prhb: You're right with your synopsis and RXM doesn't present a massive bargain at present.
RXM's competitive advantage is it low capital intensity. It provides a relatively low-capital, quick-to-build mine which could be well positioned to take advantage of any up-kicks in price due to supply shortages. It's competitors are predominantly large-scale, long life projects like Tampakan which have a >5 year development timeline.
RXM's quoted 14% IRR isn't too far off the mark for the copper projects in the pipeline. CLSA came to a similar conclusion with "only three future copper developments ... (meet) a 15% IRR hurdle rate".
In summary, RXM remains well positioned to take advantage of any supply shortfalls, so long as Management are positioned to press the button to begin digging and processing when, or even better, before the shortfall becomes apparent.
prhb: You're right with your synopsis and RXM doesn't present a...
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44.0¢ |
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| Open | High | Low | Value | Volume |
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