Saturday , 15 June 2024

4 Mining Companies With Very Low Cost Structures Compared to Revenues

In the face of low commodity prices, investors should give more preference to miners with lean costiron-ore-mining structures…With that in mind…the 4 companies on our list today exhibit a low (below 5%) SG&A Expense as a % of Revenues ratio compared to the industry average of 30%.

The comments above and below are excerpts from an article from which has been edited ([ ]) and abridged (…) to provide a faster and easier read.

1. Imperial Metals Corp. (TSE:III) – $6.80
Diversified Mining

Imperial is an exploration, mine development and operating company based in Vancouver, British Columbia, with a focus on base and precious metals. The Company owns the Red Chris and Mount Polley mines in British Columbia, and holds a 50% interest in the Huckleberry mine and the Ruddock Creek property.

  • SG&A % of Revenue: 1.3%

2. HudBay Minerals Inc. (TSE:HBM) – $5.69
Diversified Mining

HudBay Minerals Inc. is a Canada-based mining company engaged in the production of copper concentrate, consisting of copper, gold, silver and zinc metal. The Company has assets in North and South America. Through its subsidiaries, it owns approximately four polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and a copper project in Arizona (the United States).

  • SG&A % of Revenue: 2.6%

3. IAMGOLD Corp. (TSE:IMG) – $5.05

IAMGOLD is engaged in the exploration, development and production of mineral resource properties across the world. The Company’s mining activities in Canada include Doyon Division with Westwood Mine in Quebec and Cote Gold Project development project in Ontario. Its mining activities in Africa include Burkina Faso- Essakane mine and Mali – Sadiola Mine, and in South America include Suriname – Rosebel Mine.

  • SG&A % of Revenue: 4.2%

4. Nevsun Resources Ltd. (TSE:NSU) – $3.90
Specialty Mining & Metals

The Company’s principal property is the Bisha Property, which hosts a gold, copper and zinc deposit, and includes satellite volcanogenic massive sulfides deposits at Harena, Northwest, Hambok, Aderat and Asheli. The Company’s principal mining operation is the Bisha Mine, which is located on the Bisha Property.

  • SG&A % of Revenue: 4.3%

Disclosure: The above article has been edited ([ ]) and abridged (…) by the editorial team at (Your Key to Making Money!) to provide a fast and easy read.
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