RE: RE: RE: RE: RE: RE: RE: RE: RE: Teck scraping Mudguy wrote:
I do think that the result of this is that CUU is still priced in terms of what the market was pricing projects in 2011 and has been protected from re-pricing by the PP issue. Compare others in the copper sector: explorers, emerging producers, majors- they have all been repriced during the past year to reflect concerns about macro economic conditions. I think there is a major risk of re-pricing to come for CUU, but everyone is waiting for the BFS.
I agree. The comparison of CUU to CUM, as mentioned earlier, is very relevant.
Another striking case is to compare Schaft Creek with Yellowhead's Harper Creek Project, which admittedly is somewhat smaller deposit with a slightly lower grade, but on the other hand it is much less remote (right on the highway, close to Kamloops) and with a much lower capex than Golden Triangle projects. Despite publishing a BFS earlier this year with strong project economics, YMI's stock is languishing with a market cap of less than $40 million, despite their 100% ownership of Harper Creek that has a BFS NPV of $2B at current copper prices. The market is simply not interested in large porphyry copper projects these days, and if Schaft Creek were valued according to the same yardsticks as Harper Creek, CUU's share price could fall to under 20 cents.