This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Junior Miners Are Buy Opportunities

Stocks in this article: NG FRG KGN

NEW YORK ( TheStreet) -- NovaGold Resources (NG), Fronteer Gold (FRG) and Keegan Resources (KGN) are three junior mining stocks which have declined 11.3%, 2.3% and 5.7%, respectively, as compared to a 0.2% drop in the S&P 500 during the last month, thereby presenting an attractive buying opportunity at current levels.

NovaGold Resources, engaged in the exploration and development of mineral properties in Alaska, the United States and British Columbia, reported its second-quarter earnings and project updates during the last week. During the quarter, two major investors in the gold sector, Paulson & Co. and Quantum Partners, managed by Soros Fund Management, invested $100 million and $75 million, respectively into the company.

The company also revealed that gold reserves at the Donlin Creek project, its core property, increased by 15%, or 4.3 million ounces. The property is 50% self-owned and 50% by Barrick Gold (ABX).

During the quarter, NovaGold reported $175 million in cash from a non-brokered equity offering. Meanwhile, the after-tax loss for the period stood at $15.75 million as compared to a $4.77 million loss in second quarter of 2009. The loss was mainly due to a decline of $13 million in foreign exchange gains recorded in the prior-year quarter.

Canada-based Wellington West Capital Markets on Thursday assigned a market perform rating to the stock with price target of $7.23, implying a 14% upside over current levels.

Fronteer Gold, formerly known as Fronteer Development Group, is engaged in the acquisition, exploration and development of mineral properties or interests, gave a mid-year progress update on its key gold projects in late June.

In total, Fronteer Gold has 10 operating drill rigs with an additional rig which was to be added during the end of last month. The company plans drilling of more than 65,000 meters across all projects in 2010, with almost 26,000 meters drilled as of June 2010. The total budget for all gold projects is about $35 million with Fronteer responsible for $20 million of expenditures.

RBC Capital Markets on Wednesday assigned an outperform rating to the stock with price target of $6.71, implying a 12% upside over current levels.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs