The appeal of mining stocks, especially those in the exploration and development categories, is clear given the exponential leverage they can provide over the prices of their target commodities, supposing successful resource delineation and eventual production.
They key differentiator between a successful investment outcome and a loss, as is always the case, is a viable path to value creation. This path is especially tenuous for junior miners, which don’t generate revenue, are at the mercy of the capital markets and must generate exploration results telling an increasingly prospective story.
Given the acquired taste of sifting through drill results for alpha, it’s no shock that mining stocks with high-quality projects and management teams often go unacknowledged by the average micro-cap investor, causing wide dislocations between share price and potential shareholder value over the short and medium term.
That said, despite these market inefficiencies, investors still often get it right, rewarding mining industry participants in line with operational development and/or financial performance. Here are two companies to consider, each with stocks up considerably year-over-year, whose chief executive officers joined Stockhouse for an interview over the past week.
Compass Gold
Our first mining stock rising on robust operational development is Compass Gold, market capitalization C$19.75 million, which is poised to initiate production in less than two months from its 1,173-square-kilometre Sikasso property in Mali near several multi-million-ounce gold projects.
A Small Mining Permit, expected imminently, will allow for total production of 160,000 ounces of gold over four years, representing over US$450 million in the ground, with numerous gold discoveries still to be fully explored.
With gold testing all-time-highs over the past two years and many analysts seeing the price per ounce surpassing US$3,000 in 2025, investors have been enthusiastic about the company’s near-term cash flow potential.
Compass Gold stock (TSXV:CVB) has added 200 per cent year-over-year but remains down by 30.77 per cent since 2020. Shares last traded at C$0.18.
Larry Phillips, Compass Gold’s president and CEO, and a co-founder of IAMGOLD, one of the largest gold miners in the world, joined Lyndsay Malchuk to discuss upcoming production at the Sikasso property. Watch the interview here.
Geodrill
Our second mining stock pick this week is Geodrill, market capitalization C$155.12 million, a West African-based drilling company with leadership positions in Ghana and Cote d’Ivoire and growing presences in key markets including Egypt, Senegal, as well as Chile and Peru in South America.
The company meets the needs of a diversified client base of tier-1 junior, intermediate and senior miners – including Newmont, Barrick and Kinross – offering a service suite spanning exploration, delineation, underground and grade-control drilling.
Geodrill has grown its rig count from 67 in 2019 to 95 as of Q4 2024, delivering positive net income in each of the past six fiscal years, supporting overall 63 per cent revenue growth over the period driven primarily by long-term contracts.
With operations expanding across core and nascent regions and the company actively pursing new clients, specifically in high-momentum Egypt and South America, management is confident in continued revenue growth through 2027, which, if we are to rely on past results, will not come at the expense of profitability.
Geodrill stock (TSX:GEO) has added 77.51 per cent year-over-year and over 380 per cent since 2015, last trading at C$3.
Dave Harper, Geodrill’s CEO, spoke with Lyndsay Malchuk about the company’s record revenue and significant net income in 2024. Watch the interview here.
Join the discussion: Find out what everybody’s saying about these soaring mining stocks on the Compass Gold Corp. and Geodrill Limited Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Compass Gold Corp. and Geodrill Limited, please see full disclaimer here.
(Top image, generated by AI: Adobe Stock)
