3 Junior Miners Where the Market Cap is a Fraction of the Project Economics
With gold at $4,100 plus/oz, these three junior miners are worth monitoring for expected corporate development news. The disconnect between their current market cap and the economic value demonstrated in their latest studies are attractive.
# Sonoro Gold — $SMOFF, $0.135
**Cerro Caliche | Sonora, Mexico**
* Market cap: $58.2 Million
* 52-week high: $0.25 USD
* Updated Preliminary Economic Assessment (PEA) after-tax NPV: $224 Million
* NPV / Market Cap: Approximately 3.9x
* Sonoro is moving toward permitting while continuing exploration with a 50,000 meter drilling program.
* Updated PEA showed a 50% after-tax Internal Rate of Return (IRR) at $3,500 gold
* 459,000 oz of gold equivalent (AuEq) produced over the 10-year mine life (cited in PEA before new properties added to project and before 50,000 meter drilling program)
* Possible spinoff of San Marcial gold project to shareholders
# Heliostar Metals — $HSTXF, $1.63
**Ana Paula | Mexico**
* Market cap: $456.5 Million
* 52-week high: $2.57 USD
* Base-case PEA after-tax NPV: $426 Million
* Upside-case PEA NPV: $1.012 Billion
* Upside-case NPV / Market Cap: 2.2x
* Ana Paula's underground PEA indicates approximately 874,700 oz of gold production.
* The PEA shows a 28.1% after-tax IRR at $2,400 gold.
* Heliostar is targeting a path toward production in 2028.
* The $1.012 Billion upside-case NPV at (using $3,800 gold)
# Troilus Mining — $CHXMF, $1.43
**Troilus | Quebec**
* Market cap: $810 Million
* 52-week high: $1.83 USD
* Updated technical-report after-tax NPV: $3.2 BILLION
* NPV / Market Cap: 4.0x
* Updated technical report increased NPV substantially from previous PEA
* After-tax IRR: 22%
* Troilus is a major gold + copper development project in Quebec.
**Valuations Summary**
* SMOFF $58 Million market cap vs. $224 Million PEA NPV (before recent property additions to concession)
* HSTXF: $450 Million market cap vs. $1.0 Billion PEA NPV
* CHXMF: $800 Million market cap vs. $3.2 Billion technical-report NPV
These junior miners have real economic studies, defined resources and a path toward production. But there is no substitute to doing your own due diligence.