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(Source: TC2000.com)
Hecla Mining, SSR Mining, and Newmont all offer differing exposure to the metals space. One is a silver producer, the second is a silver & gold producer, and the latter is the largest gold producer in the world. However, they all share one key trait, industry-leading margins with some of the best cost profiles in the sector. In Newmont’s case, the company has recently seen inflationary pressures but continues to benefit from silver/copper by-products which are pulling its costs down. In Hecla’s case, the company is one of the highest-grade silver producers globally and the only large-scale silver producer operating out of solely Tier-1 jurisdictions. Finally, SSR Mining has recently beefed up its production profile, merging with Alacer Gold to create a diversified global producer with gold production in the United States and Canada, silver production in Argentina, and gold/copper production in Turkey. Based on recent estimates, these companies are all trading at less than 18x FY2022 earnings estimates despite 40% plus margins while also returning considerable value to shareholders through dividends and buybacks. Let’s take a closer look at each company below:
