Bought some yesterday for a trade...
Looking at some due diligence to see if its worth holding, I conclude:
(1) Fully diluted market cap to typical annual cash flow is about 5.5 to one. Should be better for 2009 assuming the meet the targets. Not sure what price copper, gold, silver this is based on. Its straight out of the May presentation. Can anyone give me an adjusted value given current metal prices? Anyway, the 5.5 to one seems ok, but isn't dazzling.
(2) The copper exploration isn't going all that well.
(3) The nickel exploration is going just fine, but they need to do a deal with a really big player who will probably be looking for a really good deal.
So, is this basically a lottery ticket with limited downside as we wait to see what happens to the Nickel?
Monty