Economic Profit is the amount remaining after subtracting from the total income of a company the total monetary cost of all business activities, as well as the opportunity cost of profits that could have been made by investing resources in alternative business activities. The economic profit measures both the financial status of the firm, and the effectiveness of the firm’s decision-making strategies.
Today we have shortlisted 10 penny stocks from energy and mining sectors of Canada that have reported positive economic spread (i.e. WACC Return on Invested Capital – Weighted Average Cost of Capital) during their trailing twelve months period, thereby creating value to the equity shareholders. Moreover, these stocks appear to be undervalued as they are trading at a discount to book value per share, although creating economic profit. During past one month, majority of the stocks have registered price gains with daily average trading volumes in excess of 100,000.
| Company Name |
Ticker |
Sector |
Exchange |
Market Cap |
Last Price |
Book Value Per Share (TTM) |
Average Volume |
Price Change (1-Month) |
Economic Spread (TTM) |
|
Anderson Energy Inc |
AXL |
Energy |
TSX |
18.1 |
0.11 |
0.15 |
272,346 |
10.5% |
36.1% |
|
St Andrew Goldfields Ltd |
SAS |
Mining |
TSX |
116.0 |
0.32 |
0.42 |
271,510 |
12.5% |
11.5% |
|
Rooster Energy Ltd |
COQ |
Energy |
TSXV |
25.9 |
0.10 |
0.69 |
485,184 |
33.3% |
11.3% |
|
Iona Energy Inc |
INA |
Energy |
TSXV |
21.1 |
0.06 |
0.37 |
565,888 |
-20.0% |
5.6% |
|
Noranda Income Fund |
NIF-U |
Mining |
TSX |
92.2 |
2.46 |
7.70 |
116,391 |
0.8% |
5.4% |
|
Goldgroup Mining Inc |
GGA |
Mining |
TSX |
20.1 |
0.14 |
0.40 |
1,266,402 |
3.8% |
2.7% |
|
Capstone Infrastructure Corp |
CSE |
Energy |
TSX |
324.9 |
3.36 |
4.71 |
308,116 |
1.2% |
2.1% |
|
North American Energy Partners Inc |
NOA |
Energy |
TSX |
125.4 |
3.59 |
5.48 |
109,349 |
4.7% |
1.9% |
|
Lynden Energy Corp |
LVL |
Energy |
TSXV |
56.0 |
0.43 |
0.54 |
115,219 |
17.8% |
1.2% |
|
Chaparral Gold Corp |
CHL |
Mining |
TSX |
71.8 |
0.61 |
1.27 |
272,616 |
27.1% |
1.1% |
Source: Bloomberg
Company Description
Anderson Energy Inc (TSX: AXL)
Anderson Energy Inc. acquires, explores, develops, and produces oil and natural gas properties in western Canada.
St Andrew Goldfields Ltd (TSX: SAS)
St. Andrew Goldfields Limited is a gold mining and exploration company located in the Timmins Camp, with current and near-term production, and advanced stage exploration targets.
Rooster Energy Ltd (TSXV: COQ)
Rooster Energy Ltd. explores for and develops oil and gas properties in North America. The company is focused on generating, acquiring, developing, and operating drilling prospects within the Texas and Louisiana Outer Continental Shelf of the Gulf of Mexico.
Iona Energy Inc (TSXV: INA)
Iona Energy Inc. is an oil and gas exploration and production company. The company acquires, appraises and develops oil assets in well known basins, initially focused on the UK North Sea.
Noranda Income Fund (TSX: NIF-U)
Noranda Income Fund is an unincorporated open-ended trust created to acquire Noranda, Inc.’s zinc processing facility in Canada. The Trust’s processing facility produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations.
Goldgroup Mining Inc (TSX: GGA)
Goldgroup Mining Inc. is a gold production, development and exploration company focused on the company’s main assets in Mexico: the Caballo Blanco gold project in Veracruz, the San Jose de Gracia gold project in Sinaloa, and the Cerro Colorado gold mine in Sonora.
Capstone Infrastructure Corp (TSX: CSE)
Capstone Infrastructure Corporation invests in infrastructure businesses in Canada and internationally. The company’s portfolio includes gas cogeneration, wind, and hydro and biomass power generating facilities. Capstone Infrastructure seeks to provide attractive total returns.
North American Energy Partners Inc (TSX: NOA)
North American Energy Partners Inc. is a resource services provider to oil and natural gas, and other natural resource companies, with a primary focus in the Canadian oil sands. The company provides a range of mining and site preparation, piling and pipeline installation services.
Lynden Energy Corp (TSXV: LVL)
Lynden Energy Corporation explores for oil and natural gas in the United States and Canada.
Chaparral Gold Corp (TSX: CHL)
Chaparral Gold Corp. is a gold exploration and development company. The company explores, develops and produces gold mine properties in Nevada.
