I just read this article Copper Prices Surging As First...

I just read this article Copper Prices Surging As First Quantum's $10B Mine in Panama Sits Idle (*.com)

Regarding the Cobre Panama mine closure, a $10b copper mine which has been closed since November. Before its closure the site produced 1.5% of global copper supply.

Putting that into perspective the Cobre mine was producing at 330 ktpa of copper metal before closed, this leaves a huge hole in a market already forecast to be in deficit. Our HGO plant operating at full capacity of 3.6 Mtpa can produce about 32 ktpa and our resulting EPS at the current SOI will be 10 cps (at current Cu and FX rate).

I thought the Cobre closure would be a temporary thing but as reported there was a national referendum after years of negotiation with the owner which resolved in the closure of the mine. This won't be a short term closer. Plenty of time for HGO to drill, drill, drill and build up resources to operate at full capacity, then the market can comfortably apply a 4x PER and price the stock at 40 cps

We have continually been told by management that our MRE is "only limited by drilling". The next 12 months will test that statement.


gltah


From the article: