The metal and mining sector includes industries focused on extracting metal and mineral reserves all across the world. These reserves are mined to generate profits and use the resources in different ways like jewelry production, investments, and industrial applications. The sector consists of globally recognized companies that are operating with considerable revenues. It is rightly said - “Mining is a big business.” The mining sector is quite popular among investors too. When investing in mining stock prices, you must know that the sector is divided into two groups, namely juniors and seniors. In the year 2020, the total revenue of the top companies in the mining sector amounted to $692 bn. The United States mining sector showed an increase in the GDP to 428.50 USD in the fourth quarter of 2020. So, it would be correct to say this is an excellent opportunity for long-term investors to invest in the mining stocks of the United States.
Together with the benefits, purchasing the shares comes with a risk of a price drop. Especially in the mining sector, there is always a chance that the mining stock prices will drop to zero. But don’t let it deter you from entering the stock market. If you have the adequate knowledge to pick the right company to invest in, it can work wonders for you. There’s no surprise that you can make more money than losing in the share market. One such fine example is - Monument Mining Limited. In the last year, the company has shown a tremendous 242% rise in mining stock prices. This company offered great returns to all its long-term shareholders.
As per Warren Buffett, the mining stock prices do not always reflect the valuation of the company. To evaluate the change in business over a period of time, you need to compare the earnings per share (EPS) with the mining stock prices. Since last year, Monument Mining Ltd. has increased its earnings per share, turning it from a loss-facing company to a profitable business.
Monument Mining Limited is a gold manufacturing and mining assets developing company that focuses on the gold deposits and investigations of copper and iron deposits. It works across different portfolios like a gold seal, gold from Murchison and copper, and iron from Mengapur, conducting its business in other countries: Australia, Canada, and Malaysia. It has its headquarters in Vancouver, Canada, and it engages in the purchase, exploration, and development of rare metals and mineral properties of other base metals. It has 100% interest in the Gold mine of Selinsing and the Murchison Gold Projects. The portfolio of Selinsing gold includes the properties of Pahang State, Malaysia, like sensing, buffalo reef, Famehub, and Felda Land. The Murchison Gold Project portfolio comprises Burnakura, Gabanintha, and Tuckanarra properties within Western Australia's Murchison district.
Headquarters: Vancouver, Canada
Founded (In And By): Robert F. Baldock In 1997
Ceo And President: Cathy Zhai
Day Range (As Of May 2021): 0.19 - 0.21
Market Cap (As Of May 2021): $67.44m
Sector: Basic Materials/Resources
Revenue (As Of 2021): $40.24m
Shares Outstanding (As Of 2021): 328.97m
52 Week Range: 0.21 - 0.06
Public Float (As Of 2021): 266.18m
Monument Mining stock prices in the last twelve months have shown an incredible increase of 242%. Not just this year, in the previous three years also, it rewarded its shareholders with 215% of return. Even though the production was suspended for eight weeks at Selinsing Gold Mine after the pandemic outbreak, the company has generated a positive cash flow.
If you check the TSR of the company, you will find out that the last year’s performance of the company is even better than that in the preceding five years. This depicts that the company improved its mining stock prices or stock performance massively in 2020.
In the fiscal year 2020, Monument mining limited has shown an increase in mining stock prices of 242%. For a better understanding of the increase, you have to look at the fiscal highlights of the company. Here are some of the prominent achievements that will help you understand how the company has offered its shareholders these great mining stock prices.
1. Sale of Gold - 19,401oz for $29.97 million
- $8.98 revenue more than the previous year
2. Cash cost of gold per ounce - $878/oz
-Increased by 23% from the last year
3. Gold Production - 17,360oz
-10% increase as compared to the previous year
4. 2020 SALES GROWTH - 44.80%
5. Average gold realized price (per ounce) - $1,260/oz
6. Gross Margin - $12.94 million
-40% increase in margin than last year
7. Net Loss (per share) - $0.28 million, or $nil
8. Cash Usage in Investing activities - $5.47 million
9. Cash and cash equivalents balance- $10.13 million
-an increase of $0.78 million from the last year
10. Completion of Peranggih trial mining program
11. Discovery of Mentique Prospect at the west of Peranggih
12. The drill program at Murchison verified the targeted mineralization
13. Production at total capacity during the suspension of Selinsing due to the COVID-19 pandemic.
Here are some of the developments of the company during the year ended June 30, 2020. These developments are the core reasons behind the massive increase in mining stock prices.
1. The company initiated three projects at the Selinsing Gold Mine - The Sulfide Gold Project, Mine Development For Gold Production, And The Tailings Storage Facility (“TSF”) Construction.
2. Metallurgical drilling was conducted at the Selinsing and Buffalo Reef pits.
3. Finalized the second stage TSF lift plan to increase the project capacity production for fiscal 2021.
4. The company conducted a soil sampling campaign at Peranggih.
5. Monument mining showed completion of Haul truck road construction during the second quarter.
6. The members worked on the trial pit for bulk mining and completed it in February 2020.
7. Monument mining recommended grade control drilling at Peranggih.
8. Completed 3D structural targeting study at Murchison.
9. The company completed the two phases of the drill program at the mining center in Australia.