The Canada-listed copper mining stocks on our list have discounted price/cash flow multiples
SmallCapPower | February 23, 2018: Copper prices have increased 20% year-over-year, but dipped from US$3.20 to US$3.07 in late January, before recovering to previous levels. The Canada-listed copper mining stocks on our list today have an average YTD decline of 12%, underperforming the TSXV, which fell 3% over the same period. They also have attractive forward price/cash flow multiples, averaging a discount 2.8x while their peers average 8.3x.
Copper Mountain Mining Corp. (TSX:CMMC) – $1.28
Copper
Copper Mountain Mining operates the Copper Mountain Mine, a conventional open pit, truck and shovel operation with an estimated mine life of 16 years. The Company holds a 75% interest in the Copper Mountain mine, as part of a JV with Mitsubishi Materials Corporation (25%). CMMC is guided to produces 80 million lbs of copper, 25,000-30,000 oz of gold, and 275,000-325,000 oz of silver in 2018.
- Market Cap: $169.5 Million
- YTD Total Return: -16.3%
- Price to Cash Flow Per Share: 3.0x
- Forward Price to Cash Flow Per Share FY2018: 2.4x
Atico Mining Corp. (TSXV:ATY) – $0.69
Copper
Atico Mining is a Canada-based copper-gold producer operating in Latin America. The Company’s El Roble mine in Columbia is located 3.5 hours from Medellin and produced 20.6M lbs Cu and 11,000 oz. gold in 2017. The site hosts reserves of 1,865Mt at 3.5% Cu, 2.3 g/t Au, and 8.9 g/t Ag.
- Market Cap: $69.8 Million
- YTD Total Return: -8.0%
- Price to Cash Flow Per Share: 3.9x
- Forward Price to Cash Flow Per Share FY2018: 2.9x
Capstone Mining Corp. (TSX:CS) – $1.44
Copper
Capstone Mining is a Canada-based producer with three copper mines. The Company’s assets include Pinto Valley in the U.S., Cozamin in Mexico and Minto in Canada. In addition, Capstone has two projects under development: Santo Domingo in Chile and Kitcho in Canada. The Company’s flagship Pinto Valley mine comprises an open-pit project, located 125 kilometers east of Phoenix in Arizona, U.S.
- Market Cap: $573.6 Million
- YTD Total Return: 0.0%
- Price to Cash Flow Per Share: 4.0x
- Forward Price to Cash Flow Per Share FY2018: 3.0x
Taseko Mines Ltd. (TSX:TKO) – $2.27
Copper
Taseko Mines Limited is a mining company operating in Canada and the U.S. The Company’s flagship asset is the Gibraltar Mine, which is an open pit copper-molybdenum mine located in south-central British Columbia. The mine is expected to produce 140 million lbs of copper and 2.5 million of molybdenum in 2017. The Company also owns the New Prosperity gold-copper, Aley niobium, Florence copper and Harmony gold projects.
- Market Cap: $496.6 Million
- YTD Total Return: -22.8%
- Price to Cash Flow Per Share: 2.2x
- Forward Price to Cash Flow Per Share FY2018: 3.0x
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.
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