Below a bit easier to read. James and the team at MM are pretty...

Below a bit easier to read. James and the team at MM are pretty solid - probably the only paid subscription I think that's worth it.

A1M is an up-and-coming Australian copper producer with a market capitalisation of around $200m, with $74m cash in the bank. While small, it is producing from the Eloise copper mine – a high-grade operating underground mine located in North Queensland currently producing 13,400 tonnes of copper at A5.15/lb and is set to ramp up production meaningfully over the coming years via the expansion of the Eloise processing plant and extension of current life of the operation through the development of another deposit known as Jericho, located 4kms from Eloise.

They also have additional exploration assets in New South Wales and WA.A1M recently raised $57m at 52cps (via Shaw & Partners & Argonaut), with the placement seemingly well sought after – Directors bought ~1.6, shares in the raise. The timing of the company was impeccable, with copper trading at above US$5/lb and strong demand for copper equities.

Since then, the copper price has fallen ~17%, and A1M is languishing at 33.5c, down over 40% from this year’s high.

Management is key, particularly at this juncture of its life, and Managing Director Aaron Colleran was a founding member of Evolution Mining, managing its business development and investor relations program from inception through to 2018.

The aim of the Emerging Companies Portfolio is to unearth smaller companies with leverage to the themes we like, and copper is certainly one of those, leading us to question whether or not the most suitable copper exposure in this portfolio is via an existing holding in Sandfire Resources (SFR), or the higher bang for buck A1M?

This is a higher-risk idea, more heavily leveraged to the copper price on both the up and downside. However, we like the strategic direction of A1M, with a producing asset and a well-planned exploration and expansion program in play. With cash now in the bank and positive announcements in terms of both production and exploration in recent months, we like the risk/reward at current levels.