Alta Copper Corp. T.DNT

RE:Harmony Gold acquires Eva Copper for $170M USD Plus Plus

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eartotheground wrote:
This was posted on another site but it really gives weight to what Candente has in the ground and how much they are worth. Excellent write-up! and Candente is much much larger!

Hi guys, this is my first post here. I usually post in other forums. I think you have seen that Copper Mountain Mining Corporation $CMMC has sold the Eva Copper project to Harmony Gold $HMY for $170 million + contingent payment of up to $60 million.

https://www.newswire.ca/news-releases/copper-mountain-mining-announces-agreement-to-sell-the-eva-copper-project-and-the-australian-exploration-tenements-for-total-consideration-of-up-to-us-230-million-858295813.html

Can we make a comparison with Canariaco Norte? Absolutely! It is a good way to quantify the real value of Candente $DNT. The biggest differences are that a) Eva Copper is in Australia, so it's a different jurisdiction b) the feasibility study is already done and c) Eva Copper is almost a quarter the size of Canariaco Norte.

Let's look at how many cents per pound of copper was paid and what that might mean for Canariaco Norte.

As sources I use the data from the NI 43-101 TECHNICAL REPORT FOR THE EVA COPPER PROJECT-FEASIBILITY STUDY UPDATE which can be found here https://cumtn.com/site/assets/files/3661/ni_43-101_eva_copper_fs_update_final_07-may-2020_2.pdf

In addition, these pages are also helpful https://cumtn.com/operations/eva-copper-project/overview/ and https://cumtn.com/operations/eva-copper-project/overview/

Data on Canariaco Norte can be found on Candente's page. It is best to take the most recent presentation, e.g. https://candentecopper.com/site/assets/files/5601/dnt_ppt_sept_28_2022.pdf.

In the table I have summarized all essential data. I only focus on the Canariaco Norte copper resource.

I also leave out the gold resource, although Canariaco Norte has comparatively more of it. Canariaco Sur and Quebrada Verde I do not consider at all.

I have adjusted the Canariaco Norte resource because the cut-off at Eva Copper is 0.17%. Advantageous for the comparison is that Eva Copper also expects a copper price of USD 3.50 per pound. Interestingly, Ausenco is mainly involved in the NI 43-101 TECHNICAL REPORT. As you can see, Harmony Gold paid USD 0.0703 for a pound of copper in the ground. That is quite a lot in my opinion.

If you apply that to Canariaco Norte you get about USD 640 million, which equals about CAD 878 million (at an exchange rate of USD/CAD 1.37). Per Candente share $DNT this means 2.93 CAD (with 300 million shares fully diluted).  Now one must still consider discounts because of the jurisdiction and the already finished feasibility study.

However, markups should not be forgotten either: Canariaco Sur and Quebrada Verde already have a certain value, even if it is not so well quantifiable.

Man, every copper project on earth is worth more than Candente???