Barry Fitz on copper for this week's article....BHP may have got...

Barry Fitz on copper for this week's article....
BHP may have got Ni wrong but have hope Cu will fare better.
A couple of companies he touted included CVV.
Nothing new for regulars here just good to see some interest.

Caravel Minerals (ASX:CVV): Trading at 15.5c (mid-week) for a market cap of $82 million. Garimpeiro has mentioned this one previously as well, and at higher prices than it is now trading.

Still, he can’t find an ASX junior with more leverage to the potential for copper to crack $US4/lb and then keep going.

The leverage comes from its 3.03Mt namesake copper project some 150km northeast of Perth in WA’s wheatbelt. It is being worked up as a 65,000tpa copper producer with molybdenum-gold-silver credits.

It is low-grade at 0.24% copper and has a $1.6 billion capex requirement. But its potential scale of production in a Tier 1 location means there is likely to be support in one form or another to get it in to production, just about when copper could be enjoying the sort of price strength that BHP’s forecast pronounced supply deficit would deliver.

The project’s economics look okay at a copper price of $US4/lb. But plug in $US5/lb or $US6/lb copper for its planned 143M/lbs of annual production potential, and the extreme leverage to higher copper prices is plain to see.
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