RE:RE:RE:Financing
mferguson71 wrote: What do you think their upside is capped at nickbillfish? In my opinion the cap all depends on time frame. The longer it can produce free cash flow and expand resource the higher the potential it has. The shorter the time frame the company doesn't have time to explore their property and pay down debt. But the longer the time frame the more replacement cost of their infrastructure will be which will add some value to the company.
In the next 1-2 years I'd say capped at c$1-C$1.5. You have 70 Million warrants plus whatever management awards itself that will come on market. However with the new US infrastructure bill passed, that's a lot of copper needed, so depends. The original case for Sprott was based on $2.90/lb of copper.
Once they get the $70 M in debt paid off, work through the 40% remaining they need to sell at $2.89/lb, ,resolve the Vecchiola arbitration, prove out the reserves of the prophery deposit that connects Don Gabriel and PMM and Chile figures out it's royalty tax. I'd say if all goes well and PPM delivers 100 Million pounds at a profit of $2/lb +, the potential like you said is unlimited after 2023.
They initially raised money to buy 70% of the mine for US45M and issued warrants equivalent to C$6.66 that are expiring in February I think. Tells you the potential Sprott saw.
My hunch this will do well is based on Valle spent $250 Million developing this mine, they must of seen something. Just Valle, Sprott and TVC's timing has been bad till now.
No reason this shouldn't have a C$400-500 Million market cap in 3-4 years based on the value of other mines if all goes well and they can raise reserves from 194 million to well over 500 million pounds. I read Don Gabriel has good potential already identified below the current mine.
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