Target price on Marimaca I have seen people shoot all over the place here, from 15$ to 150$. Consider 3 elements if you please:
- We are in a perfect macroeconomic environment for sure. The price of copper is at an all time high. Investors, banks, economists alike agree that we will see 6$ copper in the medium to longue term it will happen at this rate. I don't need to explain the demand drivers here we all know them by now. Add to that the supply shortage the deserted fields of greenfield discovery in the last 10 years, the grade drops, the fact that companies have to spend more to go further, higher more dangerous jurisdictions.
- Now for the microeconomic environment oxide targets that is where the big money is cheap to extract and most bang for your buck. We have the MOD then you got 4 more targets Mercedes, Cindy, Emilia and finally the new very exciting big addition Roble. That is without counting the targets in the south ...
- Next the sulfide targets, if we hit sulphide in the 5 we are starting to talk about a huge project. Almost shovel ready that is if they can advance it in the next year.
how much will a big miner pay for that? Low capex, close to infrastructure, low strip ratio, AISC 1.29$ maybe lower. I think a premium should be considered here maybe a bidding war like in the real estate market...
So how high do you think this will go if we meet all those requirements?
CG