These Gold Mining Stocks Fell While Others Made Big Gains: NAK, GORO & TLR

On Friday, nearly all gold mining stock were making spectacular gains, except for Northern Dynasty Minerals (NYSEAMEX: NAK), Gold Resource Corporation (NYSEAMEX: GORO) and Timberline Resources (NYSEAMEX: TLR) which all fell for the day. Specifically, Northern Dynasty Minerals (NAK) fell 1.14%, Gold Resource Corporation (GORO) fell 2.75% and Timberline Resources (TLR) fell 7.89% while nearly all other gold mining stocks were rebounding from months of declines as gold prices jumped amid more QE speculation thanks to the weak jobs report. So are these gold mining stocks still worth your attention? Here is a closer look to help you decide:

Northern Dynasty Minerals (NYSEAMEX: NAK) Took Flak From an EPA Report a Few Weeks Ago

Northern Dynasty Minerals’ principal asset is the Pebble copper-gold-molybdenum deposit and 650 square miles of direct and indirect interests in mineral claims in southwest Alaska. On Friday, Northern Dynasty Minerals fell 1.14% to $2.6 (NAK has a 52 week trading range of $2.25 to $11.95 a share) for a market cap of $246.99 million plus the stock is down 56.95% since the start of the year, down 77.5% over the past year and down 80.4% over the past five years. Its worth noting that in late May, Northern Dynasty Minerals when from the $4 level down to the $2.5 level after a poorly received response to an assessment report by the US Environmental Protection Agency (EPA). Specifically, Northern Dynasty Minerals issued a detailed press release where it criticized the EPA report as being both “rushed and inadequate.” However and given that the current administration is hardly friendly towards resource industries in general, the EPA report should be no surprise. Otherwise, it should be noted that Northern Dynasty Minerals has no revenues; net losses of C$20.14M (2011), C$14.12M (2010), C$12.74M (2009) and C$1.15M (2008) for the past four years; and had C$35.73 million in cash and short term investments to cover C$4.18M in total liabilities. In other words, it should have enough cash to get it through into next year.

Gold Resource Corporation (NYSEAMEX: GORO) Is Focused on Mexico

Gold Resource Corporation is a mining company focused on production and development of high-grade gold and silver projects with low operation costs that can produce high returns on capital. Gold Resource Corporation has 100% interest in six high-grade gold and silver properties in Mexico's southern state of Oaxaca. Investors should note that for the first quarter, Gold Resource Corporation reported a 308% increase in the production of precious metal gold equivalent along with an increase of 281% in mine gross profit. For all of 2012, Gold Resource Corporation had $105.16M in revenue and $58.37M in net income. However and on Friday, Gold Resource Corporation fell 2.75% to $25.77 (GORO has a 52 week trading range of $15.06 to $28.74 a share) for a market cap of $1.36 billion but the stock is up 21.8% since the start of the year, down 5% over the past year and up 72.5% since 2010. Gold Resource Corporation also has a forward dividend of $0.72 for a dividend yield of $2.8%.

Timberline Resources (NYSEAMEX: TLR): Gold Production is Targeted for the End of the Year

Timberline Resources is exploring and developing advanced-stage gold properties in the western USA. Specifically, Timberline Resources is working on a transaction that will increase its ownership stake in its Butte Highlands Joint Venture in Montana from 50% to 100% and gold production is targeted to commence there later this year. Hence, Timberline Resources is worth watching. Otherwise, its worth noting that Timberline Resources has not produced any revenue over the last two fiscal years ended at the end of September; has net losses of $2.33M (fiscal 2011), $5.75M (fiscal 2010), $7.31M (fiscal 2009) and $10.10M (fiscal 2008); and had $5.23M in cash to cover $0.44M in total liabilities as of the end of last March. In other words, Timberline Resources probably has enough cash to last it until gold production starts. On Friday, Timberline Resources fell 7.89% to $0.35 (TLR has a 52 week trading range of $0.27 to $0.99 a share) for a market cap of $21.80 million is down 38.6% since the start of the year, down 58.8% over the past year and down 89.4% over the past five years.

The Bottom Line. Its hard to see why Northern Dynasty Minerals (NAK), Gold Resource Corporation (GORO) and Timberline Resources (TLR) did not join the gold mining stock party on Friday but patient investors may yet be rewarded by the end of the year.