"CMMC is now a fully fledged experienced operator of bulk tonnage low grade copper (with minor gold and silver credits) mines having cut its teeth on the Copper Mountain deposits. The Copper Mountain Mine has substantial operating upside from the development of the open pit Ingerbelle deposit that has very similar geology and metallurgy. The combined Copper Mountain and Ingerbelle deposits, plus the brownfield's exploration potential around both deposits and along the CM copper trend, in ground that CMMC holds, should sustain reserves well into the future.
The merger with Altona Mining Ltd (ASX) was well timed, in market terms, with Altona having substantially augmented CMMC's overall resource base and lifted overall ore resource mine grades. The same exploration scope to substantially add to its copper and gold resource base exists at the Eva Project in Australia, given the superb ground holding CMMC holds around the projected copper operations near Cloncurry. The mining projects are moderately robust at today's relatively weak copper prices.
Given the decline in overall global copper resources and the reduction in average mined grades together with the projected substantial increase in demand for copper metal from, especially, electric vehicles (EVs) and grid supporting storage batteries, the upside potential for CMMC could hardly look better. All CMMC's copper projects are highly leveraged to the price of copper.
Therefore, given the foregoing metal demand projections the stock is viewed as a strong, longer term, investment play with substantial upside growth potential and scope for potentially significant dividends and/or organic growth as earnings improve."
Cheers
These are only my random thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
C6C Price at posting:
$1.09 Sentiment: None Disclosure: Not Held
