NEVSUN Resource (NYSEMKT:NSU) is operator of the Bisha mine. It is one of the highest grade open pit copper mines in the world. The Bisha mine is located in Eritrea.
Due to its high grade, it has one of the lowest operating cash cost in the entire industry. In fact, the mine produces 196 million pounds of copper at a cash cost of only $1.05. Based on the current price of $2.8, it is possible to calculate a profit margin of almost 63%. Clearly, Nevsun will continue to stay largely profitable even if the copper price continue its downtrend.
With this incredible margin, the company has a trailing twelve months earnings per share of $0.47. It is important to mention that the firm pays a dividend of $0.16 per year. It represents an annual yield of 4.4%. Continue reading Why I Bought Nevsun Resources→
RUMORS are circulating this morning that the latest takeover in the mining space will be Nevsun Resources (NSU.T). Bloomberg is reporting that QKR Corp, a mining fund backed by Qatari investors, is set to make a $1 billion bid for Nevsun. QKR Corp is led by Lyold Pengilly, a former banker at JP Morgan.