Hi Simon,
In response to you why I am holding on and how I the back of the envelops north of 30 cents.
A couple of the biggest risks for this company is getting a takeover bid at these ridiculously low levels.
Nearly all potential ASX-listed copper producers like MOD and Avanaco all taken over and gone.
Market cap valuation of AUD 130m way to low for what HCH currently has.
Current in-ground vale of the project.
2.9 million tonnes of copper
LME USD 9500 plus per tonne.
USD 27.5 billion worth of in-ground resource
2.7 million OZ of Gold
Gold USD 1781 per OZ
USD 4.8 billion of in-ground resource
Goldman the other week has USD 5.5 per pound on copper going fwd.
Copper plus USD 4.40 a pond overnight
Over USD 33 billion of in-ground copper and gold, convert to AUD and plus AUD 43 billion of JORC resource, market cap AUD 130 m, when the mainstream investment hears of this thing will really start moving, company needs to get a quality Aussie plus Canadian broker plus London, brokers covering and writing quality institutional coverage on this.
The company could get the USD 17 m final payment done and invite them to jump on board now. If not the sharks will circle at 4/5 cents way to low and makes the company very vulnerable to a low ball takeover at 7/ 8 cents, I am not a seller at 8, I am in this thing to sell at 30/ 40 cents plus when the stock gets proper mainstream coverage.
Even with 3.1 Bn to 3.4bn valuation, the stock really has the potential to have a $1.00 atthe front of this, some may say crazy talk LOL but that still only values it atAUD 3.4 Bn when Freeport has USD57 Bn market cap it is all relative and if HCHcan be a 10 year plus mine life and all the ducks on altitude, distance toport, roads, infrastructure, grade and can get to 5MT Copper resource it all doesn’tseem too crazy.
Minimum 10-year mine conservatively 80k tonne a year copper producer.
That’s USD760 m a year in revenue, if they get to a 5m JORC copper resource every major will have a crack at them, and a bidding war will happen just like Equinox back in the 2010s. I used to be the FX dealer for the company when the thing had a head office out of West Perth. The takeover on that was plus USD 7 billion from Barrack.
Freeport has nearly tripled since last October,Pm Capital wrote a great video on them last year and why they invested in Copper. On the PM Capital website under Copper for anyone who wants to watch.
All the current ASX-listed copper producers bar Sandfire have crazy PE levels. Sandfire at 8, OZ Minerals, RIO, BHP, Mineral Resources and IGO both into the 10, 20s to 30son the PE ratios
Fund managers, brokers will be looking eventually (takingway to long for my liking) at the potential of where this thing can go. On asuper uber-conservative potential Price Earnings (PE) of 5, and only saying on USD 760 m thisthing makes USD 200 a year (way to low) this bad boy will be a USD 1 billionmarket cap before we can scratch ourselves. Thats how the 30 cent is my rough and dirty number.
Its blinking hard work to watch this thing trade sideways when other companies are going gangbusters on pretty much just company promoters spruiking rubbish projects. This thing will start moving once North American Brokers start coming on board, we need the likes of Canaccord, Sprott, BMO, CIBC, RBC and some of the big boy brokers writing the company up, then that in turn will get the quality global resource funds buying in. Then the difficult bit will be how long do you hold on?
The 4 cents to 5 cents it is drifting in is just a cracking opportunity to buy some at these ridiculous levels. Yes, it is concerning when some dabbler drops his/her stock from 4.6 cents to 3.9 cents but will be interesting to see who picked up the line yesterday, any whispers about who it was?
Welcome thoughts good or bad, yes I am early on the potential PE ratios but this is what institutional money will be looking at and what potential this thing has. They just need to hear about this thing.
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