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Do Gold & Precious Metals Miners Still Offer Good Value? – Silver Wheaton Corp. (USA) (SLW), Alexco Resource Corp. (USA) (AXU)

How Other Metals Companies Are Faring

Another metals mining company, Alexco Resource Corp. (USA) (NYSEAMEX:AXU), is also working towards reaching its cost efficiency and production targets. One of the biggest positives in this company’s favor is the fact that it has operations in the area of the Yukon that is known as the “Silver Trail.” Between 1950 and 1990, this particular geographic region was responsible for producing roughly 217 million ounces of silver – although it is expected that there is a great deal more that is available in the area of not just silver, but also zinc and lead that is ready to be mined in this location.

Alexco also now has its Bellekeno mine and mill operating – meaning that it is currently both running and producing silver. Later in 2013, the company plans to have two additional mines running. These include Lucky Queen and Onek. Although, in order to meet its goal of producing approximately 5 million ounces of silver in 2015, Alexco will need to step up its production a great deal, as the firm is presently only running a production of roughly 500,000 ounces per year. Trading well below its 52-week high, Alexco could be a great buy, especially at under $5 per share.

With the continued rise in metals values, Rio Tinto plc (ADR) (NYSE:RIO) has provided a steady dividend and yield for investors at $1.45 per share and 2.5% respectively. Although the company’s anticipated annual 2012 revenue of $52 billion is down from its fiscal year 2011 revenue of just over $60 billion – and earnings per share are also expected to be off from $8.09 in 2011 to (expected) $4.02 for 2012 – Rio’s anticipated dividend per share is thought to be up by over 10% from FY 2011.

One other potential mining industry mover, Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), could be considered for both income and growth. Although some in the industry feel that the firm is making a mistake in moving into the area of oil exploration, the shares continue to provide investors with a solid dividend yield in the 3.5% range. Freeport-McMoRan is known for operating large and geographically diverse assets – and especially those that possess both probable and proven reserves of gold, copper, and even molybdenum. Freeport also has a solid P/E ratio of 11.08 and a very respectable earnings per share of 3.19.

Another firm considered to be a high-yielder in the mining arena is Cliffs Natural Resources Inc (NYSE:CLF). With the opportunity to invest in an iron-ore producer that offers a nice dividend yield of nearly 7%, investors may want to take a second look here – especially in light of the company’s 6.33 earnings per share.

The Bottom Line

Given its positive production results, along with the continued high value of gold and other metals, I feel that Silver Wheaton shares could provide a great value to investors in the area of growth over both the short- and long-term time horizons. The addition of more mines seem to have been positive moves for the company – adding to its overall production and profitability that is estimated to continue over the next two decades.

The article Do Gold & Precious Metals Miners Still Offer Good Value? originally appeared on and is written by Maxwell Fisher.

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