Copper & Gold are obviously in for a big 2025. I think CY5 are going to the big winners out of this macro theme.
The copper and gold markets are on fire! Gold is smashing records near $2,900/oz, and copper is climbing towards $4.80/lb currently putting in a break and retest of a major bullish reversal level — levels that drastically improve project economics across the sector.
But here’s where it gets interesting… Not all stocks have been re-rated yet, meaning massive upside opportunities still exist!
Enter Cygnus Metals (ASX: CY5) – just completed a merger getting their hands on one of the most exciting copper-gold development projects in Canada. Their TA looks excellent as well aiming to break out above 15c which will confirm change of market structure on the weekly (turning bullish). Off strong bullish divergence on RSI and rising OBV. Perfect bounce off the 382 also indicating a strong trend intact.
For newbies who haven't heard the Cygnus story see below to understand where the upside comes from, and what differentiates this from any other copper gold play (since they all stand to benefit from the structural theme, why will CY5 do better than the baseline?).
Cygnus recently merged with Doré Copper Mining, gaining control of the historic Chibougamau copper-gold project in Quebec. The 2022 economic assessment on this project was done at just
$3.75/lb copper and $1,820/oz gold… but today’s prices change EVERYTHING!
Copper: $4.80/lb (up ~35%)
Gold: $2,900/oz (up ~60%!)
USD:CAD exchange rate: 1.42 (boosting project value in CAD terms)
Result? A PEA that originally estimated $745M in pre-tax cash flow could now be worth closer to $1.8 BILLION!
And yet… Cygnus trades at a tiny $110M market cap (13c/share).
The upside potential here is absolutely enormous!
Why else is Cygnus (ASX: CY5) is a Standout in the Copper-Gold Boom✅ Massively undervalued compared to the new project economics. This is a company specific opportunity and will compound on top of market overall bullishness for copper and gold. In other words, other copper and gold plays don't all have this dynamic at play.
✅ 900,000tpa processing plant already in place (huge cost/time advantage).
✅ Drilling underway with potential for further high-grade discoveries
✅ Led by the same powerhouse team that built Bellevue Gold, Mincor, Firefly Metals, Andean Silver and many more. Check out those charts to see the results this team consistently delivers with their proven strategy.
✅ Canaccord research puts an unrisked valuation at 60c/share – a 360% upside from today’s levels!
The Bigger Picture – Why Copper & Gold Are Set to Soar Copper is the ultimate energy transition metal. Demand is skyrocketing for EVs, renewables, and grid expansion, while supply remains tight. Some analysts predict $5–$6/lb copper in the coming years!
Gold is the ultimate hedge in volatile markets. With record central bank buying, inflation risks, and a shaky global economy, the bull case for gold has never been stronger.
A company like Cygnus, with both copper AND gold exposure, is positioned for the perfect storm of growth.
The Takeaway – A Once-in-a-Decade Opportunity? Don't just ride the macro theme, pick the winner of winners!✅ Cygnus has a world-class project that is getting more valuable by the day.
✅ The market hasn’t woken up to its full upside yet. With the updated figures above, rough calcs should be able to deliver an NPV of around $900m-$1.2bn CAD which using average NPV multiples supports a share price of anywhere between $1-$2.
✅ Re-rating potential is HUGE – especially as new drill results and feasibility updates start rolling in.
⏳ The time to move is BEFORE the market catches on. Once Cygnus updates its economics studies and big players take notice, the current $110M valuation will be a distant memory. Lack of awareness, macro tailwinds, existing plant infrastructure, existing economic studies that appear to support much higher valuations, and the best possible management team are all shaping up to deliver for this mob in 2025 and beyond.
Just my opinion - But this could be the most explosive ASX copper-gold stock of 2024. Do your research.
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