MARI - two news releases ... & market thoughts.From the same contact. I found very useful. Hope you do to.
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Hello,
Just a short update to cover two recent Marimaca news items, along with some brief thoughts on the market :
- News release 1, Positive Metallurgical Results - for the full news release Click Here. In short these are further very positive metallurgical results. These results are a component of the ongoing Phase 4 Metallurgical program, which are enroute to taking this critical line item of the project to a bankable level. The study consisted of 412 composite samples across each of the 5 mineral zones. The results demonstrated "uniform metallurgical uniform behaviour within each mineral zone when considering acid consumption and copper recoveries".
- News release 2, COO steps down - for the full news release Click Here. This news should be seen as a natural evolution of the management team. The COO Luis Tondo had previously been CEO, and had been moved sideways by the appointment of Hayden Locke. His historical knowledge base is very useful, so it is good to see him retained as a consultant. However, as we continue to move towards a bankable feasibility study on the Marimaca Project, the Company will start to put in place a team that can build the asset. This news should be seen in that context
- Market weakness, thoughts - Marimaca Copper's share price has been weak recently. This seems odd, especially against the positive news the Company continues to deliver, and the continuing strength in the macro copper story. However it is worth reflecting on the fact that we are seeing this to some degree across the mining / copper space. Even with the large copper producers that will be making large cash profits at this spot price, we have seen equity prices pull back from their highs - Freeport, now $26 per share, down from $36, down 22%. First Quantum, now $26 per share, down from $35, down 26%. Lundin Mining, now $10, down from $16, down 37%. I think this context is important. My personal opinion is that this is a natural pull back within a larger structural bull market. Many may forget, but throughout the 2000's, even though we experienced one of the most dramatic bull markets in metal price history, pull backs of this nature were common and often brutal. This market behaviour is one reason why when investing in junior mining equities you have to have a very strong belief in the intrinsic value of an asset, throughout the cycle. To have this level of conviction can be rare. With Marimaca I have it in spades (pun not intended!).
All the best !