Breakwater Profits in Zinc

Article Excerpt

BREAKWATER RESOURCES $1.82 (Toronto symbol BWR; SI Rating: Speculative) (416-363-4798; www.breakwater.ca; Shares outstanding: 385.8 million; Market cap: $702.2 million) reports 175.8% higher revenues in the three months ended December 31, 2006, to $158.3 million from $57.4 million a year earlier. The increase came from higher prices for zinc, plus a 21% increase in production. Cash flow jumped to $0.12 a share from $0.004 a share. The stock now trades at around 3.8 times cash flow per share. Breakwater operates three producing base-metal mines: the Myra Falls mine in B.C., El Mochito mine in Honduras, and El Toqui in Chile. It’s also developing the Langlois mine in Canada. Breakwater is still a buy for aggressive investors. investors…