stockwatch Globe says Copper Mountain goes with a bird in the hand
2022-10-13 07:57 ET - In the News
The Globe and Mail reports in its Thursday, Oct. 13, edition that Haywood analyst Pierre Vaillancourt has boosted Copper Mountain Mining to "buy" from "hold." The Globe's David Leeder writes that Mr. Vaillancourt gave his share target a 25-cent boost to $2.25. Analysts on average target the shares at $3.27. He says the sale of its Eva Copper project and its exploration land package in Australia strengthens its balance sheet and "reduces risk." He says with the sale Copper Mountain makes a short-term gain, but loses out on a potential long-term opportunity. Mr. Vaillancourt says in a note: "The Eva project was fully permitted, with a feasibility study that could have led to the construction of a mine with comparable production to Copper Mountain. In addition, the surrounding 4,000-square-kilometre Cloncurry property offered a number of prospective targets, some of which could have been satellites to Eva. The feasibility study for Eva featured an open pit mine with annual production of 1.5 million pounds at a C1 cost of $1.44 (U.S.) per pound over a 15-year mine life, starting potentially in 2024, for a capex of $443-million (U.S.). This production profile would have tripled CMMC's current attributable production."