3 Mining Stocks With Fast Earnings Growth And Stronger Balance Sheets

Rising US inflation expectations and higher long term yields are putting a clear price on earnings growth. Investors are now paying closer attention to companies that can grow profits fast enough to justify that higher hurdle. That is where the Healthy high growth potential screener comes in. This article highlights three stocks from the screener that analysts expect to grow earnings strongly while keeping balance sheets in acceptable shape.

The stocks covered below are just a small sample of the opportunities that meet this healthy high growth potential theme. The full screen surfaces 32 more companies with similarly compelling earnings profiles and financial positions that are not discussed here. To identify, compare, and analyze the highest conviction ideas that fit your own criteria, head straight to the Healthy high growth potential screener.

Overview: Anglo Asian Mining is a Baku based miner that explores and produces gold, silver and copper across a portfolio of assets in Azerbaijan. The company focuses on extracting and selling these metals to global customers from its local operations.

Operations: Anglo Asian Mining generates all of its roughly US$123 million in revenue from mining operations in Azerbaijan.

Market Cap: £466 million

Analysts expect Anglo Asian Mining to be in the healthy growth camp, with earnings projected to grow at around 25.9% a year and revenue at roughly 22.7% a year over the next few years. The company only recently moved from a loss to a US$17.68 million profit, which helps explain why the stock trades on a higher P/E than peers. A forecast return on equity above 30% and a final dividend of US$0.04 per share indicate that the business is using capital and cash flows in a shareholder friendly way. Investors do need to be comfortable with higher share price volatility and a concentrated funding structure, so valuation discipline and risk tolerance are especially important here.

Anglo Asian Mining’s rapid earnings ramp and high forecast return on equity suggest that the story is still evolving. Get the fuller picture and see what the analyst forecasts for Anglo Asian Mining might be missing.

Build your own high growth shortlist

Anglo Asian Mining and the two other stocks in this article all came from a single Simply Wall St screener, but the real edge comes from building your own filters around growth, balance sheets and dividends. Use our flexible Screener to shape a watchlist around your criteria, or jump straight into any of our curated Investing Ideas.

Overview: Sylvania Platinum is a platinum group metals producer that recovers platinum, palladium, rhodium and chrome from tailings in South Africa, while also exploring near surface deposits across projects such as Everest North, Volspruit, Aurora and Hacra. Founded in 2007 and based in Bermuda, the company focuses on low cost tailings retreatment through its Sylvania Dump Operations and Chrome Tailings Retreatment Plant, with additional potential from exploration for metals including ruthenium, iridium, nickel and copper.

Operations: Sylvania Platinum generates virtually all of its roughly US$156 million in revenue from the Sylvania Dump Operations tailings retreatment business, with a small segment adjustment.

Market Cap: £225 million

Sylvania Platinum is currently associated with forecasts for earnings growth of about 41% a year and revenue growth of roughly 23% a year, while the company already reports net margins of 23.2%. Investors are getting that profile alongside a producer that focuses on tailings retreatment rather than deep-level mining, which can mean lower operating risk, although investors still need to factor in South African country risks, PGM price swings and a board that is only 20% independent. The stock has lagged the wider UK metals and mining sector over the past year even as reported earnings momentum accelerated, and RBC Capital maintains an Outperform rating despite trimming its target to 165p. This combination is why Sylvania Platinum appears on this screener for investors who want to weigh relatively strong analyst growth forecasts against funding and governance risks.

Sylvania Platinum’s accelerating earnings forecasts and 23.2% net margins sit awkwardly beside its recent share price lag and governance questions. Get the full story in the 5 key rewards and 1 important warning sign and see what might be driving that gap next.

Overview: Metals Exploration is a London based mining company that identifies, acquires, explores and develops gold and other precious and base metal projects, anchored by its 100% owned Runruno gold project north of Manila in the Philippines. The company focuses on turning these deposits into producing assets through on site mining and processing operations.

Operations: Metals Exploration generates all of its roughly US$208 million in revenue from gold and other precious metals mining in the Philippines.

Market Cap: £415 million

Metals Exploration is presented as a healthy growth company, with analysts cited as projecting earnings to grow around 88% a year and revenue close to 29% a year over the next few years, backed by five years of profitability and what is described as high quality earnings. Net margins of 13.9% and a forecast return on equity of 39% are highlighted as indicators of a business that may be extracting more value from each dollar it reinvests. At the same time, the balance sheet is described as being funded entirely by higher risk external borrowing and the P/E is noted as being above sector peers. In addition, the company has limited analyst coverage, a board that is only one third independent, and a new copper gold exploration initiative at Batong Buhay, which together suggest that the potential opportunity is accompanied by funding and governance considerations that investors may wish to examine closely.

Metals Exploration’s earnings forecasts and 39% return on equity projections look powerful, yet the fully debt funded balance sheet raises sharp questions. Get the forward view through the analyst forecasts for Metals Exploration and see what that mix could really mean.

Seeking Fresh Alternatives For Your Curiosity

Fresh stock ideas can move fast. Screens that look quiet today may be tomorrow’s breakout list. Review these before the broader market focuses on them while it still matters and consider your options early.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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