RE:RE:RE:RE:RE:Top Three Copper Companiesdownwithdotcom1 wrote
dude-read their 2022 guidance-only growth coming is thru the COPPER price itself - and thats only limited as they pay a propertionally higher royalty. in fact, ARG has guided to produce LESS copper in 2022 than in 2021. Also, financing for any potential NEW project might be problematic due to some of the commentary coming out of this new gov't...dwdc
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As you seem to have so many problems with ARG maybe you should sell the rest of your imaginary ARG shares and load up on more CMMC. Lets see. CMMC has over $300 million in debt. Their Austrailan project was estimated a couple years ago to cost aprox. $700 million. Their recent updated estimate is now over $850 million with construction not even started and by the time all is said and done the project will likely cost over $1 Billion and a few years of construction, loan payments and mine ramp up before CMMC makes one penny in profits on that project. And then wait another 3 or 4 years if all goes well for them to pay off that debt and then CMMC will hopefully be in good financial shape around 6 or 7 years from now.
And here we have ARG with $30 million US in debt and likely aprox. $85 million US in cash right now. At todays copper prices they are cashflowing aprox. $90 million US per year. They also have a contract with Codelco for the next 15 years. The current dividend which is a huge yield for those of us who bought lots of shares at much lower prices and sold some shares at these much higher prices to lower our costs. My cost for my remaining shares is around 24 cents. IT would have been below zero except that i bought some shares back that i had sold back recently as this company is a very good one. So my current yield based on my share cost is aprox. 50%.
The current dividend is less than 25% of current ARG free cashflow. All totaled ARG is generating aprox. 50 cents Cdn. per year in free cashflow per each ARG share. 50 cents annual Free cashflow for each of my 24 cent ARG shares. Not bad. In the next 6 or 7 years while you are still pulling your shriveled little pud waiting for CMMC to finance, build. ramp up and pay off the debt of their new project if everything goes well ARG which currently has nearly triple the cash than they have debt will generate over $600 million Cdn. in Free cashflow which equals aprox. $3.50 per share Free cashflow for each of my many 24 cent ARG shares.
One year from now when i recieve another 12 cents in dividends from ARG my share cost basis will be reduced to aprox. 12 cents per share. I will then be getting a 100% yield on my piles of ARG shares, likely more if i do a few more swing trades while you will still be wanking waiting for CMMC to find the $1 billion plus they will need to start their Australian project.
Good luck wanking you dumb wanker.