With the major stock market indexes hovering near all-time highs, many investors have rotated away from safe-haven assets like gold. In addition, Fed Chairman Jerome Powell signaled at its recent annual Jackson Hole summit that the central bank could begin tapering activities later this year. However, benchmark interest rates are not expected to be raised in the near term.

Consequently, gold moved near a four-week high today, with spot gold at roughly $1,814.76 per ounce. Furthermore,  rising geopolitical tensions related to Afghanistan and the resurgence of COVID-19 cases due to the rapid spread of the Delta variant could increase safe-haven demand for gold.

Given this backdrop, we think it could be wise to invest in small-cap gold mining stocks Centerra Gold Inc. (CGAU), Torex Gold Resources Inc. (TORXF), and Argonaut Gold Inc. (ARNGF).

Click here to check out our Gold and Silver Industry Report for 2021

Centerra Gold Inc. (CGAU)

With a market capitalization of $2.31 billion,  Toronto, Canada-based CGAU is a gold mining company that acquires , explores for, develops, and operates gold and copper properties internationally. Its principal projects include the 100% owned Mount Milligan gold-copper mine located in British Columbia, Canada.

CGAU’s revenue increased 56% year-over-year to $202.30 million for the second quarter ended June 30, 2021. Its net earnings from mine operations grew 253% year-over-year to $64.90 million, while its adjusted FCF from continuing operations increased 156% year-over-year to $35.30 million. In addition, its cash provided by operating activities from continuing operations increased 22% year-over-year to $60.30 million.

The company’s revenue is expected to increase 14.1% year-over-year to $1.17 billion in fiscal 2022. CGAU’s shares have gained 4.8% since hitting their 52-week low of $6.71 on August 19, 2021, to close Friday’s trading session at $7.80.

CGAU’s POWR Ratings reflect this promising outlook. The company has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

The stock has an A grade for Quality, and a B grade for Value. Within the Miners – Gold industry, it is ranked #2 of 36 stocks. Click here to see the additional POWR Ratings for CGAU (Sentiment, Growth, Stability, and Momentum).

Torex Gold Resources Inc. (TORXF)

TORXF operates as an intermediate gold producer in Mexico. The Toronto, Canada-based company also explores silver, copper, and carbon deposits. It holds a 100% interest in the Morelos Gold property, comprising seven mineral concessions covering a total area of approximately 29,000 hectares located in the Guerrero Gold Belt in southern Mexico. It has a $956.77 million market capitalization.

On August 5, 2021, Jody Kuzenko, the company’s President & CEO, said, “With robust cash flow generation from ELG, a strong balance sheet, and some key strategic decisions behind us, we are well positioned to deliver on our operational guidance for 2021 as well as our long-term plan to deliver shareholder value.”

TORXF’s revenue increased 88.7% year-over-year to $205.90 million for its  fiscal second quarter, ended June 30, 2021. Its adjusted EBITDA grew 150% year-over-year to $122.10 million, while its adjusted net earnings increased 1,216.7% year-over-year to $47.40 million. Also, its adjusted EPS came in at $0.55, up 1,275% year-over-year.

TORXF’s revenue is expected to increase 5.9% year-over-year to $841.33 million in its fiscal year 2021. The stock has gained 64.6% in price over the past year to close Friday’s trading session at $11.16.

TORXF’s POWR Ratings reflect solid prospects. The company has an overall B rating, which translates to a Buy in our proprietary rating system. In addition, it has an A grade for Value, and a B grade for Growth and Quality.

Click here to see the additional POWR Ratings for TORXF (Stability, Sentiment, and Momentum). Again, TORXF is ranked #1 in the  Miners – Gold industry.

Click here to check out our Gold and Silver Industry Report for 2021

Argonaut Gold Inc. (ARNGF)

ARNGF in Reno, Nev., engages in the mining, mine development, and mineral exploration activities at gold-bearing mineral properties in North America. The company explores primarily for gold and silver deposits and has a market capitalization of $748.65 million. Its primary assets are the El Castillo mine and San Agustin mine, forming the El Castillo Complex located in Durango, Mexico.

On August 11, 2021, Pete Dougherty, ARNGF’s President, and CEO, said, “In terms of operational improvements, we expect to ramp up the new conveying and stacking system at Florida Canyon to design capacity during the third quarter and to start reaping the benefits of this investment during the fourth quarter.”

ARNGF’s revenue increased 107% year-over-year to $120.20 million for its  fiscal second quarter, ended June 30, 2021. Its gross profit grew 125% year-over-year to $39.80 million, and its adjusted net income increased 186% year-over-year to $24.40 million. Also, its adjusted EPS came in at $0.08, up 72% year-over-year.

Analysts expect ARNGF’s EPS to increase 36.4% year-over-year to $0.30 in its fiscal year 2022. In addition, its revenue is expected to grow 39% year-over-year to $444.33 million in fiscal 2021. Over the past six months, the stock rallied 49.8% in price to close Friday’s trading session at $2.41.

ARNGF’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. In addition, it has a B grade for Growth, Value, and Momentum.

We also have graded ARNGF for Quality, Sentiment, and Stability. Click here to access all ARNGF’s ratings. ARNGF is ranked #9 in the Miners – Gold  industry.

Click here to check out our Gold and Silver Industry Report for 2021

CGAU shares were trading at $7.61 per share on Monday afternoon, down $0.19 (-2.44%). Year-to-date, CGAU has declined -33.82%, versus a 21.89% rise in the benchmark S&P 500 index during the same period.

About the Author: Nimesh Jaiswal

Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...

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