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Top TSX Copper Stocks For September

As the economy begins to reopen after countless lockdowns and mine closures, the copper mining industry is poised to soar. In the coming future, experts…

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This article was originally published by Mining Feed

As the economy begins to reopen after countless lockdowns and mine closures, the copper mining industry is poised to soar. In the coming future, experts project that the price of copper will continue to rise due to limited supply and rising demand. Copper is a key raw material for the production of high-tech products which are only becoming more and more valuable as technology advances.

With the price of copper projected to rise, many investors likely want to get in on the action and perhaps earn huge dividends in the coming years. However, it can be difficult to tell which copper mining stocks to purchase since there are many factors to consider. Current market price and price growth rate are too good indicators, but another valuable method of judging the viability of a stock investment is its price-to-earnings (P/E) ratio.

Put simply, a P/E ratio is the stock’s current share price divided by its earnings per share (EPS) over the course of a year. For example, let us say your stock is $60 per share and your EPS is $3. This would give you a P/E ratio of 20. This means that the investor will pay $20 per $3 in earnings.

As with other stocks, some of the best copper investments you can make will be based off of a low P/E ratio. A low P/E ratio means that you will pay less money for each profit earned.

Here are some options for the three best copper companies to invest in for the September of 2021.

Turquoise Hill Resource Limited (TSX:TRQ)

Turquoise Hill Resources is a Canadian mining company that explores and develops copper and gold mines across Asia and Australia. Currently, its primary source of profit is the You copper-gold mine in Southern Mongolia. As of the first quarter of 2021, the net income attributable to the company owners went up by 423.9%.

The company’s current stock price is about $19, and its current P/E ratio is 5.2, the lowest copper stock P/E ratio this quarter.

Copper Mountain Mining Corporation (TSX:CMMC)

The Copper Mountain Mining Corp is a domestically owned mining company with a focus on copper mining in southern British Columbia. The company released its financial results in late April and recorded a net income of CAD$52.1 million, a leg up from the net loss of CA43.5 million reported a year ago. The 227.3% rise in revenue is massive, and according to sources is projected to rise.

Its P/E ratio is 7.3 which is slightly higher than Turquoise Hill, but the stock price is only about $3.25 per share.

Capstone Mining Corp (TSX:CS)

Capstone is a more diversified mining company than the other two, mining a variety of different minerals like gold, zinc, iron, lead, as well as copper. The company currently has operations on a global scale, with mining projects across the United States, Chile, and Mexico. Capstone released its financial results last April for the first quarter of 2021 and reported a net income of $127 million.

Capstone’s P/E ratio is one of the highest on the list, but the stock is only sitting around $5.60 and is one of the most profitable mining companies at the moment. It also still remains the 3rd lowest P/E ratio available.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

 

The post Top Copper Stocks September 2021 appeared first on MiningFeeds.

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Author: Matthew Evanoff

Base Metals

Lithium Market Jumps on Policies of Newly Elected Chilean Leader That Could Ultimately Cut Production Levels

The mid-December 2021 electoral victory of Gabriel Boric, a 35-year-old leftist candidate and former student protest leader, to Chile’s presidency
The…

The mid-December 2021 electoral victory of Gabriel Boric, a 35-year-old leftist candidate and former student protest leader, to Chile’s presidency seems to be boosting an already buoyant market for lithium. Lithium is a key component of the cathode in most electric vehicle (EV) batteries, and demand is expected to grow almost geometrically over the foreseeable future.

Chile produces more than 20% of the world’s lithium and contains just over half of the globe’s reserves. Most of these reserves are found in brine that flows beneath the country’s remote Atacama Desert.

Worldwide lithium mine production in 2020, in tonnes. Source: Statista.

Mr. Boric, who takes office on March 11, 2022, campaigned on a platform of overhauling the country’s market-oriented economic system. He also promised to expand the country’s social net, including narrowing the nation’s wide income gap between the rich and poor, and to implement pro-environment and pro-climate measures. This last issue tapped into many Chileans’ concerns about the social and environmental risks of lithium extraction.

To date, Chile’s incoming leader has not discussed his specific plans for the lithium industry, except to make what sounds like a scary, possibly supply-disrupting proposal: the potential creation of a national lithium company.  Currently, two companies, Albemarle Corporation (NYSE: ALB) and Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM), produce lithium under contracts with the government.

There is a precedent for such a nationalization in Chile. Codelco, a state-owned copper mining company, was formed in 1976 from foreign-owned copper companies that were nationalized in 1971. The nationalization plan was implemented by Marxist ex-president Salvador Allende. Codelco is the largest copper-producing company in the world.

Hints of an impending less friendly climate toward lithium extraction are already evident. On January 4, 2022, a group of left-of-center lawmakers filed an objection with a Santiago appeals court to a bid request put forth by the current administration to expand lithium production in the country. Winning bidders would receive 20+ year lithium extraction contracts. On January 7, the court rejected the lawmakers’ objections, saying the time allowed for appealing the bid process had expired.

In addition, on January 5, a centrist Chilean party introduced a bill in Chile’s legislature that would prevent a sitting president from soliciting new mining contract bids in the final 90 days of his/her term. As noted above, President Pinera’s term expires March 10, 2022.  

Lithium markets seem well aware of future potential production issues in the rich production region of Chile. Lithium prices, already up 160% since the end of July 2021 based on future EV-based lithium demand, have soared more than 25% since just the December 19, 2021 election of the new Chilean president and show no signs of slowing.

Lithium carbonate price, in Chinese yuan per tonne. Source: Trading Economics.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Lithium Market Jumps on Policies of Newly Elected Chilean Leader That Could Ultimately Cut Production Levels appeared first on the deep dive.

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Author: Jim McFadden

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Precious Metals

BMO Reiterates Ratings On Osisko Gold Royalties After Preliminary Results

On January 10th, Osisko Gold Royalties (TSX: OR) reported its preliminary fourth-quarter deliveries and portfolio update. Osisko received 19,830 gold
The…

On January 10th, Osisko Gold Royalties (TSX: OR) reported its preliminary fourth-quarter deliveries and portfolio update. Osisko received 19,830 gold equivalent ounces for a total of 80,000 equivalent ounces in 2021. This is at the higher end of their 78,000 – 82,000 guidance. The company says that preliminary revenue for the fourth quarter is C$50.7 million and cost of sales came in at C$3.7 million.

Osisko Gold currently has 13 analysts covering the stock with an average 12-month price target of C$22.88 or a 51% upside to the current stock price. Out of the 13 analysts, 4 have strong buy ratings, 8 have buy ratings and 1 analyst has a hold rating on the stock. The street high sits at C$27, representing 78% upside, coming from Haywood Securities. While the lowest price target sits at C$19, representing a 26% upside to the current stock price.

In BMO Capital Markets’ note, they reiterate their C$20 12-month price target and market perform rating saying that the preliminary results were consistent with consensus expectations.

On the results, BMO says that all the results came in line with consensus expectations. The consensus estimates were 19,700 equivalent ounces, C$53.3 million in revenue, and C$4.2 million in cost of sales.

BMO says that in the news release, the company outlined a number of expected 2022 catalysts which include further expansion to Mantos Blancos, ‘imminent production’ at Santana, Ermitaño, and advancing Tocantinzinho under new ownership.

BMO says that they have not updated their estimates for the companies outlook and keep their estimates tied to their models of the mine operators under their coverage so there is a potential upside to their price target.

Below you can see BMO’s updated fourth quarter, full year 2021, and 2022 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post BMO Reiterates Ratings On Osisko Gold Royalties After Preliminary Results appeared first on the deep dive.


Author: Justin Young

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Precious Metals

Lundin Gold Sees BMO Reiterate $14 Price Target After Production Beat

On January 10th, Lundin Gold Inc. (TSX: LUG) announced its 2021 full-year production results. The company announced that it produced
The post Lundin Gold…

On January 10th, Lundin Gold Inc. (TSX: LUG) announced its 2021 full-year production results. The company announced that it produced 428,514 ounces of gold, beating their own high range of guidance, which was 420,000 ounces. The breakdown was 289,499 ounces of concentrate and 139,015 ounces of Doré. The company processed 1,415,634 tonnes this year with an average throughput of 4,121 tonnes per day and a recovery rate of 88.6%.

Lundin Gold currently has 9 analysts covering the stock with an average 12-month price target of C$13.69, or a 36% upside to the current stock price. Out of the 9 analysts, 8 have buy ratings and 1 analyst has a hold rating. The street high sits at C$15.50, or a 54% upside from Stifel-GMP. While the lowest 12-month price target is C$11.75.

In BMO Capital Markets’ note, they reiterated their C$14.00 12-month price target and Outperform rating on Lundin Gold, saying that the company had strong fourth-quarter production.

For the fourth quarter Lundin Gold produced 107,900 ounces, beating BMO’s 104,600 ounces, and they note that the companies throughput and recovery rates have been steadily increasing each quarter in 2021.

Though the full year beat was unexpected by many, BMO believes that this was expected due to the strong production at Fruta del Norte with their throughput increasing 4,200 tonnes per day. Additionally, they expect Lundin Gold to come in at their own guidance for all-in sustaining costs.

Lastly, BMO believes that Fruta del Norte has started to accumulate high-grade stockpiles, which has only started in the last quarter or two. They believe that the building “of modest stockpiles as a positive for the mining operation.”

Below you can see BMO’s updated fourth quarter, 2021, and 2022 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Lundin Gold Sees BMO Reiterate $14 Price Target After Production Beat appeared first on the deep dive.



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Author: Justin Young

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