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St Andrew Goldfields Ltd.

St Andrew Goldfields Ltd. is a Canadian gold mining and exploration gold mining company with an extensive land package in the Timmins mining district in northeastern Ontario, Canada, which lies within the world famous Abitibi greenstone belt. The company operates the Holt, Holloway and Hislop gold mines, and produced ~100,000 oz gold for 2013. St Andrew controls 120km long package which straddles the Porcupine-Destor Fault Zone, host to numerous gold deposits and mines in the region. The company, using its extensive geological database, is targeting exploration at numerous sites and has focused the exploration program on areas that lie in close proximity to the existing mines and infrastructure. The company is also conducting advanced exploration work at its Taylor project.

Expert Comments:

Randall Abramson, Trapeze Asset Management (1/28/15)
"St Andrew Goldfields Ltd., whose mines are in a low-risk mining jurisdiction, is operated by an experienced, highly regarded management team. The company owns a highly efficient, modern mill and a large land package with significant potential for organic growth. . .has $21M cash on hand, operates at below-average all-in costs, and the last 13 consecutive quarters have been cash-flow positive. Production has lifted back near record levels. . .St Andrew is likely the cheapest among its peers on an enterprise value per ounce and price per cash earnings basis."

"In Quebec I follow St Andrew Goldfields Ltd. It has properties right up to the Québec border on the Destor-Porcupine Fault line. I really like this company. . .St Andrew revised its guidance upward about six months ago. What's exciting about St Andrew is its Taylor deposit, the company's next development play. That is a high-grade system as well. St Andrew is processing a bulk sample from the Taylor deposit as we speak. Bottom line on St Andrew is that it could increase its production, not this year, but in 2016. Its balance sheet is pretty good as well. . .St Andrew's all-in sustaining costs are high, at $1,060/oz, but they're coming down. St Andrew is doing a good job of efficiently mining what it has. St Andrew has a royalty issue with Franco-Nevada, which is not going to go away any time soon, but Taylor will lessen the royalty load after it goes into production." read more >

Ben Kramer-Miller, Seeking Alpha (1/10/15)
"St. Andrew Goldfields Ltd. reported its Q4/14 and 2014 production. The former came in at 22,600 oz and the latter at 90,700 oz, at the midpoint of the company's 85,000–95,000 oz guidance. . .for a company that produces 90,000 oz gold per year, St. Andrew Goldfields is inexpensive, with a valuation of approximately $100M, $18M cash and just $5M debt. . .this undervaluation is more apparent when we consider that it has the Taylor mine in its pipeline, which will be the company's lowest-cost producer while increasing annual production by nearly 50%. . .I recommend the company."

"St Andrew Goldfields Ltd. is one of Primero Mining's neighbors. St Andrew has been working toward getting the Taylor mine up and running. Once that mine is in operation, St Andrew's mill would be east of Black Fox and Primero's Stock mill whereas Taylor is west. St Andrew would effectively be passing right by Primero's mill to travel to its mill. Do I think that there could be further consolidation in the district? It's possible but I don't think that is as likely. Developing working agreements between companies to improve efficiency is a more likely outcome in my mind." read more >

"One company that I cover is St Andrew Goldfields Ltd. Primero Mining bought Brigus Gold and its Grey Fox gold deposit, which is next to St Andrew's Hislop gold mine. The whole area is crying out for consolidation. . .Primero started a process that is going to continue and St Andrew will be part of that consolidation at the end of the day. . .St Andrew is a very inexpensive junior producer that produces about 85,000 oz per year and that's not exciting the market. Some of these junior producers need to merge to reach a critical mass so that they can afford their fixed costs. There are potential synergies in the old Brigus and St Andrew because they're right next to each other. . .St Andrew is mining efficiently. It is increasing the throughput at the Holt mill, which is an extremely good asset. Its main asset is the Holt mine. Next door to it is the Holloway mine and farther down the trend is Hislop. The Holt mine produces about 85% of its profits. [St Andrew's current all-in costs] are about $1,050/oz. The company published its earnings in mid-August, and those were nil versus nil so that's nothing to jump up and down about. I'm recommending it because it's very inexpensive and I see it as part of the M&A potential of that area." read more >

"St Andrew Goldfields Ltd. has some properties in an area where there has been some recent M&A activity. Primero Mining bought Brigus Gold Corp.'s Grey Fox gold project, which is in the same geological trend as an adjacent St Andrew property. Should there be more consolidation in the Abitibi Gold Belt, St Andrew could be part of the equation. St Andrew has a big land package and a centralized mill that is currently not operating at full capacity. There are some strategic advantages around many of the St Andrew properties. The company also has a $190M tax pool. Sooner or later it will likely be part of another group in the same area." read more >

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Investing Highlights
 
Consistenly delivering on objectives - 14 quarters of positive operating cashflow
 
120 km of highly prospective land in the world-renowned region of Abitibi
 
Great potential for organic growth
catalyst Calendar
St Andrew Goldfields Ltd. Content