ACT 4 - Canaccord Wealth ManagementGreat read from Canaccord recently:
Canaccord Wealth Management
Morning Coffee – Canadian and U.S. Comments for Friday Nov. 25, 2011
Market Movers
Candente Copper* (DNT : TSX : $1.26), Net Change: 0.02, % Change: 1.61%, Volume: 71,300
Who's down with DNT? Yeah, you know...Candente Copper updated the market on the impact of a new Peruvian mining tax on its Canariaco Norte copper project in the country. An assessment of the new tax rate confirms that the project continues to have strong economics.
Engineering firm AMEC completed an assessment of the new tax and modelled it against its latest financial model from March 2011. Under the new rates, the after tax NPV is $912 million, with the IRR and payback period being 17.2% and 4.4 years, respectively. This is compared to a NPV, IRR and payback period of $1.063 billion, 18.8% and 4.2 years from the last pre-feasibility study.
DNT is currently working on a full feasibility study in which four different production rates were evaluated which considered the impacts on mining, processing, ancillary facilities, water balance, project footprint and project financials including capital and operating costs. Based on the analyses, a larger SAG mill and larger ball mills will be incorporated into the Canariaco Norte process plant, specifically a 40 foot diameter SAG mill will be used. Candente has significant drilling programs planned for the Canariaco project.
Exploration drilling is planned for the Canariaco Sur area where drilling, by Candente in 2008 and prior to Candente's ownership, by BHP Billiton (BHP), identified the presence of a significant copper-gold porphyry system. The exploration drilling is planned to test for lateral and depth extensions of the Sur system.
Shares of Candente have been buoyant of late as Polish copper giant KGHM Polska Miedz commented that they would be looking to acquire a N.A copper developer based in Canada. In their recent earnings release the company’s chief financial officer Maciej Tybura told reporters, "In November there will be a decision in relation to the large acquisition, whether we'll buy or not," as reported in Reuters.
GMC
DNT...DNT...DNT!!!!