Everything seems to move in the right direction for this company looking at the past 3 quarters : - production keeps increasing : + 22 % qoq in q4 20 and + 4.5 % qoq in q1 21, - all in cost : - 6 % qoq in q1 21 after + 8 % qoq in q4 20, - average realized copper price : + 13 % qoq in q4 20 and + 16 % qoq in q1 21 (average was 3.90 $ vs AIC of 1.71 $).
As a result, earnings* show a significant improvement with an EPS of 0.18 $ (0.17 $ diluted) for Q1 21 vs 0.10 $ for Q4 20. Cash flow from operation was also strong at 79.6 m in q1 21 vs 50.9 m in Q4 20 and 38.6 m in q3 20. The company has decreased its net debt by more than 100 m during the last 2 quarters and has only 65 m of net debt remaining vs a free cash flow of 56 m during the last quarter.
Overall, the stock does not look expensive with a PE of 5.9 (if we annualise their last quarterly results). They also have a free cash flow yield of around 17 % based on their last quarterly results (after excluding minority interests).
* reminder : the company reports in CAD.
C6C Price at posting:
$4.02 Sentiment: Buy Disclosure: Held
