Nevada Copper Corp NEVDQ

Metals & Mining Copper

Nevada Copper Corp is a Canada-based mining company. The Company is engaged in the development, operation, and exploration of its copper project (the Project) at its Pumpkin Hollow Property (the Property) in Western Nevada, United States of America. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is undergoing a restart of operations, and a large-scale open pit PFS stage project. The Property is located in northwestern Nevada and consists of approximately 24,300 acres of contiguous mineral rights including approximately 10,800 acres of owned private land and leased patented claims. Pumpkin Hollow is located approximately 8 miles southeast of the small town of Yerington, Nevada in Lyon County, one- and one-half hours drive southeast of Reno. The Company’s wholly owned subsidiary is Nevada Copper, Inc.

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Nevada Copper Corp > Margin Requirements

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Comment by Notgnuon Apr 19, 2021 3:00pm

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Post# 33023194

RE:Margin Requirements

Thanks Arb. I am also with a smaller broker with a similar margin qualification structure. I also have some counterbalance equities that are pretty stable and use them for leverage. My brokerage tends to allow some flexibility when I stay in contact with them about what is going on but in general yes, I too have had trades denied on the basis of "concentration."

They don't like it but I have bought a few equities, levered into NCU and resold the others... generelly means a 5 minute phone call to get an exception to the rule but they are always reasonable about it.

N.

Arbourmark wrote:
I agree Notgnu that if reverse consolidation brings share price above above $2 cdn it will qualify for margin.

My Canadian brokerage offers the following margin on TSX listings:

SP above $5 qualifies for 70%
SP above $3 qualifies for 50%
$2.01 to $3 qualifies for 40%
Less than $2 qualifies for Nil

Same terms for Nasdaq and NYSE

I will tell you from experience that it you have a concentrated single position say solely in NCU, many brokers will not offer margin or will greatly reduce.

Concentration become a huge red flag for most brokerages. I have a heavy concentration of 50% of my portfolio that had a share price of $15 and qualified for 70% based on above criteria but brokerage was concerned about concentration and reduce available margin to 25%.

On another occasion I held only one stock so 100% concentration and it qualified for 70% as outlined above but initially they denied margin due to concentration risk but I finally was able to get 12% versus 70%. If you are with one of the big 5 banks this will be a major issue hence why I use a smaller broker who are more flexible.