Nevada Copper Corp T.NCU

Primary Symbol: NEVDQ

Metals & Mining Copper

Nevada Copper Corp is a Canada-based mining company. The Company is engaged in the development, operation, and exploration of its copper project (the Project) at its Pumpkin Hollow Property (the Property) in Western Nevada, United States of America. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is undergoing a restart of operations, and a large-scale open pit PFS stage project. The Property is located in northwestern Nevada and consists of approximately 24,300 acres of contiguous mineral rights including approximately 10,800 acres of owned private land and leased patented claims. Pumpkin Hollow is located approximately 8 miles southeast of the small town of Yerington, Nevada in Lyon County, one- and one-half hours drive southeast of Reno. The Company’s wholly owned subsidiary is Nevada Copper, Inc.

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Nevada Copper Corp > Let's try a simple valuation

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Comment by Notgnuon May 06, 2021 1:34pm

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Post# 33141811

RE:Let's try a simple valuation

If I were buying today at $1.00 or $1.25 per share and then facing a consolidation at that relative valuation vs underlying asset value I may be a little twitchy but at under 50 to 75 cents I would still be buying more (obviously assuming the market had already valued NCU as such.)

N

Notgnu wrote: For fun let's just say that nobody wants a .5% copper, permitted, drilled, and planned open pit copper property at all .... so zero dollars (as opposed to maybe 1 billion dollars or 50 cents a share.)

Okay, then we have a brand new underground mine that is just starting to mine 2.2% copper at the highest copper prices ever. Well before year end, pobably 3 months before 2022 it will be processing 5000 tons per day, giving an effective annual production of 65 million pounds of copper.

The cost of mining that copper (all in) is $1.86 per pound.

The cash-flow will therefore be (at today's copper price) $2.74 per pound, which equals $178,000,000 per year (underground only

Times that by a 6 X multiple (pretty low) = $1.069 billion

Add in $100 million from warrants = 1.169 billion

Divide by fully dilluted shares (2.3 billion ) = $0.51 per share

Add back the open pit at whatever you see fit and get ???

Am I worried about 26 cent shares going down? Hell no.

Cheers,
Notgnu