Warwick Grigor of Far East Capital has an informed write up of CLA this week after meeting management. Well worth a read.See attached below. I have copied just two of his paragraphs. He answers some of the bigger questions overhanging stock and he clearly feels it will rerate.
I am also struck by the purchase on Mon of 13.25m by one buyer at 1.4c..$185,500. Money always speaks louder than mere words.
Celsius Offers Excellent Re-rating Potential
We have written up Celsius Resources (CLA) a few times
since it changed its focus from the Opus Cobalt Project in
Namibia to the MCB Copper/Gold Project in the Philippines,
in September 2020. We have even participated in a couple
of small placements since then.
Celsius carries a very modest market capitalisation of only
$20m notwithstanding it has a project with sound
economics that could support a mine life of > 50 years.
There are many juniors selling at higher capitalisations that
have only hot air. Celsius is either the best value predevelopment copper stock on the ASX, or it is a complete
red herring. My bet is on it being the former, but why is the
share price so cheap today? What are the pros and cons?
The Bottom Line
Celsius is the classic contrarian buy. The market is not yet
in love with it, but I would suggest that the market doesn’t
understand it. That makes it a buyers market and investors
can get set at what is likely to be the bottom of the price
cycle.
What I really like about Celsius is its very low market
capitalisation of only $20m(1) notwithstanding it has a large
project with sound economics that could support a mine life
of > 50 years. It is actually an institutional-sized project in a
penny dreadful shell. The Company needs to start
behaving like an institutional stock in waiting.
Everyone is telling us that we need a dramatic increase in
the supply of copper to meet the challenge of alternative
energy. This project is exactly what the copper world needs
now.
WeeklyComm17September2022copy2.pdf
Celsius - an institutional-sized copper project in a tiny company-Grigor
Add CLA (ASX) to my watchlist
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Last
1.1¢ |
Change
0.000(0.00%) |
Mkt cap ! $26.70M | |||
| Open | High | Low | Value | Volume |
| 1.2¢ | 1.2¢ | 1.1¢ | $2.476K | 215.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 193793 | 1.1¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 1.2¢ | 4230745 | 7 |
View Market Depth
| Last trade - 16.10pm 02/05/2024 (20 minute delay) ? |
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Last
1.1¢ |
Change
0.000 ( 8.33 %) |
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| Open | High | Low | Volume | ||
| 1.2¢ | 1.2¢ | 1.1¢ | 200000 | ||
| Last updated 11.20am 02/05/2024 ? | |||||
| CLA (ASX) Chart |