RE:Los Andes Copper Corporate UpdateExcellent news. Here's my take.
Firstly, the new executive chairman controls 53% of the shares of LA.V so their interest is aligned with shareholders and that’s why I personally think they have huge interest to get top dollar for ultimately selling the company. So this is not like other companies where insiders want to remain and collect salaries.
But that said, BIG thing for me is that they have enough drill results to complete the PFS. Meaning, if they can’t do anymore drilling (worst case scenario given the ridiculous rabbit/cat environment news last week), they can still finish the PFS and that will make the discount to NPV that it is trading at much less. Should make it go to 50% discount to NPV after PFS is complete. Which is around $45 per share at 50% discount at $3.50 copper if my math is right.
If they can continue drilling (get the environment injunction lifted in short term which they are addressing), there is a chance of them hitting on the new drill zones to make it multiple of what they have. So as is, it’s still a 3 bagger from where the share price is now (again at $3.50 copper). At $4 copper I think it could be $75 to $90.
The other item not addressed in the corporate update news is the prospect of uplisting to senior exchange which the CEO has made clear is a priority - the senior exchange listing (once it happens) will also make m&a discussions easier and bring in more institutions and liquidity (though the float will always remain tight given the founding family own 53%).