GREY:NEVDQ - Post by User
Post by
Schmobyon Aug 15, 2016 9:19pm
92 Views
Post# 25144375
Equinox Minerals comparison / Nevada Copper
Equinox Minerals comparison / Nevada CopperI haven't posted much over the last few years on SH. Generally just follow the posts etc.
I used to be a shareholder of Equinox minerals about 10 years ago at $1.20/share and maybe $150m market cap and held it right up until it was bought out by Barrick Gold in 2011 for $7.3B.
I watched that company define and expand the resource and finance Lumwana over that time. There were so many ups and downs I cannot list all of them. A huge twist just before they went live and energized the power system it caught on fire and exploded, delayed the mine by something like 4-5 months because it is one of a kind type of equipment that needed to be remanufactured and shipped.
However, what I wanted to point out were the uncanny similarities between EQN and NCU.
EQN had 4.5B lbs CU
NCU has 5.05B lbs CU
EQN/Barrick mined 287M lbs of CU @ cash cost of $2.42/lb (2015) & $1.80-2.10/lb 2016
NCU Year 1-5 275M lbs of CU @ $1.49/lb and $1.76/lb LOM
EQN was in Zambia/ Higher political risk
NCU is in Nevada/ Much lower political risk
I see NCU producing at a lower cost in a much safer jurisdiction. If they can figure out the financing without diluting the heck out of the shareholders and copper rises somewhat this project will be very valuable and profitable and rewarding to the shareholders. EQN did a lot of diluting but still did very well for the shareholders. They will be bought out once they get it off the ground guaranteed.
Anyway just my observation and opinion but the projects a very similar except I actually think this one is better!