@ChilenoInvested Sounds like a good approach to Valuation...

@ChilenoInvested Sounds like a good approach to Valuation definitely I look at it too from a wholistic perspective. Agree Copper has a bright future on demand side - EVs and charging infrastructure, major infrastructure upgrades and build outs planned all over the world - no replacement for copper. Supply side - typical mining cycle has led to low investment in the last decade - supply response is coming but this time it is harder due to ESG issues, covid, deeper deposits, lower grades, etc. - the supply response will very likely be late this cycle.

HCH Cortadera I can see the similarity to Cadia/Ridgeway operated by Newcrest - I have visited and studied this operation - its impressive. Quick cheap production can come from C1 and C2 open pits whilst C3 is being developed for a block cave. This approach gives an excellent NPV outcome if the reserves are proven up and geometry, tonnage, ground conditions and economics allow for a block cave at C3. Not to mention hopefully revenue coming from Productora soon.

This is also a major risk - block cave is extremely technically challenging, lots can go wrong and requires huge upfront Capex spend to develop shafts, undercut level, extraction level etc before you get any ore. Have a read up of the issues encountered at Oyu Tolgoi underground block cave project in Mongolia. Unforeseen ground conditions or geotechnical oversights can cause a massive budget blowout too. Need a partner or someone with experience to develop and mine with this method.

I also like the relative ESG credentials of HCH compared to other deposits and I think these have been overlooked by the Market - no arsenic, sea water processing, close to Port, no cultural or native title risks. This has become more important than ever these days.

Also potential further discoveries at Cortadera North and Santiago Z are exciting. No guarantees of course there might be nothing but I would not write off C North just yet good Porphyry can be very deep seated - e.g - Resolution Copper Project in Arizona over 1.3km underground 1.4 Billion tonnes @ 1.5% copper (has cultural native title problems though) - need to drill with Diamond to find these.

I think Covid is only short term risk for this project. Overall I still rate this as a spec stock but I like the chances of the risks being overcome and the market giving this some attention hence why I am buying more at any price under 4c. I like investing in Juniors that already have a healthy JORC resource but due to risks market has not valued them yet - as long as you understand what the risks are and how likely the company is to overcome them that is the play here - manipulation etc is all just noise doesn't bother me at all.

Cheers
Doug