Three Valley Copper Corp V.TVC.H

RE:TVC an undervalued and forgotten operating mine

[nickbillfish]

nickbillfish wrote: True TVC hasn't been a good stock investment till now but seems to be forgotten by Mr Market.  TVC is an operating mine not some project, over $300M in todays dollars were spent developing it..   I'm seeing a lot of negative people post here that have no facts.   I'm happy to debate as a long time shareholder.  Maybe due your due diligence and see that TVC just started caving operations after a lengthy construction phase on a 85% proven, not probable resource of 101 Million lbs of copper with grades of 1.51% some of the highest grades you can find.  Also forgotten is  block caving is one of the most efficient, environmentally friendly and capital costs are in the construction not ongoing mining.  The mining or extraction  is downhill from here.   Cash costs are expected to drop to $1.66/lb but I'm guessing more like $2/lb as that was an old study.  Copper is at $4.70/lb today, you do the math on profit potential.

TVC has potential to be a 1000% multi bagger depending on what's agreed with the lenders in the coming weeks.   No guarantees but looks promising as the lender has rights to 100% of the offtake.  Facts:

1.   Newly completed on time on budget block caving project in Papomono with over $20M spent.   Mine is ready to tap into its 101 Million reserve that is 85% proven not probable at a grade of 1.51%.
2.    Proven management and Board of Directors mostly picked by Sprott.    Still big ownership by big players Sprott Asset MMCAP, Rick Rule and I think legendary investor Kevin Bambrough.  Just signed up reputable Bacchus Capital to move the mine forward with finance or JV partner.  Bacchus has a long history in Chile and senior management worked at Anglo.
3.   Over US$300 Million in today's dollars spent building this mine from Vale to Sprott.   TVC is a working mine with daily crusher capacity of 5,000-6,000 tonnes feeding into a 18,000 annual tonnes cathode plant with newly upgraded salt leaching reducing production time be 40%.
4.   Already identified additional resources that can easily increase reserves to over 500 Milliom pounds.    Ie. drill results below Don Gabriel have 2% copper and additional new prophery found between the two mines Papomono and Don Gabriel suggesting they are connected.  Not a technical expert but suggests a larger block caving operation.
5.    Local workers who are skilled and the success of the mine is very important to the local town, plus TVC is an environmentally friendly mine.
6.  Additional third party ore being supplied by local miners and ENAMI.
7.   Sure it has $80 Milion in debt but should be largely debt free in 1.5-2 years at current copper prices.
8.    Major financing partners in Anglo American and Kimura Capital who are supportive of current management.   Anglo American is a billion dollar corporation, sure they obligated to sell another 3,500 tons at $2.89 but after that it's market prices.
9.  Mine was bought for US$40M for a 70% share in 2017 when copper was mid $2 range.  Now TVC owns 95.1% with copper at $4.70 and over $40 Million since then upgrading the mine and building Papomono block caving.
10.  46,000 hectares of land of which less than 10% being explored.  Numerous spots already identified showing similar characteristics to existing mines.
11.   Papomono profits should largely be tax sheltered as they have over $250M in tax loss carry forwards.   Management can limit production to be under the proposed royalty tax.
12.  The lenders signed off on the new optimization study and remember TVC raised additional funds in the last bought deal to bring forward and build additional extraction points so ore extraction can't be interrupted.
13.  With Russia's supply of 3% of worlds copper being impacted, copper can go over $5/lb easily.
14.  View the Twitter video TVC put out on the just finished Papomono mine and like they state at the end of the video "stay tuned".    https://twitter.com/3valleycopper/status/1501955494373740545?s=21
15.   TVC has a market cap of around C$9M, look at Los Andes Copper ticker LA, has a $2B resource only drill results, low grades and need $2B in capital but trades at a market cap nearly $500M.    TVC should easily reach a market cap of $150M to $200M or a share price of mid $1 to $1.75, a big increase from $0.07 if it works out.

Due your diligence but TVC is one of highest risk to reward here on the TSX venture in the near term.

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Even if forced into liquidation, MTV can be sold off or parted out exceeding the $80M owed.   Still unlikely to happen but you never know.   95% of proceeds go to TVC.