TSX:LSG.DB - Post by User
Post by
minigoonon May 14, 2014 9:22am
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Post# 22559399
more great exposure
more great exposureThe Financial Post reports in its Wednesday, May 14, edition that since gold prices declined last year, the mantra among gold miners has been growing free cash flow. The Post's Peter Koven writes in the Trading Desk column that gold miners believe that is the key to winning back investors. With that in mind, analysts at TD Securities ranked the gold miners based on expected 2015 free cash-flow yield at an assumed gold price of $1,250 (U.S.) an ounce. Mr. Koven says it is an interesting list, as the firms at the top and bottom are an equal mix of small, medium and large producers. On this metric, no one class of companies appears to be in or out of favour. The most attractive FCF yield belongs to Lake Shore Gold at 19.4 per cent (after sustaining capital spending, but not total capital spending). That is followed by Kinross Gold (10.2 per cent), Timmins Gold (8.6 per cent) and New Gold (8.5 per cent). The bottom three are AuRico Gold (1.4 per cent), Franco-Nevada (4 per cent) and Goldcorp (4.1 per cent). After adjusting for total capital spending, the analysts found Lake Shore still looks the most attractive at 18.8-per-cent FCF yield. The worst yield belongs to Alamos Gold at negative 5.9 per cent