DNT PEA COMING SOON; $5 CU IS COMING; FAIR VALUE $1.55/SHARE There is a new PEA coming out soon and it may show a much smaller CapEx and OpEx than the 2011 study which could be a game changer for this company in many ways.
This new PEA is very appealing to various interested parties including the Peruvian Pension funds as they would like the project to move forward to production. The pension funds are said to help contribute ~50% of the CapEx costs if the new PEA is under a certain threshold. There are many large players interested in Candente’s property as it holds over 9 Billion pounds of copper, has 2 more discoveries in the making and the economics are robust; some of these parties scooped up claims all around Candente about 1-2 years ago and they all have the means to buy Candente for a fair value.
The fair value of Candente is said to be around $1.47/share taking into account Candente Norte only. There is a very good comparison between Josemaria and Candente Norte on stockhouse.com. Josemaria was bought out by Lundin Mining for $1.60/share in December 2021.
There are also smelters waiting for the PEA results from Candente as they too would like to talk. Fortescue on the other hand is already talking and invested in Candente by acquiring a 19.9% stake in the company in 2021. Fortescue is a key player that would be very interested in acquiring 100% of Candente which is evident by their surrounding claim purchases.
Candente will grow their copper resources beyond 15 Billion Pounds and with the price of copper heading to $5+/lb, the EV market gaining huge momentum, all the building and refurbishing required in the world, copper is the metal that is required to make it all happen.
Over the past 10 years significant copper discoveries have been almost non-existent and large copper producers are quickly depleting their resources, they need more copper, they don’t want to guess and search for it, they want a sure thing, a company that has it, and Candente has proven they sure do have it and lots of it. What price will they pay? We will have to find out.