RE: Bullish openMore likely Jason Hommel pumping again this morning to his readers;
"Double your money quick, in Baja Mining.
(Longer term, make up to ten fold.)
Baja Mining (BAJ.TO, BAJFF.PK) --symbols work at Yahoo! Finance for price quotes.
https://www.bajamining.com/
108 million shares outstanding
34 million warrants and options
142 million shares fully diluted
@ $1.71 /share Cdn x .91 USD/Cdn = $1.56 USD
= $220 Million Market Capitalization, USD.
Baja needs to raise $500-600 million to start mining.
Baja can make $700 million or more each year.
Baja has a forward P/E ratio of $220/$700 = 0.3!
Baja can pay back capital in less than one year of mining.
Baja owns a copper/cobalt/zinc project in Baja, Mexico. They should be completing a bankable feasibility study right about now. This is a late-stage project, still priced at early-stage exploration levels.
I believe investors should aggressively buy Baja Stock up to $2.50 Cdn.
I believe Baja would be wise to raise most of the money to start mining at about $3.50/share.
Long term share price outlook, if copper prices merely stay at $3.50/lb.
$25/share.
If copper prices double again, to $8/lb., the share price could be
$50/share.
Baja Mining's annual production may be at about the following:
132 million pounds copper/year @ $3.75/lb. = $495,000,000/year
6.8 million pounds cobalt/year @ $30/lb. = $204,000,000/year
79 million pounds ZnSO4 slat (a zinc byproduct) /year @ $1.20 (about 75% percent of the zinc price of $1.60) = $95,000,000/year
Total operation costs are approximately $65,000,000/year
EBITA would be about $729,000,000/year (at today's prices)
Cash flow would be about $800 million / year.
Baja already has 19 investment banks ready to hear their investor presentation, and ready to loan them money. But above $2.50/share, Baja Mining may consider issuing shares to raise the money, instead.
This is a clear indication from the company, that it is safe to buy the stock up to $2.50/share, without the company issuing shares in a private placement below that level.
For more information on Baja, see the company web site, or the following 5 minute video presentation from April 26th:
https://www.bajamining.com/investors/media_coverage/
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My investment philosophy for Baja Mining:
Copper prices have exploded in the last year, at the same time that copper inventories have nearly run out.
The recent dip in copper prices for 8 months reflect the fact that China stopped buying copper on world markets, to live off of their own inventories. Three months ago, China started to import copper again, so copper inventories are dropping, and the price is headed back up.
The opportunity is that share prices of copper projects have not yet reflected this move in copper prices--from last year! And they certainly do not anticipate copper prices continuing to move up. And when they do, the right stocks, like Baja Mining, will explode in price.
Part of the reason I like the base metals right now, is that they are signaling the failure of our monetary system. See my essay from yesterday, Fraud vs. Truth. And this is great for silver.
And, of course, I like silver even more.
See, I like silver, because silver is scarce, and because I know inflation is running out of control.
But the public does not know that inflation is out of control.
But the public will know that inflation is out of control when things like zinc, and copper, and uranium (well not uranium, because the public does not buy uranium), continue to go up, up, and up.
High gas prices are also helping the public to wake up, but clearly, the public is not yet feeling the pinch at the gas pump, or they'd be buying more gold and silver.
Similarly, the zinc and copper booms have not yet gotten to the point that there is any emergency alarms about inflation raised in the public consciousness.
The public is still asleep, because net silver demand was a mere 60 million ounces last year, which was worth 0.005% of M3's $12 trillion.
See, the public will not "rush" to buy silver because of some little newsletter like this one.
In the meantime, between now, and when much higher copper (or the price of SOMETHING) prices start to cause real pain, we can make huge money in copper stocks that have not yet reacted to copper's price moving above $1.30/lb. (Copper is now $3.50/lb.)"