From the yahoo Board on HBMThis guy GUS from the yahoo board is right (Thanks Gus)
So much upside even if metals trend sideways for a breather
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I'm in and luckily along for the ride, having joined HBM after my shares of copper mountain were bought out. I added to my position in HBM as the potential appeared so compelling. Am sitting on substantial profit, but every time I think I should take some off the table, I look at the potential for HBM, and conclude the stock valuation is still way too cheap, with lots more upside ahead. The market is just not pricing in the impact of the very recent $300 per ounce rise in gold price, and 40 cents per pound rise in copper since late 2023. The company was already nicely profitable. Considering fixed costs don't change, any rise in price of the metals goes straight to the bottom line.
with projected annual production over the next three years of 153 thousand tons (306 million pounds) of copper, and 272,500 ounces gold per year, the recent rise in gold and copper will add close to 200 million in cash flow/profit per year, or close to 60 cents per share on top of what they were already earning.
in normal times, PE in a copper stock may not get much over 7 or 8 at peak cycle, because new supply would come on line and drop prices and erode margins.....
but with the long lead time required to bring on new production worldwide, and no new large projects in site to bridge looming huge demand/supply deficit in copper (as current mines deplete, grades decline, demand explodes with greenification of everything, copper price only go up. and icing on cake, plan to triple prod by 2030