Resource-related equities comprise almost 30% of the Canadian public markets, yet most have been suffering from lower metals prices. In turn, it’s the companies that are limiting capital expenditures and finding ways to cut costs, some of which are even seeing positive cash flow. Valuation wise, Price/Free Cash Flow is an industry valuation multiple that can paint a vivid picture of the price of a stock. In a sector of highly negative multiples, the companies on our list are trading below 4.0x Free Cash Flow.
Orvana Minerals Corp. (TSX: ORV) – $0.185
Gold
Orvana Minerals Corp. is a Canada-based multi-mine gold-copper producer. The Company operations consist of the El Valle-Boinas/Carles gold-copper mines and the copper-gold-silver Don Mario Mine. El Valle-Boinas Mine and Carles Mine are two underground gold-copper-silver mines located in the northern part of Spain and Upper Mineralized Zone at the Don Mario Mine is an open-pit gold-copper-silver mine located in the southeastern part of Bolivia.
- Market Cap: $27,043,259
- P/FCF: 1.19x
- Free Cash Flow: $22,689,814
- Revenue (LTM): $172,671,710
Thompson Creek Metals Company Inc. (TSX: TCM) – $0.66
Diversified Mining
Thompson Creek Metals Company Inc. (TCM) is a mining company engaged in the full mining cycle, which includes acquisition, exploration, development, and operation of mineral properties. The Company’s Copper-Gold operations consist of Mount Milligan Mine, a conventional truck-shovel open-pit copper and gold mine and concentrator in British Columbia.
- Market Cap: $150,438,598
- P/FCF: 1.26x
- Free Cash Flow: $119,316,860
- Revenue (LTM): $775,448,790
Aura Minerals Inc. (TSX: ORA) – $0.085
Gold
Aura Minerals Inc. (Aura Minerals) is a Canada-based gold?copper production company focused on the operation and development of gold and copper projects in the Americas. Its assets include The San Andres Gold Mine (San Andres), The Sao Francisco Gold Mine (Sao Francisco), The Aranzazu Copper Mine (Aranzazu), and The Serrote da Laje Project (Serrote).
- Market Cap: $28,259,436
- P/FCF: 1.77x
- Free Cash Flow: $15,966,617
- Revenue (LTM): $263,150,195
Capstone Mining Corp. (TSX: CS) – $0.73
Diversified Mining
Capstone Mining Corp. is a Canadian mining company engaged in the exploration and production of base and precious metals in United States, Mexico, Canada, Chile and Australia. The Company operates through five segments, which include Pinto Valley (United States), Cozamin (Mexico), and Minto (Canada), Santo Domingo development project (Chile) and Other. Pinto Valley Mining Corp., a wholly owned United States subsidiary, owns and operates the copper Pinto Valley Mine located in Arizona.
- Market Cap: $291,144,680
- P/FCF: 2.61x
- Free Cash Flow: $111,339,941
- Revenue (LTM): $639,121,962
Banro Corp. (TSX: BAA) – $0.27
Gold
Banro Corporation (Banro) is a gold mining company that holds a 100% interest in its four gold properties (Twangiza, Namoya, Lugushwa and Kamituga) through four Democratic Republic of the Congo (DRC) subsidiaries. 14 exploration permits covering an aggregate of 2,638 square kilometers, including 10 of which are located in the vicinity of its Twangiza property and four are located in the vicinity of the Namoya property.
- Market Cap: $78,609,559
- P/FCF: 3.95x
- Free Cash Flow: $19,885,369
- Revenue (LTM): $158,455,910
