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A large-cap metal stock is hitting Covid-19-caused obstacles out of the park with its exceptional performance. The stock flirting with its all-time pre-pandemic high level attained in 2018. In its last trading session on December 4, the stock added an impressive growth of 5 per cent and touched a 52-week high price of C$ 21.10.
The mining sector gives a crucial impetus to the Canadian economy. Traditionally, Canada has benefited from low-cost mineral and metal items, good job opportunities, and substantial wealth creation.
However, this sector has not escaped from the pandemic-led slump. The mining-related activities have been affected due to isolated COVID-19 cases outbreaks, government-directed shutdowns, and low demand for various commodities.
Despite all, this mining stock has overcome all challenges and has swelled by 58 per cent in the year of the pandemic.
We’re talking about First Quantum Minerals (TSX:FM).
Below, we have an in-depth analysis of this hot stock’s market fundamentals and financials:
First Quantum Minerals Ltd (TSX:FM)
Current Stock Price: 20.89
First Quantum Minerals Ltd explores mines for copper, gold, nickel, and zinc. It engages in the production of copper, nickel, gold, zinc, and sulfuric acid. It has its operations in Finland, Turkey, Spain, Mauritania, and Zambia. The company also invests in exploration and development.
First Quantum announced its Mineral Projects and Technical Report for its Taca Taca development project on November 30 through an exchange filing. Taca Taca is a copper, gold, and molybdenum project based in northwest Argentina. In its report, the company estimates to process up to 60 million tonnes of metals per annum via a conventional initiation circuit with a mine life of nearly 32 years.
First Quantum Stock Performance
The metal stock has rocketed over 42 per cent in the last 30 days. It has added an amazing 119 per cent growth in the last six months and 61.5 per cent in three months. The stock plunged to a 52-week low on March 23, but it surged back with 343.52 per cent growth since then.
The scrips indicate a 58 per cent surge year-to-date (YTD).
First Quantum's Year-To-Date Stock Performance (Source: EODHD/Others Thomson Reuters)
Its current market capitalization is approximately C$ 14.40 billion.
The mining company’s 10-day average stock trading volume is 2.68 million units. The stock made it to TMX’s top active stocks across the TSX and TSXV in the last 10 days.
First Quantum has also been placed on TMX’s top basic material stocks and TMX’s top metals stocks. Both charts list TSX and TSXV stocks with the largest price gains in the last 30 days.
As per data available on the TMX portal, First Quantum’s current price-to-book (P/B) ratio is 1.22, and the price-to-cashflow (P/CF) ratio stands at 7.10. Its current debt to equity (D/E) ratio is 1.32.
The company pays a semi-annual cash dividend of C$ 0.005 per stock. It holds a current dividend yield of 0.048 per cent.
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As per EODHD/Others (Thomson Reuters) technical chart, the difference between the last closing price and 60-day simple moving average (SMA) has increased by 43 per cent. Moreover, the price difference has amplified by nearly 87 per cent between the last trading session and 200-day SMA.
In the last three months, the stock has successfully surpassed its benchmark index. First Quantum posted nearly 76 per cent growth vs 49.55 per cent growth of the Toronto Stock Exchange 300 Composite Index. The metal stock is also leading against the TSX 300 Composite Index in the last one-year period.
First Quantum's 3 Months Stock Performance (Source: EODHD/Others Thomson Reuters)
First Quantum Financial Highlights
The metals company registered sales revenues of US$ 1,402 million in its the third quarter of 2020, up 42 per cent from Q3 2020, driven by profitable sales volumes of copper and gold from Cobre Panama and Kansanshi projects, and rising metal prices.
Its copper sales hedge program lowered sales revenues by US$ 51 million in the third quarter, while the nickel sales hedge program generated US$ 2 million.
First Quantum’s net debt reduced during the quarter by US$ 113 million to US$ 7,545 million. The company posted a gross profit of US$ 346 million for Q3 2020 as compared to US$ 150 million in the same quarter a year ago.
Its comparative EBITDA was US$ 641 million for Q3 2020 against US$ 354 million for Q3 2020.
The company concluded the quarter with US$ 915 million in net unrestricted cash and cash equivalents and current working cash of US$ 1,132 million.
First Quantum Outlook
The company notified some additional risk to the accuracy of outlook information due to difficulties posed by the COVID-19 pandemic in 2020.
The company has increased its guidance for copper production to between 750,000 and 785,000 tonnes, a surge of 25,000 to the lower value and 15,000 tonnes to the upper value. Its guidance for gold production is between 245,000 and 260,000 ounces, a rise of 15,000 ounces to the lower value and 10,000 ounces to the upper value.
