BRIGHT OUTLOOK It's almost that time of year when Garimpeiro will list a dozen or so stocks, across a range of commodities, to watch next year.
He is making an early call on the copper stock. It is the Chinese-backed Orange-based gold/copper company YTC Resources (ASX:YTC).
Thanks to the muscle that comes with Chinese backing, YTC got off to a flying start as a listed company by acquiring the advanced Hera gold project in the Cobar district of NSW in June last year.
The 560,000 ounce gold equivalent deposit (it gives gold values to the silver, lead, zinc and copper that comes along with the 4.1 grams of gold per tonne of dirt) has the makings of a 50,000 gold-ounce equivalent producer that would yield an annual operating surplus of more than $30 million.
That's a nice start for a company with a market capitalisation of $53 million. But it is the big-time copper potential of the group's Nymagee copper project some 4.5 kilometres to the north that has punters excited.
Early high-grade hits from exploration beneath historic workings have raised hopes that YTC could be on to something special, with comparisons being made to long-time producers in the region that over the years have produced more than 1.5 million tonnes of copper.
It's too early for any of that but we'll know soon if Nymagee is something special thanks to an a $4.8 million, six-month exploration program that will also probe for extensions at Hera.
YTC Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
