Kalkine Media - Summary
The category of mineral stocks includes some of the largest global corporations that are liked by some and eyed with heavy scrutiny by others. While mining and extraction efforts are said to cause environmental harm, many of these extracted minerals are essential to daily operations.
- The mineral and metal industry include corporations that are typically large organizations and may sometimes pay dividends.
- Orla Mining acquires and explores mining properties and reported a net income of US$ 13.2 million in Q1 2023.
- Vox Royalty has a portfolio of more than fifty royalties and streams and had a total revenue of US$ 3.58 million in the March 2023 quarter.
Most commercial inventions involve usage of these minerals, which has led to the vast expansion of this industry. Investors may sometimes prefer investing in this industry due to the presence of few, big players that they can bank on.
Dividends are another attractive feature of mineral and mining stocks, as they may sometimes be offered by these corporations. However, this industry is largely dependent on the demand from other sectors as metals and minerals are most often utilized as inputs.
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On that note, here are two non-energy mineral stocks that investors can examine in the month of June:
Orla Mining (TSX: OLA)
Orla Mining acquires and explores mining properties and is engaged in two gold projects- the Camino Rojo project and the Cerro Quema gold project. The major areas across which Orla Mining operates include Mexico and Panama.Orla released its results for Q1 2023 in early June, indicating that it is on track to meet its 2023 annual AISC guidance of US$750 to US$ 850/oz sold. For Q1 2023, the net income was US$ 13.2 million or US$ 0.04 per share. This included US$ 6.9 million in expensed exploration and development costs.
Image source: ©2023 Kalkine®; Data source: Company Reports
The adjusted earnings for the quarter were reported to be US$ 11.4 million or US$ 0.04 per share. Meanwhile, the cash balance for the March 2023 quarter was US$ 83.8 million and net debt was US$ 56.6 million.
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Vox Royalty Corp. (TSX: VOXR)
Vox Royalty acquires precious metal royalties and purchase agreements and has a portfolio of more than fifty royalties and streams. Mining streaming and royalty companies acquire mining operations by way of an agreement in which they make an up-font cash payment. In return for the payment, the streaming partner receives a share of future production at a discounted price that is mutually agreed upon.Mining and streaming companies allow an alternative form of investing in the industry. Large mining corporations can enter such deals to improve balance-sheet leverage, while small mining companies may require funds for certain projects.
Image source: ©2023 Kalkine®; Data source: Company Reports
The company’s total revenue in the March 2023 quarter was US$ 3.58 million, as against US$ 2.10 million in the December 2022 quarter. Vox Royalty’s operating income in the quarter was US$ 0.94 million. The EBIT for the quarter was US$ 50,000.
Disclaimer:
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.