This morning's open pit reserve announcement by HCH for its Chili copper project is an interesting read. The reserve is about half the size of RXM's open pit reserve at slightly lower grade. HCH's current market cap is ~$130m with approx $8m in the till at Dec 13. RXM by comparison, who's flagship project is favorably located in a flat coastal area in as arguably lower sovereign risk jurisdiction (North Tasmania?), enjoys a market cap of ~$80m with close to $30m in the till following the recent placement. So is HCH overvalued or is RXM undervalued? Perhaps Rex should change its name to Red Dog.
RXM Price at posting:
37.0¢ Sentiment: None Disclosure: Held
