Timmins Gold to Purchase Caballo Blanco Gold Project [Marketwired more]

View more of Thursday's news headlines here. Our news headlines update each TSX/TSXv trading day, typically mid morning and then several times during the trading day.

Gold No Longer Slumbers

Russia boosts purchases, as Switzerland gets ready to vote on underpinning the franc with the metal.

What do Vladimir Putin, the Islamic State, and a fair number of Swiss citizens share? And on which single issue do economists of virtually every stripe agree?

Gold.

Russia's president, the Islamic State, and many Swiss all harbor a deep suspicion about government-issued paper currencies. Mainstream economists, who rarely can reach a conclusion on anything, are united in their disdain for the metal. John Maynard Keynes famously called it a "barbarous relic," and Milton Friedman dismissed its use as money, declaring "you might as well use pork bellies" as the basis of a monetary system.

Mr. Market, for his part, is duly agnostic. But after pummeling gold steadily lower from its peak around $1,900 an ounce in September 2011, he is showing signs that he could be done dumping on the metal, which hit a low of $1,131.85 an ounce this month. Gold-mining stocks, which often point to the future direction of bullion, have moved up sharply in the past couple of weeks.

...

Barrons.com's technical guru, Michael Kahn, last week wrote that signs of a return to a bull market in the metal are visible on the charts. He sees gold testing resistance around $1,250 an ounce in coming weeks. If successful, a test of $1,500 would seem plausible "if the bulls remain in control," which would still be well short of the historic $1,922 peak of September 2011, marked by a frenzy of television and radio advertising for bullion.

Read the complete article at Barron's Up and Down Wall Street, Nov 21, 2014

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