The Canada-listed China stocks on our list conduct all their operations in China
SmallCapPower | March 26, 2018: On Thursday, the Trump administration announced plans for $50 billion in additional tariffs on China, to be determined by trade officials within two weeks. On the same day, China announced tariffs on 128 U.S. products, in retaliation to the U.S. steel tariffs. Fears of a trade war between the two largest global economies sent the Dow Jones Industrial Index tumbling approximately 700 points on Thursday, with the TSX dropping 275 points as well. The Canada-listed China stocks on our list today operate in China and could suffer side effects should the trade war heat up.
China Gold International Resources Corp Ltd. (TSX:CGG) – $2.76
China Gold is a gold/copper producer operating in China. The Company operates two mines, the CSH gold mine and the Jiama gold/copper mine, guided to produce 160,000 oz Au and 100M lbs Cu in 2018. China Gold aims to upgrade processing capacity at Jiama and repair wall failures in CSH to increase production.
- Market Cap: $1,097.2 Million
- 1 Week Total Return: -3.2%
- 3 Month Total Return: 26.6%
- Price to Cash Flow Per Share LTM: 9.5
Silvercorp Metals Inc. (TSX:SVM) – $3.47
Non-Gold Precious Metals & Minerals
Silvercorp Metals is a Canada-based miner focused primarily on silver assets in China. The Company operates a series of silver/lead/zinc mines, largely concentrated in the Ying mining district in Henan. The Company sold 6.5M oz Ag, 70.5M lbs Pb, and 18.3M lbs Zn in 2017. Silvercorp also aims to restart production at its BYP gold mine.
- Market Cap: $583.6 Million
- 1 Week Total Return: 4.2%
- 3 Month Total Return: 0.9%
- Price to Cash Flow Per Share LTM: 6.4
Changfeng Energy Inc. (TSXV:CFY) – $1.06
Natural Gas Utilities
Changfeng Energy is a natural gas and sustainable energy utility operating in China. The Company sells natural gas to residential and commercial customers in the Xiangdong and Sanya regions, both through conventional pipelines and through CNG refueling stations. Changfeng aims to transition to sustainable energy sources and has established a joint venture with EDF Holdings to develop an integrated smart energy program in Sanya.
- Market Cap: $69.5 Million
- 1 Week Total Return: -3.6%
- 3 Month Total Return: 76.0%
- Price to Cash Flow Per Share LTM: 3.8
Majestic Gold Corp. (TSXV:MJS) – $0.05
Majestic Gold is a Canada-based gold producer operating in China. The Company’s flagship asset, the Songjiagou gold mine, produces 25% of China’s gold production. The mine hosts reserves of 1.2M oz Au grading 1.4 g/t. The Company produced 25,000 oz Au in 2017, at an all-in sustaining cost of $850/oz.
- Market Cap: $48.7 Million
- 1 Week Total Return: 0.0%
- 3 Month Total Return: 0.0%
- Price to Cash Flow Per Share LTM: 4.5
Minco Silver Corp. (TSX:MSV) – $0.62
Non-Gold Precious Metals & Minerals
Minco Silver is a Canada-based precious metals developer operating in China. The Company’s primary asset is the Fuwan Silver project, located 45km southwest of Guangzhou. The site hosts reserves of 9.1Mt grading 0.2 g/t Ag, 0.2% Pb, and 0.6% Zn. The Company aims to complete permitting and begin construction. Minco also owns 51% of Changkeng Gold, located just north of Fuwan, which hosts 1.4M oz Ag and 1.2M oz Au.
- Market Cap: $37.6 Million
- 1 Week Total Return: -4.6%
- 3 Month Total Return: -27.1%
- Price to Cash Flow Per Share LTM: N/A
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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