Aurizon Mines Ltd fka AZK

[flemsnopes]

Aurizon horizon?

Gold Miners are Cheap, Cheap, Cheap!

"Aurizon Mines (Symbol: AZK. Price $4.43), for instance, is a wonderful miner. It generates plenty of cash. It has nearly $200 million in cash in the bank and no debt. But where is the payoff for shareholders? There is no dividend, no share buyback. Despite record revenues and cash margins, AZK’s cash balance is actually 7% lower than a year ago — again, because they put it all back in the ground. The share price is down almost 10% year over year. And this has been one of the better-performing mining stocks!
It’s very frustrating…
Still, price-to-cash-flow multiples have fallen to generational lows. During the last two decades, the XAU Index of gold mining stocks traded, on average, for 14 times cash flow. Today, the XAU is selling for less than 7 times cash flow, which is very close to its all-time low. So with smaller miners that produce cash flow, you have the chance of a good bounce to something closer to historical norms. The best case is a buyout by one of those free-spending bigger gold companies."

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