Alta Copper Corp T.ATCU

Valuation of a copper explorer

[nizza]

From history


In mid-2014, Hudbay Min. took over Augusta Res.

The valuation of p Cu at the time of this takeover was USD 0.12 (proven and probable)

The copper price per ton at the time was between

USD 6,444 (March 2014) and USD 7,170 (mid-2014)

 

USD 0.12 per p Cu was special in my view; many other takeovers that came before this had

valuations of USD 0.03 to 0.08 per p Cu.

 

We currently have a copper price per ton of USD 9,142

 

Now many market participants assume that the copper price will continue to rise. Figures of USD

10,000 per p Cu in 2025 and up to USD 15,000 in the following years are mentioned.

 

Let us assume USD 10,000 per tonne of Cu in 2026/2027 and assume that Alta will achieve a 25 to

50% increase in resources with its drilling and thus have 13 to 16 billion p Cu proven and probable.

 

Against this background, higher prices per p Cu could be called for for takeovers compared to then:

 

2008 - 2014

0.03 - 0.08 p Cu (at an average of USD 7,000 per ton

 

in relation to the expected USD 10,000 per ton Cu could then mean:

 

2026 / 2027

0.043 - 0.114 USD per p Cu as a possible basis for valuation

 

An increase in the resource by 25-50 % would therefore be met with a demand-related increase in

the price of copper.

 

Everyone can deduce the possible result.

 

Alta already has a world-class copper deposit and can also expand it significantly.

 

And all this against the backdrop of rising copper prices.

By the way: Giulio's talk in Zurich was very strong in my opinion. I have the impression that he

knows what he is doing.


https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2024/11/11/alta-copper-corp/play/stream/39439
 

[Buffet11]

Looks like a non-brainer looking at it with those numbers, but I guess one would also have to consider that the cost of mining (even in Peru) went up tremendously. At the moment is seems that at a price below $10.000 / ton no copper procducer isn't even feasable.  Here an interview with Friedland on this subject. Friedland warns of copper ‘crisis’ as mine costs soar - MINING.COM At

[ForesstGump]

One step at a time. You won't get anywhere without an agreement with the community that they have been trying to get for over a decade. 

[horsewithnoname]

@Froesst - interesting your are bashing the stock now - not sure why. I have said many times that this is a process and in this process we have advanced the most since the last 12 years. We have new permits at the governmental level for a large drill programm covering CN, CS and QV which we never had before, we have a domestic political climate that is significantly different to 2012, we have a

[ForesstGump]

I never bashed and sorry if it seems that way. I am just frustrated as per the community agreement.