Thursday , 19 April 2018


3 Junior Mining Stocks With Strong Free Cash Flow Yields

Today we have identified 3 junior mining stocks that have high Free Cash Flow yields making them undervalued relative to their peers.

The original article by SmallCapPower.com has been edited here for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read.

FCF yield is derived from free cash flow per share divided by the current price per share. Unlike regular cash flow, it includes funds used in investing, allowing for a more accurate view of what a company’s real profit margins look like.

 

 

 

1. Copper Mountain Mining Corp. (TSX:CMMC)
Copper

Copper Mountain Mining Corporation (CMMC) is a Canada-based, copper-gold-silver producer focused in British Columbia…It operates a conventional open pit, truck and shovel operation with an estimated mine life of 16 years…andis guided to produces 80 million lbs. of copper, 25-30,000 ozt. of gold, and 275-325,000 ozt. of silver in 2018.

  • Market Cap: $189.4 Million
  • Free Cash Flow: $94,589,000
  • Price to Free Cash Flow: 2.0x
  • Free Cash Flow Yield (LTM): 31.7%
  • Free Cash Flow Yield FY2018: 39.3%
  • Peer Average Free Cash Flow Yield FY2018: 3.3%

 

 

 

2. Taseko Mines Ltd. (TSX:TKO)
Copper

Taseko Mines Limited is a mining company operating in Canada and the U.S….It operates 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 lbs. of molybdenum in 2018. The Company also owns the New Prosperity gold-copper, Aley niobium, Florence copper and Harmony gold projects.

  • Market Cap: $540.7 Million
  • Free Cash Flow: $12,062,000
  • Price to Free Cash Flow: 44.8x
  • Free Cash Flow Yield (LTM): 28.0%
  • Free Cash Flow Yield FY2018: 12.8%
  • Peer Average Free Cash Flow Yield FY2018: 3.3%

 

 

 

3. Premier Gold Mines Ltd. (TSX:PG)
Gold

Premier Gold Mines Limited (Premier) is a Canada-based gold producer focused on exploring for, and developing, gold deposits within North America. Premier holds an interest in the Trans-Canada Property (Hardrock Project & Brookbank Project), located in northern Ontario, Canada, approximately 200 kilometers northeast of Thunder Bay, and the McCoy-Cove Project in Lander County, Nevada, and the South Arturo Mine, in Elko County, Nevada. The Company is expecting to produce between 85-95,000 troy ounces of gold and 300-325,000 troy ounces of silver in 2018.

  • Market Cap: $734.3 Million
  • Free Cash Flow: $155,569,410
  • Price to Free Cash Flow: 4.7x
  • Free Cash Flow Yield (LTM): 21.1%
  • Free Cash Flow Yield FY2018: -17.1%
  • Peer Average Free Cash Flow Yield FY2018: 3.3%

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