Mining stocks may soon offer opportunities for investors

2024-01-08 16:35:59

Measured in terms of enterprise value to free cash flow, all three companies look very expensive with values ​​between 40 and 60. If you take the operating cash flow, the values ​​are 13x for Agnico and 15.5x each for Newmont and Barrick. Looking at the tangible price-to-book ratio (excluding intangible assets such as goodwill from acquisitions) makes sense in this capital-intensive industry. Barrick comes in at 1.6, Newmont at 1.9, Agnico at 1.7. In historical comparison, these are not particularly favorable values, but they are not incredibly high either.