RE:RE:RE:“I was Pleasantly Surprised to find a Modern Mine that has VANCOUVER, BC / ACCESSWIRE / October 5, 2015 / With almost $600 million in the bank, NSU has cash to back 80% of its share price. And it pays a dividend. And it's expanding its profitable mine. Investors are taking note: Nevsun has outperformed the S&P/TSX Capped Diversified Metals & Mining Index by 40% since June.
The big resource picture is still unclear. No one knows what will turn mining around or when it will happen.
With so much uncertainty, it is easy to hesitate. Why buy now?
That rationale makes sense - for most mining stocks. But a select few offer reason to act now.
The company I am thinking of has almost $600 million in the bank. That treasury backs up 80% of their market cap. Think about that: the company has 80¢ in the bank backing each dollar invested.
The other 20¢ acknowledges the company's asset: an operating mine producing 150 million lbs. copper annually that reliably generates millions of dollars of net profits every quarter (that's where the near-$600 million came from) and where a nearly complete expansion is set to transition the mine to zinc over the coming years, just as a global zinc deficit is expected to hit.
Oh, and you get paid to own the stock. A dividend yield of 5.6% makes the company one of the top yielding dividend stocks amongst all resource players.
The company is Nevsun Resources(NSU.TO). The mine is Bisha, one of the best performing mines in the world.
Nevsun's strengths are showing during these recent days of resource chaos. Base metal prices have been falling: zinc is down 40% in five month, lead is down 23% in the same time, and copper had lost 22% before regaining some ground in September.