CANDENTE COPPER IS IN PLAY!!! The copper price is irrelevant to the value of the overall company. Copper prices go up and down and all around but everyone knows that copper is heading for a massive deficit so it’s going north of $5+ eventually. Even if the price of copper was $5 right now Canariaco isn’t producing so it can’t benefit from it, so again it is a non-issue. The real issue is the billions of pounds of copper up for grabs that can’t be ignored!
The billions of pounds of copper DNT has are worth 3-6 cents per pound. Right now they have 14 billion pounds. At the low end they are worth $400 million. The more copper they find from drilling Sur and Verde will only increase the value of DNT. They could reach over 20 billion pounds of copper and that is just an insane amount for one project. At 20 billion pounds the low end is $600 million valuation. DNT is trading at $35 million which is peanuts. Instead of collaborating with Candente, Fortescue is choosing to play hardball which is sad and kinda seems more like an eighties-trip ego move but each to their own as it is business and there are no rules in business.
Mining countries have been so very shortsighted when it comes to their political pageantry promises. Promising to tax mining companies more to benefit from the high prices, even talking nationalization when all they were doing was stifling investment. Imagine suggesting to tax a company more just because a commodity is increasing in price, they must have failed economics that’s why I guess they became politicians. Now guess who suffers from lack of investment, the people of the mining countries, so sad but true. All the tax revenue lost for nothing. Encouraging investment which will bring in the tax dollars required to help the population is the answer but politicians make lofty pie in the sky promises to win votes.
Even the large mining executives are flaccid when it comes to seizing an opportunity. They all know they need more copper but they just sit on their hands instead of taking action. They’ll complain about the price of copper when it’s too high because they don’t want to pay a premium, then they complain the price of copper is too low and they get scared to take action. Oh so typical and oh so boring. These high power executives need to check their egos at the door and make an intelligent decision.
Consider this, Candente could develop the project themselves and then pocket all of the profits. By doing this they could create a huge company and then once established begin considering M&A possibilities which could then make them a mining behemoth. Maybe a dream but heck it could happen? More realistically, Candente sells or partners with a company and that’s that. Candente made it to first base with Fortescue’s initial buy-in, second base with Lind and FMGs second contribution and now they are on our their way to third base. Negotiations will happen, Candente will over reach, Fortescue will low ball, the dance continues and then the crescendo, everyone agrees and shake hands. Home run achieved.
I will not be voting for anything less than 3 cents per pound because Candente Copper is worth at least that and that is a fact.
The board the board the board, they are not the Borg and can’t just assimilate everything and everyone especially the shareholders.
VOTE People Vote!
The game is afoot!