RE:Your favorite copper stock?firecracker, you may not remember, but I was asking you about Copper Mountain and Taseko back in October 2020. I ended up going heavily into Copper Mountain because I thought Taseko's costs were too high. Since October, Copper Mountain is up 300% and Taseko is up 100%. With the current valuations, I like both these stocks equally. My only concern is I think there is some risk with the in-situ mining at Florence. I really like Copper Mountain management. They are the opposite of bone headed Trevali management.
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AlfTanner
October 08, 2020 - 12:24 PM
Post# 31687529
Firecracker - Opinion on Copper Mountain Mining?
Firecracker, I am curious if you have an opinion on Copper Mountain Mining CPPMF CMMC.to? I was looking at the nubmers, and I think Copper Mountain might be another base metals value stock like Trevali.
Copper Mountain has a mine in southern British Columbia that will produce 72M pounds of copper in 2020 at a total cost of around $2.50 per pound. With copper at $3.00, the company would earn around $36M per year. The market cap is around $150M, so that gives a P/E of 4.2.
They also have the Eva Copper Project in Australia. Based on the 2020 feasibility study, Eva Copper is expected to add approximately 106 million pounds of copper equivalent per year on average over its 15 year mine life. The NPV of this project is $437M. The initial CAPEX is $382M.
Owning a project worth $437M seems pretty good for a company with a market cap of $150M. Of course, they will need to find a way to raise the $382M CAPEX.
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AlfTanner
October 08, 2020 - 02:08 PM
Post# 31689812
Firecracker - another one - Taseko TGB
Taseko has the Gibraltar copper mine in Canada (75% owned). The annual production is around 130M pounds copper. The total cost is around $2.20 per pound. With $3.00 copper, profit should be $.80 per pound or about $104M per year.
The market cap is around $250M for a P/E of 2.4 at $3.00 copper.
Taseko also has the Florence development in Arizona. It is expected to produce 85M pounds copper per year at a cash cost of $1.13. It needs $227 million of CAPEX. The NPV is $670M. Construction in 2021.
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firecracker74
October 08, 2020 - 05:38 PM
Post# 31693233
RE:Firecracker - Opinion on Copper Mountain Mining?
Copper Mountain has a gigantic amount of debt, about $380M total. It will hard to get new financing with that much debt.