The basic sector has thirteen industries all related to mining, making and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; paper; gold; silver; specialty chemicals; steel.
Today I'm reviewing a mining resources company. It's a mid-cap stock, Mineral Resources Limited. It's trading ticker symbol is MALRF.
Mineral Resources Ltd is a mining services and processing company in Australia, China, Singapore, and internationally. It has three segments: Mining Services & Processing, Mining, and Central.
The company offers contract crushing, screening, and processing services on build-own-operate or build-operate basis for mining companies.
Further, it offers project management and delivery services for pipeline engineering and construction, mine dewatering systems and hydrocarbon management.
Mineral Resources Limited was founded in 1993 and is headquartered in Applecross, Australia.
Three key data points measure dividend equities or funds like Mineral Resources Limited:
(1) Price
(2) Dividends
(3) Returns
After those three, four more keys will unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
MALRF Price
Mineral Resources's price at yesterday's market close was $13.87 per share. A year ago its price was $8.85. That is a gain of $5.02 per share in the past year.
Assuming Mineral Resources's price gains at the same pace this year, its price would grow from $13.87 to $18.89 by the end of March, 2019.
MALRF Dividends
Mineral Resources's most recent variable semi-annual dividend was $0.1982 declared in February and paid March 8, 2018.
The Mineral Resources estimated annual dividend for 2018 is estimated at $0.46 paid in two unequal portions in March and September.
The yield from that $0.46 annual dividend is 3.3% at yesterday's $13.87 share price.
Gains For MALRF?
Adding the $0.46 annual dividend to the $5.02 estimated price gain makes a $5.48 projected gross annual gain, which must cover any cost to trade those shares.
Say $1,000.00 was invested yesterday at the $13.87 price. That trade bought 72 shares.
A $10 broker fee paid as $5 at purchase and $5 at sale of the shares equals about $0.14 in cost per share
Subtracting that $0.14 brokerage cost from the estimated $5.48 gross gain leaves a net gain to next year of $5.34 X 72 shares
= $384.48
or a 38% net gain on a $998.64 investment.
Therefore, Mineral Resources Limited (whose ticker symbol is MALRF), now shows a possible 38% net gain including a nearly 3.3% dividend yield.
NO analysts cover this stock. However, its past 9-year price history shows a rise from the 2009 recession to a peak in 2012 then declining to low in 2016 with a healthy climb to a new high in January 2018 from which it fell off 18% the last two months.
Those forward-looking numbers were conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Mineral Resources Limited is worth your time and money.
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