The smaller gold and silver stocks are mostly ignored by the major Wall Street institutions because the trading in them fails to provide the kind of liquidity they like. Nevertheless, these miners trade more or less in line with the majors in the sector and, lately, made it to new 52-week highs.
Since they have smaller capitalizations than the big mining stocks, they are sometimes looked at as possible buy-out candidates. Sometimes, the smaller companies merge with other smallish companies. When that happens the price of the one being purchased can take off.
Such instances don’t always take place but it’s something to keep in mind when considering how to diversify in the sector.
4 Small Cap Gold And Silver Miners.
Perpetua Resources.
Based in Boise, Idaho, the company recently changed its name from Midas Gold and operates facilities in that state’s Stibnite Mining District. In addition to the yellow metal, Perpetua mines antimony, a metal used in “wind turbines, solar panels, cell phones, munitions and batteries,” according to the firm’s website. Market capitalization is $674 million. The daily price chart above shows the new high.
Royal Gold.
Market cap for the Nasdaq-traded miner is $10.04 billion (compared to Newmont’s $66 billion and Agnico Eagle’s $43 billion). Corporate headquarters are located in Denver with additional offices in Vancouver, Toronto and Luzern, Switzerland. The company buys and manages precious metal stream and royalty interests. On the daily price chart above, you can see how the price broke above the September high.
Skeena Resources.
This NYSE-traded mining and exploration company is based in Vancouver and operates the Snip mine in British Columbia’s Golden Triangle region. Market capitalization is $1.09 billion. The stock is lightly traded with an average daily volume of 399,000 shares. That’s a new high on the above daily price chart.
Triple Flag Precious Metals.
This precious metals streaming and royalty company is headquartered in Toronto. Triple Flag assets include operations in Australia, Colombia, South Africa and Canada. The market cap is $3.67 billion. Average daily volume is 197,000 shares, relatively light for an NYSE stock. Note how the price just topped the May peak.
VanEck Vectors Junior Gold Miners ETF.
The mix of 91 holdings represents one way to quickly get reasonable diversification in this sector. This exchange trade fund is designed to reflect the movements of the MVIS
Vanguard Industrials ETF
No artificial intelligence was used on the writing of this piece.
More analysis and commentary at johnnavin.substack.com.
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