Alta Copper Corp. T.DNT

What will happen

[ac2022]

 google-translation No matter how you evaluate the last supervisory board election. Something is moving. And it is also clear that there are only a handful of options for converting a deposit into a mine. 1. You do it yourself as an explorer 2. You get someone on board. 3. You sell the deposit I can't think of much more. Regarding point 1, an explorer is usually led by geologists. Geologists have their skills in discovering deposits. They have no real skills in building a mine. So such an explorer would have to obtain this necessary expertise. If we turn our gaze to Candente, we see: the expertise is already there. As the fourth largest nickel producer in the world, Fortescue is just such a mining company with extensive mining expertise. Fortescue has often announced that they want to gain a foothold in copper mining. Then, in 2020, Fortescue will take a 20% stake in Candente and at the same time send 2 geologists on site to examine the Canariaco project more closely. On April 1, 2022, Candente announces a 46% increase in its resource to 14 Bn p copper. In June 2022, Fortescue withdraws confidence from the old members of the supervisory board. Would this happen if everyone pulled together? In my estimation, Joanne's intention was to complete Canariaco Norte in a timely manner while continuing to drill Sur and Verde in order to define a reliable overall resource here. The economics of the latter two would result from that of Norte. Sur and Verde could be considered a "resource extension" of Norte because they share the same mine workings. However, the final studies on Norte and the further drilling of Sur and Verde would perhaps take another 1-2 years. But then there would be a deposit with 20-21 billion p copper.

 Ultimately, if Fortescue would just sit by and watch, the price will only drift higher. Keywords: copper shortage, lack of new deposits, massive increase in consumption due to the green deal. In comparison, "only" 14 billion p copper is currently up for debate, of which Fortescue already "owns" 20%. If Fortescue has decided to convert the Canariaco project into a mine, then from their point of view now is the right time. The expansion of resources from 9 billion p to 14 billion p copper was perhaps even a kind of warning shot. And copper prices haven't reached $15,000 or even $20,000 per ton yet. In this respect, this point in time of the change of direction seems logical somewhere. If these thoughts are correct, then we could probably expect an offer in the near future. Whether that's fair or not remains to be seen. Because otherwise the disempowerment of the "old guard" makes no real sense. It does indeed look like a way is being cleared for something. As far as I know, a purchase offer must be brought to a vote in a public limited company. We shareholders can then also reject a purchase offer. To do this, however, we sometimes have to take care of the possibilities of "proxy voting" ourselves. Not every broker will approach you on their own.

 In this respect, we are then asked to be more active. Points 2 and 3 don't really make sense for Fortescue. Fortescue didn't take a 20% stake in Candente to own a stake in the company as an investment, but to secure an option to buy. And if the review of the Canariaco project by the in-house engineers was positive, then why shouldn't Fortscue want to take his option. Waiting and hesitating only makes everything more expensive. The question of why not just collect shares on the open market to secure a majority. I think it's not that easy. On the one hand, there are certainly regulations to be observed and, on the other hand, the price would rise quickly. Such an Explorer with an MK of €26 million is very tight on the market. If a buyer asks for more than 80 million shares - even if you dose that over months - I think that will certainly raise the price of Candente to over USD 1. However, should a purchase offer come from Fortescue, that could draw one or the other observer from the sidelines into the bidding process. It will be exciting. With its 20% stake, Fortescue has the opportunity to outbid the other bidders by 20% right from the start without having to pay more. So if an external bidder wants to have a chance, he must add at least a 25% premium to the market price. Those are my thoughts on current events.