There are very few growth opportunities available in the metals & mining industry in Canada with as solid of a balance sheet as Nevsun Resources (TSX:NSU).
I'm going to take a look at why the company's most recent dip may work in the favour of investors looking for value amid a market filled with pricey assets and shaky balance sheets.
On August 25, Chief Development Officer Scott Trebilcock purchased 40,000 shares of the company's stock, bringing the total value of his holdings in the company to more than $130,000 as of Thursday's closing price.
This position was made during one of the most sharp downward spikes the company has seen of late, indicating the most recent dip in Nevsun's stock price may be an excellent buying opportunity for outsiders.
The mid-tier base metals company has continued to grow its portfolio of projects around the world, providing a relatively healthy stream of free cash flow until this year, which saw the company post higher capital expenditures than operating cash flow, leading to the deficit.
Nevsun is currently developing a number of projects right now that appear promising, and given the strong buy signals management has been sending off, I would not be surprised to see this stock pop in the medium-term as investors gain a better understanding of just how valuable this company's assets, and balance sheet, are.
Invest wisely, my friends.
