In order to measure the good health (liquidity and solvency) of a company, how much cash has been generated by the company needs to be analysed. Price/cash flow (P/CF) ratio is a measure of the market’s expectations of a firm’s future financial health. The ratio is considered more reliable than the price/earnings (P/E) ratio to evaluate a company, as cash flow is not easily manipulated unlike earnings which could be easily manipulated through depreciation and other non-cash factors.
Ubika Research has shortlisted eleven Canadian mining stocks that have recorded low P/CF ratio and attractive capital expenditure growth in the last reported quarterly results. These stocks have P/CF ratio of less than 14, which is considered as an attractive investment from a valuation standpoint. During the past 1-month, these stocks have registered gains with average trading volume above 100,000. Most Analysts covering these stocks recommend a Buy and their 12-month price targets indicate significant upside potential from current levels.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
1-Month Average Volume |
1-Month Price Change |
Price to Cash Flow Ratio* |
CapEx Growth* |
Total Analyst Coverage |
Buy Rating |
Upside |
|
Caledonia Mining Corp |
TSX |
CAL |
41.7 |
0.80 |
252,846 |
14.3% |
1.79 |
57.5% |
2.00 |
100% |
155% |
|
Endeavour Mining Corp |
TSX |
EDV |
326.3 |
0.79 |
3,610,214 |
17.9% |
2.52 |
273.6% |
5.00 |
100% |
113% |
|
Banro Corp |
TSX |
BAA |
166.4 |
0.66 |
1,584,275 |
20.0% |
3.86 |
19.8% |
6.00 |
17% |
26% |
|
Timmins Gold Corp |
TSX |
TMM |
264.7 |
1.62 |
1,352,089 |
14.1% |
4.76 |
27.2% |
15.00 |
67% |
24% |
|
Primero Mining Corp |
TSX |
P |
783.5 |
6.77 |
1,087,986 |
8.1% |
6.91 |
58.1% |
14.00 |
79% |
17% |
|
Nevsun Resources Ltd |
TSX |
NSU |
843.1 |
4.23 |
1,088,348 |
3.4% |
7.84 |
128.4% |
13.00 |
77% |
28% |
|
Wesdome Gold Mines Ltd |
TSX |
WDO |
88.9 |
0.84 |
140,156 |
25.4% |
7.98 |
16.5% |
3.00 |
33% |
49% |
|
Dundee Precious Metals Inc |
TSX |
DPM |
764.1 |
5.49 |
787,401 |
37.6% |
8.47 |
82.0% |
7.00 |
71% |
48% |
|
First Majestic Silver Corp |
TSX |
FR |
1,428.4 |
12.18 |
835,686 |
4.7% |
8.83 |
20.15% |
11.00 |
64% |
20% |
|
B2Gold Corp |
TSX |
BTO |
2,138.8 |
3.17 |
7,490,162 |
20.5% |
9.52 |
213.6% |
17.00 |
94% |
16% |
|
Argonaut Gold Inc |
TSX |
AR |
889.3 |
5.77 |
1,809,810 |
14.9% |
13.17 |
193.8% |
11.00 |
64% |
23% |
Source: Bloomberg
*P/CF Ratio and Capex Growth are of latest reported quarters
Company Description:
Caledonia Mining Corp (TSX: CAL)
Caledonia Mining Corporation operates a mineral exploration and development company. The company explores and develops gold and base metal mines, primarily cobalt. Caledonia Mining owns and operates mines located in Zambia.
Endeavour Mining Corp (TSX: EDV)
Endeavour Mining Corp. is a growth focused West African gold producer. The company’s operations include three operating mines in Ghana, Mali, and Burkina Faso, and a fourth mine in Cote d’Ivoire that is currently in construction. Endeavour also has a large West African land position with active exploration programs.
Banro Corp (TSX: BAA)
Banro Corporation, through its subsidiary, explores and develops gold properties. The company currently holds mining permits and mining concessions in the Democratic Republic of Congo in Africa.
Timmins Gold Corp (TSX: TMM)
Timmins Gold Corporation operates as a gold exploration and production company. The company owns and operates a Mexican based mine where they develop, explore and produce gold.
Primero Mining Corp (TSX: P)
Primero Mining Corporation is a gold and silver producer. The company focuses on building a precious metals portfolio in the Americas.
Nevsun Resources Ltd (TSX: NSU)
Nevsun Resources Ltd. is the operator of the Bisha Mine which began construction in 2008 and commercial production in 2011. The mine produced gold-silver dore until 2013 when the product switched to copper in concentrate and will expand to also produce Zinc concentrates.
Wesdome Gold Mines Ltd (TSX: WDO)
Wesdome Gold Mines Ltd. is a gold mining and exploration company. The company operates the Eagle River mine, Mishi mine and the River Gold mill. Other properties owned by Wesdome include the Kiena Mine, Shawkey and Wesdome.
Dundee Precious Metals Inc (TSX: DPM)
Dundee Precious Metals Inc. acquires, explores, and develops gold mining properties. The company owns interests in mineral properties in Armenia, Bulgaria, Canada, and Serbia.
First Majestic Silver Corp (TSX: FR)
First Majestic Silver Corp. is a silver producing mining company. The company’s presently owns and operates producing silver mines in Mexico; the La Parrilla Silver Mine, the San Martin Silver Mine, the La Encantada Silver Mine, the La Guitarra Silver Mine, and Del Toro Silver Mine.
B2Gold Corp (TSX: BTO)
B2Gold Corporation is a gold exploration and production company. The company is a Vancouver based gold producer with mines in Nicaragua and a portfolio of development and exploration assets in Nicaragua, Colombia and Uruguay.
Argonaut Gold Inc (TSX: AR)
Argonaut Gold, Inc. explores for gold. The company owns the operating El Castillo mine, the San Antonio development stage project and advanced stage exploration properties including: La Fortuna and La Colorada.
