MoneyMaaster’s Stock Review: A look back at my top pick last year!

Caledonia Mining Dividends Stock

Before I dive into my current top stock pick (coming soon) – I wanted to do a look back at last year’s top pick and see how it performed.

Last June I wrote about my top pick: Caledonia Mining.  You can read the full write up: HERE

When I chose Caledonia as my top pick last year, it was trading at $8.35

Here is a quick recap of what I said about this Caledonia last year:

  • The company pays a healthy dividend which it increased in July 2016
  • EPS: 0.26
  • P/E Ratio: 6.6
  • 18% increase in gold production year over year
  • -9% decrease in cost per ounce to produce
  • +98% increased Net Profit year over year

Caledonia has paid consistent dividends since 2014 and is covered 2.9 times by earnings & 7.7 times by operating cash flow.  They are on track to produce 80,000 ounces by 2021(to put that growth into perspective they produced 50,351 in 2016).”

Fast forward a year – and things are still looking great.  Today the stock is trading at: $11.70.  Not including dividends, this equals a one year return of 28.6%!  Caledonia’s current dividend yield is 2.9%, although had you bought a year ago when it was recommended your yield would be 4.3%!

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Although the price has gone up – I still think Caledonia is a great buy.  Here are how the numbers compare to last year:

  • EPS: was 0.26 is now: 1.12
  • P/E Ratio: was 6.6 is now: 11
  • Dividend was increased 10% in July!

Caledonia saw some huge gains in net profit (due to some tax reform), as well as an increase in the price of gold.  The company remains on track to increase its overall production to 80,000 ounces by 2021.  Overall I’d say it was a great year for Caledonia and I still think this is a good buying opportunity.  The only real risk I see with this company is if the political situation in Zimbabwe turns and impacts them in a negative way.  With virtually no debt, and some aggressive production goals, I think Caledonia will continue to provide solid results for years to come.

Stay tuned for My 2018 Top Pick!

 

6 Comments on “MoneyMaaster’s Stock Review: A look back at my top pick last year!

  1. Hi Jordan, Not a company that I’m familiar with. I haven’t had the best luck with mining companies (aide from oil) be it commodities or precious metals, so I have tended to avoid them in recent years. Glad this one has worked out well for you. Tom

    Like

  2. Jordan,

    This is a fun idea, especially as we analyze so many stocks throughout the year. Do you plan on selling the stock now that it appreciated? Or do you think this is a good long-term option?

    Bert

    Like

  3. Nice pick man. That is a great yearly return! Look forward to seeing this years pick.
    Cheers

    Liked by 1 person

  4. Hey DiS!

    Yea, I’ve been a big fan of this company for a few years now. I actually sold it a while back because RBC didn’t allow it to DRIP, but eventually I’d like to get back into it.

    Like

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