The Globe and Mail attempts to identify Canadian precious metals and
other mining companies positioned
to leverage a weakening
Canadian dollar in its Wednesday, Jan. 13, edition. The Globe's guest columnist Khaled Eniba writes in the Number Cruncher column that while the S&P/TSX composite
index suffered its worst start to the year
since 1998, bullish sentiment
toward gold drove the S&P/TSX
precious metals index toward a
5.1-per-cent gain in its first week
of January.
Mr. Eniba looked for potentially undervalued
companies within the
sector with strong balance
sheets, high operating margins
and upward price momentum. He looked for companies experiencing a positive trend reversal. He looked for low price-to-book values. A lower figure could
mean the stock is undervalued.
Mr. Eniba also searched for an EBITDA margin greater than
20 per cent. As well, he looked for companies with a good ability to service their debt obligations. Gold stocks that appear to be regaining their shine are Lucara Diamond, Primero Mining, Lake Shore Gold, Endeavour Mining and Richmont Mines.
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