Lundin on MINLundin says hold. I say BUY! On better opportunities, I say BUY MORE!
. Lundin says hold Excelsior Mining
2017-01-10 20:40 MT - In the News
Brien Lundin, in the December, 2016/January, 2017, edition of the Gold Newsletter, says hold Excelsior Mining Corp., recently 62 cents. Mr. Lundin said buy four times from September, 2014, to November, 2016, at prices ranging from 25 cents to 38 cents. Assuming a $1,000 investment for each of the four buys, the $4,000 position is now worth $8,805. Excelsior recently released a feasibility study on its North Star deposit at the Gunnison copper project in Arizona. Mr. Lundin marvels at the "eye-popping" numbers. The study pegs the deposit's net present value at $807-million (U.S.) and its internal rate of return at 40 per cent, all after tax. Forecast production is 25 million pounds of copper a year initially, rising gradually to 125 million pounds a year, over a 24-year mine life. Initial capital costs are just $46.9-million (U.S.). In other good news, copper has become an increasingly desirable commodity since the U.S. election, says Mr. Lundin. He adds, however, that copper prices will likely pull back at some point, which could hurt Excelsior's share price. For that reason, he is now recommending the stock as a hold, in hopes of seeing some price weakness that would create a better buying opportunity.