From a fundamentals perspective. Way undervalued. There have been more spent on the development to date than the current MC Value.
From a deposit perspective, it has always be a great prospect and after the revised resource is going to get better & bigger.
A strange position to be in but the deposit is huge and the high pre-production capex, construction duration and IRR all need to revisited in the new feasibility in order to progress their strategy of becoming a tier one regional scale producer.
The small scale mining partnership with ENAMI and how fast it ramped up is a great indication of the current market sentiemnt.
There are also other strategies around this such as securing offtake partners selling them copper concentrates etc to help the funding solution.
If they were to be a stand alone processing operation, they'll need help taking this into production, it'd be ideal if one of the heavy hitters partnered with them.
Hard to forecast how this will play out in the longer term and it all pivots around the price of copper.
In the short term, as high lighted above, fundamentally undervalued and the market cap does not reflect the cost they has been spent on the development, exploration and near term cashflow from operations. Additionally, the value of the new deposits. So their could be a re-rate over the next 3 months. Back in 2013 HCH for developer/explorer, they were targeted to have a MC of circa $350 Mil.
Copper prices have been in the shit over the past 3 years, so not exactly sure what the financiers appetite is at the moment for developments of this scale.
My Opinion on investment. In the next 12-24 months there will be some supply constraints on copper that will keep the prices high, in terms of demand hopefully it continues to rise. The investment is fairly safe at this MC and should only appreciate. So there should be a re-rate but i don't have a view on what a fair market valuation is.
As a longer term investment, I see abit of risk here, just in how long it's going to take from now till project construction commences. Other Macro economic factors could trigger some volatility in the copper price.
I'd park what I'm willing to not see in the near term, so max $30K.
If you are looking for wealth creation over the next 18-24 months, I think the gold sector offers much better opportunities particularly as a result of the macro economic environment and the aggressive expansion of the money supply and nations, corporation & individuals looking to hedge their wealth against inflation. Won't bore you with too much info as you probably have read about it 1000x but with the lack of money spent over exploration overt the past 7 years, good gold deposits will have the attention of the whole world, which is why DEG is in the global spotlight. Money is where the attention and we haven't seen anything yet, wait till the generalist money start flowing into gold!
(20min delay)