http://seekingalpha.com/article/4013958-nevsun-resources-continues-strong-income-generating-mining-company
Nevsun Resources Continues To Be A Strong Income-Generating Mining Company
Oct.21.16 | About: Nevsun Resources (NSU)
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Summary
Nevsun Resources' stock price is down by more than 20% from the
company's April 2016 highs.
The company recently acquired the Timok Project, broken into two
zones, with the Upper Zone alone expected to generate $1.5 billion in
profit.
Given Nevsun Resources' cash flow potential, dividend yield of more
than 5%, and recently acquired growth prospects, we conclude the
company is strongly undervalued.
Introduction
Nevsun Resources (NYSEMKT: NSU) is a Canadian mid-tier copper
producing company headquartered in Vancouver, British Columbia. The
company was initially founded in 1965 but currently only has one
operating mine in Eritrea, Africa. The company also recently acquired
the Timok Project in Serbia for several hundred million. Together from
these assets, the company has significant growth potential along with
strong income production capabilities.
Click to enlarge
Nevsun Resources Overview - Nevsun Resources
Despite these potential and assets, Nevsun Resources has had a
difficult time recently. The company watched its stock price peak in
April 2016 at more than $3.7 per share. From there, the company's
stock price dropped to just over $2.7 per share in early October 2016,
a drop of more than 25%. Recently, the company announced some strong
drilling results giving a boost to its stock price. The company
continues to offer a dividend yield of more than 5%. Because of all
this, at a price of less than $3 per share, Nevsun Resources is
strongly undervalued.
Nevsun Resources Overview
Received on Sun Oct 23 2016 - 10:46:55 EDT