Pampa Metals Corp C.PM

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[GUNSS]

#Copper futures at $4.33/lb., +106% from Mar-2020 low, within 4% of the all-time [nominal] high of 2011! Select copper juniors are going to soar. Pampa Metals $PM $PMMCF is completely unknown. It has an C$18M enterprise value, and C$4M in cash. Pampa has a great mgmt. team, board & advisors, I'm not just saying that - check for yourself! It has 8 properties (59,000 hectares in total) in northern Chile. If #copper were at $3.00 or $3.25/lb., this story would be nice, but not sexy. With copper at $4.33/lb. this is super sexy. Why? If copper is going to trade between $4-$7/lb. for the next 10 years (which many pundits [and me] now believe), then reaching for high risk / high reward juniors makes a Metric tonne of sense.

However, one shouldn't choose stocks that have already run 300%-1,000%+. For example, a great Chile story is Los Andes Copper, but it's up +350%. Or, look at Marimaca Copper, +332%, also a Chile copper story, this one with a $480M market cap. It's at PEA stage, so more advanced.... By contrast, $PM is newly-listed and has not had any bullish move at all. Trading volume is still quite low. In my view, it wouldn't take much buying interest to get the shares moving in the right direction. Furthermore, one doesn't necessarily want to buy shares in companies with flagship copper projects in places like Indonesia, the Philippines, Russia, Chins. Pakistan, the DRC, or Mongolia.

Chile has its share of risks, but they're well known. The main risks are 1) water, 2) elevation, 3) community relations, and 4) COVID-19. Pampa Metals does not have an elevation problem, its 8 properties are between 1,000-3,000 m in height, and COVID-19 (currently kinda bad in Chile) should play itself out over the next 6-12 months. That leaves water & community relations. According to MineSpans analysis, by 2028, 62% of Chilean production is expected to come from mines using desalination plants. Think about that for a moment, when Pampa Metals needs to get water rights in the 2nd half of this decade, there might be available water supplies as legacy production using local fresh water is replaced by new mines using desalination. Perhaps they could get half of the water on onsite and half from the ocean (desalinated). Of course, if Pampa has to use desalination, then they will pay up for it, (a lot) but it's not a project killer.

If $PM is smart they will look to share the cost of a desalination plant with other developing copper (and lithium?) projects..... So that leaves community relations, which can be the hardest challenge to manage. They've been at it for years, and so far so good. One nice discovery hole is all we need to get more eyes on this story. $PM has C$4M in cash, much of it earmarked for drilling. And, they recently signed a farm-out agreement on 2 of their 8 properties. So, those 2 properties will be drilled this year and next. Finally, even though these 8 properties are early-stage, once drilling starts they're actually a few years ahead of any company looking to start a green field project (finding land, negotiating an option or purchase, finalizing the transaction / getting all approvals, beginning talks with local communities, permitting for exploration / drilling, etc.).

https://epsteinresearch.com/2021/04/22/copper-in-chile-cashed-up-pampa-metals-drilling-for-new-discoveries-in-the-shadow-of-giants/