RE:RE:RE:Cheapest Copper Producer on the PlanetSome other factoids....see July 2016 corporate presentation for additional info..
1..El Robe mine was acquired by current management in 2013.ER has been in production for 22 years and is the only VMS cu-au deposit in Columbia
2... Management are highly experienced and own 18% of the stock
3...ER has 6700 hectares of under explored contiguous land package with 10 km of zones very favourable for other VMS high grade cu-au deposits
4..15 targets for drilling identified with only 2 drilled. 2 more will be drilled in 2016.
5..previous operator mined only at the 2000 m elevation
6..3 deposits of very high grade cu-au deposits have been discovered below this elevation and grades are starting to increase
6.. Current resource is 1.86 m tons grading 3.46% copper and 2.3 gms gold
7..since 2013, copper production has increased from 1.5 m lbs to 9.1 m lbs to 12.1 million lbs and to
forecast 18 million lbs in 2016
8..gold production has increased from 2300 oz in 2013 to a projected 12,000 oz in 2016
9. Cash costs have declined to $0.86 per lb so far in 2016
10..3 deposits below 2000 m elevation average 7.5% copper, 7.0% copper and 4.8% copper with gold grades averaging about 2.5 gms per ton
VMS cu-au rarely occur as a single deposit but almost always in clusters..hence exploration upside is highly favourable for identifying other deposits along strike and depth.
At current production rates of 18 m lbs of copper per year and 12,000 oz per year of gold....at current prices...ATY will generate $41 million US in copper sales and $16 million US in gold sales.
All together , in $Cad, this amounts to about $75 million in annual sales per year, with substantial upside as new high grade deposits are placed into production and at lower cash costs
Operating earnings at cash cost of $0.85 per lb is estimated to be about $35 million per year in $CAD.
That is, about $0.35 per share which means that ATY is now trading at just 1.5 times operating earnings compared to peer multiples in the 6 to 9 range.
Great balance sheet, $5 million in cash, and strong growth profile, ATY has it all.
Fair value of about $2 on fairly certain 2016 production, with substantial upside as production increases and cash costs decline