RE:Analysts estimatesAll,
HBM is a pure copper play and its valuation is based on the price of copper. For every 10 cents rise in the price adds (150,000tons*2205pounds*0.10) $33M in annual EBIT. Tax it at 25% and $25M to the bottom line.
This translates into $0.07 cents a share.
- What multiple will be applied going forward? 10, 15 or higher?
- The multiple will eventually be based on the reserves they can unlock going forward...
- Higher prices in Gold, Silver, Moly and Zinc will drive the cost for pound down.
I have been hear a long time waiting for that moment that the OMG moment...
Unlike oil plays copper mining is concentrated on a few large mines that have been stripping away the highest grades in order to stay financial viable but grades are dropping, new mines are not coming on line, mines are being closed, future production volumes reduced...
Reserves are not just what is above ground but also what s below and with the price a copper being kept at an artificially low price for such a long time, it has forced the miners to extract what should have been kept in the ground to maximize the ore extraction.
Will 2024 be the OMG moment?
Have a Happy and prosperous New Year
GLTA