RE:webinar discussion on copper, Th, Apr 23, 4PM EDTI watched this webcast so I did some research on the company.
-300 millions shares outstanding
-CEO pays himself $240,000 per year or 2% of market cap
-all resources (remember a resource is a deposit that is uneconomic) are calculated on a copper price above $3, one uses $4/lb copper (copper hasnt been above $3 since 2018)...oil was $70 back then, do you want a shale company to tell you their resource based on $70 oil or today's price?
-reports IRR and NPV on a copper price 40% above todays price and a price that has not been seen since early 2018 (this disclosure is in a small footnote) but does not tell you what the IRR would be today. Even at $3.20/lb the IRR was a pre-tax 25% on their main project, when discounted at 7.5% (should use 10%) which is skinny for a pre-tax IRR.
-in 2018 and 2019 spent more than $2MM on IR and promotion and $1MM on salaries BUT NOTHING ON DRILLING or upgrading the resources from inferred to M+I or to a reserve
-cash on hand is enuf to pay salaries and carrying costs on the properties, which by definition are uneconomic at the current price.
It appears they will have to continue to issue more and more stock to pay the CEO and at some point there will be a big rollback.
Do you think the CEO is worth $240,000 per year of shareholder money?