I am not the writer of the information below but it made a lot of sense so I have copied it here, I think it is right on the money!
"As everywhere, there are investors with different views and goals. Some would be satisfied with a quick 100% return, others only when the stock has multiplied. I am here as a strategic investor. I want to see
$ATCU Alta Copper acquired by a large mining company and get a fair price for the project/asset. At the very least, I'm here to see a significant re-rating of the stock. In the best case scenario, i.e. a takeover, I
compare the multiples paid when a takeover is announced. This gives me a good idea of what I can expect. I know the problems with this kind of approach, but in my opinion it's still the best estimate you can get. I took another look at two acquisitions I've followed in the past:
Eva Copper Project (October 6, 2022) and
Josemaria (December 20, 2021).
In the case of
Eva, 6.6 USD cents per CuEq lb were paid and in the case of
Josemaria it was
4.5 USD cents.
In both cases, I only took into account the
measured and indicated resources.
How is Alta Copper currently valued? (Share price CAD 0.40, fully diluted shares 90,706,620 as of December 20, 2023, copper USD 3.77, gold USD 2040, silver USD 23.20, USD/CAD 1.3500) I see only 0.25 USD cents (measured + indicated resource of Canariaco Norte)
Now it's anyone's guess which multiple to take for Alta Copper. My recollection is that for
most projects as advanced as Alta Copper, 3 USD cents was the lower bound. Has the lower bound changed? I don't think so. There is even a possibility that it has moved up. But either way,
3 USD cents in other words means 12 times the current value or CAD $4.80 per Alta Copper stock. Does that sound too crazy? ;-)
I think 2024 could be the year we strategic investors have been waiting for so long."