KGN, ABS and PMV: Ghana (Africa) Gold Mining Stocks for Gutsy Investors (AU, GFI, IAG)
KGN, ABS and PMV are small cap gold mining stocks in Ghana (Africa) that are an alternative to large cap Ghana gold mining plays, AU, GFI and IAG.
Keegan Resources (AMEX: KGN) Is Well Capitalized
Keegan Resources is an exploration stage mining company with gold concessions in Ghana that are in various stages of exploration. In fact, Keegan Resources recently announced the results of its Pre-Feasibility Study for its Esaase Gold Project and the company’s CEO noted that the study continued to show that the project will yield significant annual gold production over a mine life of 10+ years. On the other hand, it should be mentioned that at the end of the 2011 fiscal year (March 31, 2011), Keegan Resources reported no revenues and had net losses of $13,272k (2011), $6,873k (2010) and $3,319k (2009). However, Keegan Resources did end the 2011 fiscal year with $235,564k in cash to cover $10,115k in total liabilities – meaning the company is well capitalized to see its project through to completion. On Monday, Keegan Resources rose 2.06% to $5.45 (KGN has a 52 week trading range of $4.68 to $9.65 a share).
Abzu Gold (CVE: ABS) Recently Raised $3,600,000
Abzu Gold is a Canadian gold exploration and development company operating in Ghana where its strategic land position covers over 1,100 square kilometers of productive gold belts. Abzu Gold has recently announced the commencement of drilling at its Nangodi concession in the Bole-Nangodi Gold Belt - one of 10 concessions that are currently under option agreement with a wholly owned subsidiary of Kinross Gold (NYSE: KGC). Abzu Gold also announced early in August that it plans to increase the size of a previously announced non-brokered private placement to $3,600,000. Otherwise, American investors will need to dig around on Abzu Gold’s website and on Canadian regulatory websites for the company’s financials. On Monday, Abzu Gold fell 8% to C$0.46 (ABS has a 52 week trading range of C$0.45 to C$1.20 a share).
PMI Gold (CVE: PMV) Has Raised $35 Million
PMI Gold controls four previous operating mines on 85 kilometers of Ghana's major gold belts which were previously mined at much lower gold prices. PMI Gold has recently announced further positive drilling results at the key Nkran deposit at its flagship 100%-owned Obotan Gold Project where the company is currently undertaking a Pre-Feasibility Study. It was also noted that reporting the results from the 2011 drilling programme has been hampered due to significant delays in assay turn-around times from the company’s contract laboratory in Ghana due to the high amount of drilling activity currently going on in West Africa. Otherwise investors should note that PMI Gold had a $35 million capital raising that accompanied a December ASX listing. Hence, the company’s CEO has commented that PMI is ideally positioned for strong growth. On Monday, PMI Gold closed at C$0.47 (PMV has a 52 week trading range of C$0.36 to C$1.08 a share).
The Bottom Line. Of these three small cap Ghana gold mining stocks, Keegan Resources appears to be the strongest while investors would need to do further due diligence on exploration stage players Abzu Gold and PMI Gold.
John Udovich is a paid contributor of the SmallCap Network. John Udovich's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
Do NOT buy or sell IAG, PMV.V, GFI, AU, KGN, GSS, KGC or ABS.V until you have read everything.
SmallCap Network provides comprehensive research and opinions on IAG, PMV.V, GFI, AU, KGN, GSS, KGC and ABS.V. |
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| Date: | May 19, 2013 | |
| Price: | Free | |
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