Geo, from Luke Burgess at Energy and Capital:
On Friday, I mentioned a mid-tier copper producer that I keep on my radar: Nevsun Resources (NYSE: NSU).
gold 1300 may 2016 2
Nevsun is the 60% owner of the Bisha copper/zinc mine, located in Eritrea. (I had no clue where that was either until first finding Nevsun... it's in East Africa.)
The Bisha mine is a low-cost, high-grade operation that produced 136 million pounds of copper last year for Nevsun.
This year, the company forecasts a small dip in copper production to about 110 million pounds. However, an expansion project at the Bisha mine is expected to add 70 to 100 million pounds of brand new zinc production — which will more than make up for the drop in copper production in terms of revenue.
The company has no debt and plenty of cash in the bank. Shares of NSU are still trading under $4.00. And I like this company as a mid- to long-term play.
