Post by
Henrich428 on May 24, 2021 7:15pm
Value of the Big Onion
Dome Mountain is the flagship property, and the reason why most of us are here. But The Big Onion, the copper property, is also interesting to consider. I was recently looking into Oroco Resources, the copper exploreco which Mariusz Skonieczny, who made the "I Hate Miners," series, has made 60x on. Oroco has 5.84 billion pounds of copper at 0.32% Cu; the resource is historic, not 43-101-compliant. The company is simply seeking for a buyout, and has no plans to put it into production. "The Big Onion," the copper property of Blue Lagoon, carries a 43-101 resource of 750 million pounds of copper at about 0.32% Cu. This is exactly the same grade which Oroco has. As of 23 May 2021, the market cap of Oroco is 16x bigger than that of Blue Lagoon. But its copper resource is only 8x bigger! Blue Lagoon has to double to reach fair value with Oroco on the basis of the copper property alone! And yet I dare say that the Big Onion isn't even priced into the market cap of Blue Lagoon. Blue Lagoon management also believes that the resource at the Big Onion can be expanded to 1.5 billion pounds at 0.45% Cu. Consider also that the Big Onion is located in Canada, whereas Oroco is in Mexico.
By the way, some thoughts on the potential of copper. The copper:gold ratio is barely any higher right now than it was in 1980 (not even double), when demand for the monetary metals was at an all-time high. So if our argument is that gold is extremely undervalued, because the Dow:Gold ratio is 1:19, whereas it reached a bottom of 1:1 in 1980, then copper must be basically equally undervalued as well, and may also have 19x potential. So copper is not in any way to be underestimated.
Comment by
Henrich428 on May 25, 2021 7:29pm
Thank you PorphyryHunters, excellent original research there on NFG and GBR.