RE: RE: MM'sDNT is a Peruvian copper play. I think you have to take into account differences in country-specific risk.
Peru will elect a new president in a run-off on June 5th. The choice is between
"Ollanta Humala, a former army officer with zero government experience backed by the far left, and Keiko Fujimori, whose father is a conservative ex-president serving a 25-year sentence for human-rights abuses and corruption."
Humala is purported to be the front-runner. He has struck a resonant chord with Peru's disenfranchised poor by indicating he would nationalize certain industries, take over private companies and increase taxes in the mining sector.
Chances are he will win. He might not be able to form a majority government, so his agenda might not be implementable in its entirety. He has apparently toned down some of his comments, but it is not clear if this is a sincere change or one fabricated to increase his chances of winning a majority. Maybe even one can question if his agenda is sincerely stated, but that is a stretch.
So... there is a lot of political uncertainty at this point and that is one reason why DNT and the Peruvian markets are in at least a short-term down trend.
Copper Fox has a lower country-specific risk, being a play on a Canadian resource. The government of BC wants the development to replace jobs lost in the forestry industry and to bring in government revenues. The Tahltan nation wants development on its lands. Serious companies like
Altagas are investors in infrastructure. There are large entrenched interests like Nova gold that want to proceed with development.
Additionally, as vette, webgogs, etc. and CUU's management have indicated, the potential to expand the deposit to a richer and higher grade and multiples of the current size is highly likely.
A
clear takeout target if there ever was one. Since the insiders are majority owners and continue to increase their stake in this company, the takeout, when it occurs, will be fair to existing shareholders and likely much higher than the current price.