Belo Sun Mining (TSX:BSX): A Gold Stock To Buy?

Follow us on Google News:
 Belo Sun Mining (TSX:BSX): A Gold Stock To Buy?

Source: Africa Studio, Shutterstock

Belo Sun Mining is inches away from exploring a gold mine in the Amazon rainforest. Its proposal on how the exploration would impact indigenous people was permitted by the Brazilian government.

The gold miner will have to maintain high eco-friendly standards and is expected to pay approximately C$ 170 million in taxes. The exploration will also generate hundreds of jobs for the locals.

This approval could bring a spark to the Toronto-based company’s stock.  Let us check how this gold-stock faring:

Belo Sun Mining Corp (TSX:BSX) 

The metals and mining firm has operations across Canada and Brazil. The company has a market cap of nearly C$ 346 million and a price-to-book ratio of 6.909.

The precious metal stock has yielded more than 58 per cent returns in the past one year, outpacing the S&P/Toronto Stock Exchange Gold (Sub Industry) Index that is up over 49 per cent in the same period.

The stock has recovered by 114 per cent from its 52-week low of C$ 0.355 per common share. It was trading at C$ 0.76 per piece at market close on Friday, March 26.

However, the stock has declined by almost 21.70 per cent year-to-date (YTD). The stock has witnessed marginal growth of 7 per cent month-to-date (MTD).

The yellow metal explorer has 455 million listed outstanding shares on the TSX, along with an average 30-day volume of 327,629. But the stock could fluctuate in the upcoming sessions.

Source: Copyright © 2020 Kalkine Media Pty Ltd.

As of June 2020, the mining firm had total available cash of C$ 32 million and reported no debt. The above working capital could suffice for the upcoming few years.

However, the recently announced Amazon rainforest site investment is almost six times more than the available balance. Hence, Belo Sun Mining Corp will have to raise money through share offerings or applying for a credit facility worth more than C$ 100 million.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK