What follows is an exerpt from Canaccord Wealth Management’s November 28, 2012 Morning Coffee newsletter.
Copper Mountain Mining Corp. (TSX: T.CUM, Stock Forum) received some positive press as an article in the Washington Post called the company a possible target for M&A, as potential buyers are attracted to British Columbia as a comparatively safe jurisdiction in which to do business.
The Post commented, “The location of Copper Mountain’s main mining project in British Columbia may prove alluring to acquirers seeking assets where there’s low risk of social disorder.”
The article went on to say that while initial copper production levels were disappointing after extraction began in 2011, the company seems to have turned the situation around and a buyer should strike now before Copper Mountain shares rebound.
A Bay Street firm noted that companies such as Teck Resources Ltd. (TSX: T.TCK.A, Stock Forum) (TSK: T.TCK.B, Stock Forum) (NYSE: TCK, Stock Forum) could offer $8 a share in a deal. Recently the company reported Q3/12 revenue of $47.6 million and net income of $0.03 per share.
For the quarter, the company produced 20,900 dry metric tonnes of copper concentrate, which was delivered to Japan, containing approximately 12.1 million pounds of copper, 3,400 ounces of gold, and 81,800 ounces of silver.
For the quarter, total cash costs were $3.25 per pound of copper sold net of precious metal credits and after all off site charges.
Shares of Copper Mountain rose 3.7% Wednesday to $3.63, leaving the company with a market cap of $357.7 million, based on 98.5 million shares outstanding. The 52-week range is $6.39 and $2.43.