I have selected the following 2 companies as the best risk/reward gold producers at the present time. Their stocks should outperform the price of gold significantly – if gold rises. In fact, I expect these stocks to double in value if gold reaches $2,500.

[Both] these stocks have high leverage versus the gold price, so they also have high risk. In fact, I would say that they are both currently underperforming. If gold prices drop, they will likely fall hard…

Below is an analysis from…[my] website…for each stock on the list….

Argonaut Gold (AR:TSE)

Argonaut Gold is a solid mid-tier producer. There is a lot to like about this company…Anyone who analyzes gold mining stocks has to be impressed with this stock. They have executed like pros.

• They now have 8 million oz. of M&I and excellent exploration potential.
• The only question to ask is how big is this company going to get. My guess is that they will continue to buy projects and build mines.
• With an FD market cap of $333 million, the upside potential is significant. My only concern is that they get taken out by a larger company, or perhaps have troubles in Mexico.
• The biggest issue is they don’t have a lot of cash…plus, they tend to grow slowly from their conservative approach…
•  [Assuming] they will reach 300,000 oz. of annual production, all-in costs will be $1,100 per oz., and future gold prices will reach $2,500, its potential future market cap growth rate is 800% and, with such a potential increase, it is highly undervalued.
• [For more specific details please refer to the original article here.]

…Is this a good entry point? Yes, with their future reserves currently valued at $27 per oz., they are very cheap, although, you may want to be patient and wait for a better entry price…

Teranga Gold (TGZ:TSE)

Teranga Gold is a mid-tier producer in West Africa (Senegal).

• Their Sabodala project is a large (4.4 million oz.) open pit project.
• Cash costs are projected to be around $650 per oz. in 2018, with all-in costs around $1,000 per oz.
• They are currently building their second mine (Wahgnion), which is a 2.4 million oz. open pit project with low-cash costs.
• Their production should increase over of the next few years from 230,000 oz. in 2018 to 350,000 oz. in 2020.
• Currently, their FD market cap is $353 million, so they are super cheap.
• [Assuming] they will reach annual production of $350,000 oz., all-in costs will be $1,100 per oz., and future gold prices will reach $2,500, its potential future market cap growth rate is 700% and, with such a potential increase, it is highly undervalued.
• The key for them is going to be production growth beyond 350,000 oz.
• If gold prices rise, they should have enough cash flow to acquire another company.
• The only red flag for them is the locations of their mines in West Africa.
• [For more specific details please refer to the original article here.]

…Is this a good entry point? Yes, [this is a]potential high return stock, although it would be nice to buy it at $250 million. You may want to be patient and wait for a better entry price…