Should you buy these 3 AIM mining stocks trading at a discount?

Highlights 

• Sylvania Platinum reported net profits of $14.7 million in Q4 ended 30 June 2021.
• The Government of Queensland approved Wishbone’s proposal to acquire additional land as a part of its Wishbone II exploration permit for gold.
• Xtract Resources has reported progress at its Phase 2 diamond drilling programme.

AIM mining stocks include small and medium-sized businesses in the mining sector. Investing in AIM mining stocks may offer investors to benefit from government-sponsored tax rebates and schemes. Although AIM stocks are associated with high rewards, they may often be associated with risks. Therefore, careful stock selection by evaluating key fundamentals may play an important role in improving investors’ stock-picking within the AIM.

Here we take a look at 3 AIM-listed mining stocks you can buy for the long term.

Sylvania Platinum Limited (LON: SLP)

Sylvania Platinum is a company engaged in the low-cost production of platinum group metals.

For the Q4 ended 30 June 2021, revenues of Sylvania Platinum declined by 20% from $55.3 million in Q3 to $44.1 million due to low ounce production and poor quarter-on-quarter basket price. It reported net profits of $14.7 million (Q3: $41.3 million), and a cash balance of $101.1 million (Q3: $102.1 million) in Q4 ended 30 June 2021. The company’s EBITDA for Q4 stood at $28.7 million compared to $58.7 million in Q3. 

Sylvania Platinum’s shares traded at GBX 95.50, down by 6.74% at 13:14 PM on 2 September 2021. The company’s shares have given a return of 53.78% in the last one year to shareholders, and its market cap stood at £279.01 million.

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Wishbone Gold Plc (LON: WSBN)

Wishbone Gold is a company engaged in the exploration and trading of precious metals. Recently, the Government of Queensland approved Wishbone’s proposal to acquire additional land as a part of its Wishbone II exploration permit for gold. On 2 September 2021, Wishbone Gold’s wholly-owned Cottesloe Project, located in Patersons Range of Western Australia, received an extension by the Western Australian Government for 5 years till 30 June 2026.

For the financial year ended 31 December 2021, Wishbone recorded a cash balance of US$2.18 million (2019: US$17,179).

Wishbone Gold’s shares traded at GBX 9.95, down by 2.45% at 13:16 PM on 2 September 2021. The company’s shares have given a return of 118.41% in the last one year to shareholders, and the market cap stood at £17.64 million.

Xtract Resources Plc (LON: XTR)

Xtract Resources primarily focuses on copper and gold exploration and mining. In August 2021, Xtract Resources reported progress at its Phase 2 diamond drilling programme and completed the fifth and sixth holes at the New South Wales-based Bushranger copper-gold porphyry exploration project.

For the full year ended 31 December 2020, Xtract Resources’ revenue from gold sales reached £1.73 million compared to £1.35 million in 2019. The company held cash of £0.92 million in 2020 compared to £0.36 million in 2019.

Xtract Resources’ shares traded flat at GBX 3.80 at 13:16 PM on 2 September 2021. The company’s shares have given a year-to-date (YTD) return of 114.72% to shareholders, and its market cap stood at £32.12 million.