ALTA COPPER - FORTESCUE EYES DEVELOPING ITS COPPER ASSETSCopper has been steadily rising because the world is beginning to understand that copper is the "must have metal" and it is in short supply. Copper is required for key infrastructure projects (power plants & power lines), vehicles (ICE & EV), cell phones, computers, military applications, aerospace, it’s practically everywhere.
As the world speeds up the electrification process and upgrades old and failing infrastructure, copper is going to be required in great quantities. China and India require vast amounts of copper to supply their population (1.42 billion and 1.43 billion respectively) with electricity which powers homes, businesses, factories and all the electronics of the information age (cellphones, computers, quantum computers)
Fortescue’s founder Andrew Forrest has said that copper is one of its top priorities which is clear by their 31% strategic investment in Alta Copper’s Canariaco project in Peru. Fortescue states
“we are focused on advancing the Canariaco project in Peru.” With Fortescue’s sight set on copper, Alta Copper is a top choice to be acquired.
Alta Copper is set to release an Optimized Preliminary Economic Assessment by Ausenco and Whittle Consulting soon and if rumors are true, the Canariaco project could be bigger and more economic than it already is. Alta Copper has already discovered 16 billion pounds of copper which cannot be ignored by the mid-tier and major producers.
Reuters: Andrew Forrest talks copper while in Beijing on March 23, 2024 Australia’s Fortescue, the world’s fourth-largest iron ore miner, is looking at developing its copper resources but has not made a decision yet, its founder and executive chairman told Reuters on Saturday. “The company has choices in front of it … we have a lot of copper options on the table. And when we feel the time is right, we’ll pull the trigger,” Andrew Forrest said during a visit to Beijing. In February 2023, Fortescue said it would focus on copper, rare earths and lithium while ramping up exploration activities for critical minerals portfolio. Copper prices CMCU3 rallied about 13% from early February, touching an 11-month peak of $9,025.5 on Monday, before pulling back on Friday amid a stronger dollar and profit taking. The trigger for the latest price jump was news that major top Chinese copper smelters reached an agreement to lower operation rates at some loss-making plants after their margins were squeezed amid a tightening supply of raw materials. Foretescue will continue to invest in iron ore, a steelmaking ingredient, as demand from renewable energy and the manufacturing sectors will grow, Forrest said. “There’s always ups and downs, but the trend is still rising…we’re seeing China growing from an emphasis on infrastructure to a dual emphasis on infrastructure and manufacturing.” Fortescue eyes developing its copper assets There are limited choices available when it comes to economically viable copper projects. Major mining companies are only interested in copper projects that are of large scale and can be developed economically with the best environmental and social practices. Alta Copper’s partnership with Fortescue is hands down a perfect fit as Fortescue is focused on lowering emissions and is an outspoken leader of green energy.
Alta Copper’s Canariaco project is rated in the top 10 for size and grade globally. Alta Copper has already discovered two resources (Norte and Sur) which can be developed immediately. There is a third porphyry target (Verde) in close proximity that has strong potential to add further to their already massive copper resources. Drill permits have been submitted and are on track for approval. Alta Copper was recently invited to meetings with Peruvian government authorities to discuss the proposed development of its advanced stage 100% owned Caariaco copper-gold project.
“Giulio T. Bonifacio, Executive Chair of Alta Copper, commented: “We are very pleased with the meetings held with Minister Mucho together with his technical team and other high level government officials to discuss the development strategy for the Caariaco copper project with respect to the recently submitted drill permit and optimized preliminary economic assessment to be published in April that will reflect a project that will reflect an annualized production profile of significance". Alta Copper meeting with Peruvian authorities Copper companies similar to Alta Copper have been bought out from anywhere between $400 million to $800 million.
Alta Copper is clearly undervalued and offers a 10x to 20x opportunity. Alta Copper (ATCU) Target Price: $5.40/share Alta Copper (ATCU) Target Price with projected Cu appreciation: $7.10/share “For those companies that are currently mining copper – or in the process of developing new mines – the current tight supply situation is a recipe for higher stock prices. “When you look to the longer term macro there's definitely space for these stocks to move a lot higher in tandem with a much higher copper price,” said Stefan Ioannou, mining analyst at Cormark Securities. Current tight supply situation is a recipe for higher stock prices