Back to the Future? Good day to all,
There were some very interesting questions and comments raised this week about the current rise in Copper Fox Metals share price, in particular the comparison to the year 2021.
Yes, the international price of copper in May 2021 is almost the same as now. But the context is much more favourable today for CUU than it was three years ago:
1- in May 2021, the speculation was about the true value of the Schaft Creek mine in British Columbia and its proven resources, etc. Now, we know and although the September 2021 report was disappointing to some extent, the numbers are out and there is less speculation about it than before, at least not enough by itself to generate the volume and the rise in stock price that we saw in the past three days.
2- Copper prices are about the same in both years, yet the demand and the lack of exploration has critically increased since 2021. There are now serious and continuous studies announcing a dire need of copper in the coming decade if the planet wants to maintain its current industrial output. This situation simply bodes extremely well for a higher CUU stock price than three years ago.
In addition, the discrepancy between the New York market copper price and the London market is a new and astonishing paradox ($ 1,000 USD per ton of price difference between the two locations as of yesterday) which can propel copper to new heights, and CUU as well.
3- However, the biggest change that I can see so far is maybe the simple fact that investors are finally waking up to CUU, and most here have been overstating this idiotic situation for years. CUU owns 5 mines, four at 100 % and all in safe and stable countries (Canada and the USA). Some Arizona mines could be worth way more than Schaft Creek alone, and CUU owns them fully. Isn't it normal then that people finally get it and buy the stock? I think so. We have been under the radar for too long and new investors from the USA and Canada are just showing up late to the party... but buying.
4- The volume this afternoon made CUU trade over 7 million shares in only three days without any material news. If you believe this fact, confirmed yesterday by a press release from CUU, then all the marketing done by Elmer Stewart in the past months is working at last. Don't forget that CUU had a booth at PDAC 2024 this past March and Elmer also did a promotional video shown on numerous platforms, including YouTube and others. It is about time that his efforts pay off and that big whales notice. Many brokerage firms and hedge funds are currently turning their attention to the metal sector, so CUU might ultimately stand out as a real bargain for them.
5- I am all positive for a reason: TECK is overflowing with cash now. Other multinational firms are also full of spending money now. There is no better context for them to buy CUU or parts of it. Copper mines in Chile have been closed by environmentalists, others in Panama and Rumania taken over by their national government, often arbitrarily. CUU owns secured properties in democratic jurisdictions, thus money might flow here instead soon.
TECK needs to heed to an ultimatum from CUU and make a decision, or management can find another buyer elsewhere, and easily. If you understand this positive dilemma as an investor, it is logical to buy CUU shares this week, hence the past days of frenzy with the stock.
That said, like others, I hated to see our company lawyer unload more than 200,000 shares just after we hit 50 cents. This was quite a bad move and it stopped the momentum, probably giving rise to the idea of a pump and dump scheme by the firm. Even if he wanted to convert his warrants, there was no deadline nor rush to do it. Not smart, unless he desperately needed the cash. I was not impressed as a long-term shareholder since he is always the insider who sells, every time.
***
If the volume stays high for the rest of the week, maybe our little investment will reach adulthood. At any moment, news of a buyout or a takeover can happen. We have known this for decades but the context today is ripe for a massive jump in price than ever before. We never had such external catalysts in our favour, if you remember the past.
But those May 2020 shares at 6-9 cents sure look good now in our bank accounts...
;o)
Let's go, CUU. Enough waiting, dollarland is near.
Have a great Spring,