fantastic news I am new on board since Jan 22 release, on La Apreciada results.
I was blown off about the quality on reserve. With RNG almost 20% owner of CHD, with copper grades of 2%-4%, the market will start boosting this share price in the 1.40-1.50$ range imo.
There aren't many HIGH quality (since costs/tonne are obviously much lower hence much more profitable), big tonnage copper project in the World. Most of them are very low quality, high tonnage like EQN. The market obviously values much more HIGH quality projects (e.g. AVM new 52 week high!) WITH increasing reserves (Very important).
My opinion is CHD should be closer to 2$. It warrants at this stage a 500 million$ market cap (not 190$ M!!) since this project is a go obviously with this type of reserve. Also I love Peru. It will be transitioning from exploration to producer in the next 12-18 months which always shifts valuation a fair notch higher.
Most of projects I see are very poor grades. It wasn't the case 4 years ago. Now, I see many 0.5% max Cu grades!!!!!!!!!!!!!!!!!!!!!!!1
humm, I think the low hanging fruit may be soon gone thus keeping Cu prices much firmer than many would think at leas till 2010 when big players get new supply on board.
cheers