Tag Archives: QKR Corp

Why I Bought Nevsun Resources

nevsun-bisha-mine
Nevsun Resources is literally a cash cow. It has an incredible profit margin and also has a robust balance sheet. It’s an extremely rare mining company when it comes to profitablity and quality of its deposit

By Value Sniper,

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

Next Billion Dollar Mining Takeover Could be in Eritrea

Qatar-Backed QKR Corp. poised to takeover Nevsun’s 60 percent share of the Bisha gold, copper and zinc mine in Eritrea for a $1 Billion Bid

By James Fraser,

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.

Nevsun’s stock was halted at 7:22 am (pst) and is up 13.2% on 1.9 million shares traded giving the company a market cap of  ~$956.9 million. Continue reading Next Billion Dollar Mining Takeover Could be in Eritrea