It’s no secret that many commodities have realized sharp declines over the past year, with copper down 21%, iron falling 33%, and silver slipping 17%. This depressed environment, however, is creating a lot of opportunity for value investors, with certain companies trading under 1.0x revenue. The stocks on our list today also have positive operating income and are most likely oversold.
Dominion Diamond Corp. (TSX: DDC) – $14.44
Metals & Minerals
Dominion Diamond Corporation is focused on the mining and marketing of rough diamonds to the global market. The Company has ownership interests in the Diavik and the Ekati group of mineral claims. The Diavik Joint Venture is an unincorporated joint arrangement between Diavik Diamond Mines (2012) Inc. (DDMI) and Dominion Diamond Diavik Limited Partnership (DDDLP), where DDDLP holds an undivided 40% ownership interest in the assets, liabilities and expenses of the Diavik Diamond Mine. DDMI is the operator of the Diavik Diamond Mine.
- Market Cap: $1,219,462,628
- EV/Revenue: 0.9x
- EV/Operating Income: 5.9x
- Debt (LFQ): $58,688,093
>> Read More: 3 REITs That Could Cool as Canada’s Housing Market Overheats
Century Aluminum Co (NASDAQ: CENX) – $5.81
Aluminum
Century Aluminum Company (Century) is a holding company engaged in the production of primary aluminum and operation of aluminum reduction facilities, or smelters, in the United States and Iceland. The Company operates three United States aluminum smelters, in Hawesville, Kentucky (Hawesville), Robards, Kentucky (Sebree) and Mt. Holly, South Carolina (Mt. Holly), and one smelter in Grundartangi, Iceland (Grundartangi). Century Aluminum produces several primary products at its facilities, which include billet, foundry, slab and sow. The Company’s annual primary aluminum production capacity is approximately 1,166,000 tons per year (tpy).
- Market Cap: $655,690,625
- EV/Revenue: 0.3x
- EV/Operating Income: 3.8x
- Debt (LFQ): $318,388,095
Newmarket Gold Inc. (TSXV: NMI) -$1.32
Gold
Newmarket Gold (previously Crocodile Gold Corp.) is a Canadian-listed gold mining and exploration company with three 100% owned operating mines in Australia: the Fosterville and Stawell Gold Mines in the state of Victoria and the Cosmo Gold Mine in the Northern Territory. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating free cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy.
- Market Cap: $164,170,718
- EV/Revenue: 0.4x
- EV/Operating Income: 2.2x
- Debt (LFQ): $33,216,205
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Russel Metals Inc. (TSX: RUS) -$22.51
Iron & Steel
Russel Metals Inc. is a metals distribution company that operates through segments that include metals service centers, energy products, and steel distributors. The Company’s metals service centers provide a line of products in a range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel and aluminum. Its energy products distributes oil country tubular goods (OCTG), line pipe, tubes, valves and fittings to the energy industry in Western Canada and the United States. Russel Metals’ steel distributors provide as the master distributors selling steel in large volumes to other steel service centers and equipment manufacturers.
- Market Cap: $1,366,074,044
- EV/Revenue: 0.5x
- EV/Operating Income: 10.5x
- Debt (LFQ): $488,100,000
