By Robert Cotter,
BELOW are the three companies in the Gold industry with the highest operating margin. A healthy operating margin is required for a company to pay for its fixed costs and generate cash.
Nevsun Resources (AMEX:NSU) is highest with an operating margin of 53.5%.
Nevsun Resources Ltd. is a gold producer and base metal developer. The Company has a gold-copper-zinc mine in Eritrea.
Nevsun Resources (AMEX:NSU) has potential upside of 22.6% based on a current price of $4.11 and analysts’ consensus price target of $5.04.
The stock should discover initial support at its 50-day moving average (MA) of $3.83 and subsequent support at its 200-day MA of $3.60.
Following is Royal Gold (NASDAQ:RGLD) with an operating margin of 44.8%.
Finishing up the top three is Franco-Nevada (NYSE:FNV), with an operating margin of 44.2%.
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AUDIO: Nevsun Resources Q2 2014 Earning Results Conference Call
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