RE:Good dealLooks good for the long term and increased Cu values coming. More later.
he Globe and Mail reports in its Wednesday, March 29, edition that Desjardins Securities analyst Jonathan Egilo has reaffirmed his "buy" recommendation and $3.25 share target for Copper Mountain Mining. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $2.67. Mr. Egilo concedes that Copper Mountain has "disappointed operationally as of late," but he thinks negative investor sentiment is now "adequately baked into the shares" given its current valuation. Mr. Egilo says in a note: "Copper Mountain could outperform the peer group if 2023 delivers the forecast FCF inflection. Thus far through 1Q23, operations have been performing on budget. Management forecasts Cu recoveries of 84 per cent on average over the full year, with gradual quarter-over-quarter improvements on the back of last year's mill improvements. We had previously modelled 85 per cent (now 83.8 per cent), below the 88 per cent in the August, 2022, tech report. While management indicates it expects 2024 recoveries to exceed 2023 levels and approach the target 88-per-cent level, we are taking a more conservative approach and model long-term recoveries peaking at 85.5 per cent."