Investment Ideas: 8 Canadian Mining Stocks With Low P/CF
Sean Mason, SmallCapPower.com | Jun 15, 2014 04:21AM ET
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 eight Canadian mining stocks that have recorded low P/CF ratio in the last reported quarterly results. These stocks have P/CF ratio of less than 10, 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 Description:
Teranga Gold Corp (TO:TGZ)
Teranga Gold Corporation is a Canadian-based gold company. The company was created to acquire the Sabodala gold project (including the Sabodala gold mine) and certain exploration properties in south eastern Senegal.
Endeavour Mining Corp (TO:EDV)
Endeavour Mining Corporation is a gold mining company. The company engages in gold mine production, development and exploration activities in West Africa. Endeavour Mining operates mining projects located in Ghana, Mali, Burkina Faso, and Cote d'Ivoire.
Timmins Gold Corp (TO: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.
Luna Gold Corp (TO:LGC)
Luna Gold Corporation explores for gold in the United States and South America.
Dominion Diamond Corp (NYSE:DDC)
Dominion Diamond Corporation mines and markets rough diamonds. The company mines for rough diamonds in the Canada's Northwest Territories. Dominion also provides the sorting and selling of rough diamonds in Canada, Belgium and India.
Nevsun Resources Ltd (TO: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.
Get The News You Want
Kirkland Lake Gold Inc (TO:KGI)
Kirkland Lake Gold, Inc. is an operating gold mining company located in Ontario, Canada. The company owns the Macassa Mine and mill and several contiguous gold producing properties. Kirkland Lake is developing a lode gold deposit.
Fortuna Silver Mines Inc (TO:FVI)
Fortuna Silver Mines Inc. is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. The company's primary assets are the San Jose silver-gold mine in Mexico and the Caylloma silver-lead-zinc mine in Peru. Fortuna Silver Mines is selectively pursuing additional acquisition opportunities in the Americas.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.