Five Gold Exploration Companies That Score High In Colombia

iStock_000008019898XSmallcolombiaBy Jeff Desjardins,aVisual Capitalist

The year has been a disappointing one for the BRICs, with China being the only country to bring significant GDP growth to the table. However, with a 4.2% GDP growth estimate for 2013 and low inflation, Colombia has still been flying under the radar as a growth story. Led by a wave of foreign investment focused on mining and oil, Latin America's fifth largest economy has been well on its way to reaching its economic potential.

Colombia is now home to 12 of the world's gold deposits larger than 1 million oz - most of which are in development. Many junior explorers are trying to capitalize in Colombia by finding the next significant deposit - about 20 companies in total.

Using our Tickerscores system, we recently calculated the scores for each exploration company in Colombia. Tickerscores is an independent and comprehensive framework that uses 20+ empirical variables and a sophisticated weighting algorithm to rate each company's "health" based on market conditions.

Colombia Breakdown

The average exploration company in Colombia scored a 42 out of 100 with a $2.5m cash position, 16.9% management common share ownership, +$7,836 in YTD insider transactions, 16.0 months of cash left at our blended burn rate, and 56.7% of total expenditures being spent on G&A. Note: we classify "exploration" companies as those that have not yet produced a resource estimate.

It should also be mentioned that, on average, exploration companies in Colombia have dropped in value more than most other jurisdictions we cover. Year-to-date, Colombian explorers are down around 55%, which could present an opportunity especially for a contrarian.

Here are some of the companies that rated the highest in our system and that have interesting upcoming catalysts:

Galway Gold Inc. (TSXV:GLW) - Score: 85/100

Galway is rated as the indisputable #1 in our Tickerscores system for Colombia with a rating of 85. Through its wholly owned Colombian subsidiary, Galway Gold holds an option to acquire a 100% interest in the Reina de Oro gold concession.