Unsplash photo by Dominik Vanyi
Anyone keeping an eye on the global economy has likely heard about inflation recently, especially with US Federal Reserve Chairman Jerome Powell recently stating the Fed’s views on how much is tolerable and how long it would stay.
Concerns about inflation have increased, and so has talk about hedges. This makes the present a once-in-a-lifetime opportunity for precious metals and mining corporations.
Historically, assets such as gold, silver, and platinum have been thought of as inflation hedges. As a result, although consumers may be concerned about rising prices, investors are looking for “safe haven” investments. However, one of the difficulties of investing in miners is determining how to choose from a huge variety of options.
We used the OTCQX Best 50 list as a tool to help narrow down the field—the OTCQX Best 50 is a ranking of top performing companies on the OTCQX Best Market based on total return and average daily dollar volume increase in 2020–here are four companies that recently announced earnings.
Calibre Mining Corp. is a mining company based in Canada (OTCQX: CXBMF)
Calibre is a multi-asset gold producer with an annual installed processing capacity of 2,700,000 tonnes. In the previous year, the company reported a 33 percent year-over-year rise in revenue of $82 million, which was revealed in Q3 2021. It also improved its net income and operating income, with year-over-year gains of 31.69 percent and 39.55 percent, respectively, from Q3 2021.
K92 Mining Inc. is a mining company based in Canada (OTCQX: KNTNF)
K92 is a mining business that has a large operation at the Kainantu Gold Mine site in Papua New Guinea’s Eastern Highlands province, with gold, silver, and copper production potential. KNTNF has been steadily rising over the last two years, with prices as low as $1.27 per share as recently as June 2019. The security’s price has risen steadily, and it now trades in the $5-7 range. They announced multiple significant events in the previous quarter, including “record quarterly revenue of US$29.5 million, up 7% from Q1 2020,” sales of 21,879 oz of gold, 394,635 lbs of copper, and 7,463 oz of silver, full repayment of a $5 million loan, and an increased cash balance of $66 million.
Discovery Silver Corp. is a company that produces silver (OTCQX: DSVSF)
Discovery Silver is a mining business in Mexico that is developing a large-scale, high-margin silver asset “with the opportunity to expand into one of the world’s largest primary silver mines.” DSVSF has decreased from a recent high of $2.18, with a ticker that was $0.68 a year ago, to now gains of 150 percent and a price of $1.70. Despite an 8.7% drop in net profits in the most recent quarter, Discovery’s big silver prospect may come to fruition just in time for inflationary concerns.
GoGold Resources, Inc. is a company that specializes in gold mining (OTCQX: GLGDF)
GoGold Resources is a silver and gold producer based in Canada with various large-scale projects in Mexico. By producing and selling a substantial amount of silver, GoGold reported this year that their Parral location had “Generated $6.3M US of Free Cash Flow for Quarter Ending March 31, 2021.” GLGDF has increased by 272 percent in the last year, rising from $0.71 to $2.65 currently. The company’s most recent results report showed an EBITDA of $9.1 million Canadian dollars and an EPS of 0.03.
Visit https://www.otcmarkets.com to learn more about other mining, metals, and other firms that trade on the OTCQX Market.
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