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Bullboard - Stock Discussion Forum Gunnison Copper Corp T.GCU

Alternate Symbol(s):  GCUMF

Gunnison Copper Corp., formerly Excelsior Mining Corp., is a copper development company. The Company operates in Cochise County, Arizona, and is focused on delivering pure copper cathode into the United States domestic supply chain. The Company’s projects include Gunnison Copper Project, the Johnson Camp Mine, and a portfolio of exploration projects, including the Peabody Sill and the Strong... see more

TSX:GCU - Post Discussion

Gunnison Copper Corp > Fun with numbers and why this is a $30 stock....
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Post by metalhead666 on Dec 24, 2020 1:34pm

Fun with numbers and why this is a $30 stock....

In a couple of years....

Copper at $7 per lb.  This is not far fetched with a growing deficit and high demand

AISC of $1.35 which I assumes covers royalties, debt payment etc (I could be wrong on this but follow along)

100 million lbs of production per year for decades

Round down to a $5 per lb profit equals half a billion $$$$

Divide by 300 million shares assuming some capital raises between now and then

That's rounded down to $1.50 per share in annual earnings

Give it a 20x multiple as it's a world class predictible project...maybe throw in a dividend which I'm sure is likely at some point

You have a $30 stock or a 30x bagger give or take in 3 years or so.

If my math is off by a factor of 2x it's still a $15 stock and if I'm 3x wrong for whatever reason it's still a $10 stock! 

You find me another investment that has the will of the people and the force of every government behind it that can claim to be a "green" miner supplying a much needed product into a market of decling supply....I don't think you can

Now can things go wrong?  Of course but at this stage I highly doubt it.

In addition we will be getting terrific press coverage, could get a buyout offer at any time and have a clear pathway now to growing production every day.

I have aggressively added to my position this week....I intend to hold until the 100 million pound mark is reached or my price target of $30 or a buyout offer

IMHO this is the single greatest opportunity I've found in over 40 years of investing.
Comment by IgnacioCashmere on Dec 24, 2020 2:56pm
You bring up interesting figures that might come true. As for PE, this copper, a base metal. We expect copper producers to reach a peak of 12 & troughs of 8. That's in the best of times. At full production, 14 would be over priced, 20 is a fantasy. In the ramp up to full production, we might briefly see a PE in excess of 12, in anticipation of better results in the near term. Further, they ...more  
Comment by metalhead666 on Dec 24, 2020 4:53pm
Good points all...I would argue that a PE of 20 is not unreasonable given two things...1. The unique nature of the project and the "green" title it sports and 2. Everything has an elevated PE and will so long as rates remain this low. I also anticipate a fat dividend....all that free cash flow has to go somewhere...that will add to the appeal.  As to $7 copper...I think it's ...more  
Comment by metalhead666 on Dec 24, 2020 3:04pm
Let me clarify one point....I have been investing for 40 years....I've blown up my account, ridden some stocks to zero, shorted Lehman Bros before they folded, bought a lot of PGM for pennies and sold recently....been there and done that both good and bad. All in all I've done ok.  What gets me so pumped about Excelsior is every wind is a tailwind. The "green" movement is ...more  
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