The Canadian base metals stocks on our list are trading at low EV to Cash Flow multiples (OCF)
SmallCapPower | October 30, 2017: Following the 8% rise in copper prices during October, we have identified three Canadian base metals stocks trading at low EV/OCF (NTM) multiples. The stocks covered have multiples ranging between 2.9x and 5.6x, compared to a peer average of 6.6x.
Dundee Precious Metals Inc. (TSX:DPM) – $2.38
Dundee Precious Metals Inc. is a Canada-based mining company with projects in five countries. The Company currently operates two mines: Chelopech and Tsumeb. The Chelopech mine is located in central western Bulgaria, roughly 70 kilometers west of the capital, Sofia. The deposit lies in the northern part of the Panagyurishte mining district, which hosts a number of copper porphyry deposits. The Company’s Tsumeb mine is located in Namibia, approximately 430 from the country’s capital, Windhoek. The Company plans to produce ~180,000 ounces of gold, and ~37 million lbs of copper during 2017.
- Market Cap: $426 Million
- Forward EV To Cash Flow (NTM): 2.93x
- Cash from Operating Activities (TTM): $158 Million
Trevali Mining Corp. (TSX:TV) – $1.42
Trevali Mining Corporation is a Canada-based zinc focused mining and exploration company with operations across the world. The Company has interests in four producing mines, which include the Santander, Perkoa, Rosh Pinah, and Caribou, which are located in Peru, Burkina Faso, Namibia and Canada, respectively. Additionally, the Company is developing the Halfmile mine, located in the Bathurst Mining Camp in New Brunswick.
- Market Cap: $1,173 Million
- Forward EV To Cash Flow (NTM): 3.72x
- Cash from Operating Activities (TTM): $68 Million
Nevsun Resources Ltd. (TSX:NSU) – $2.62
Diversified Mining & Metals
Nevsun Resources is a Canada-based company with operations in Eritrea and Serbia. Nevsun Resources has two core assets in its portfolio: the flagship Bisha mine and the under-development Timok project. The Bisha mine is a 60/40 venture with the Eritrean government, which the Company has operated for the last six years.
- Market Cap: $791 Million
- Forward EV to Cash Flow (NTM): 5.57x
- Cash from Operating Activities (TTM): $7 Million
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own units in any of the companies mentioned above.
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