CYM is pretty much trading around its EV. IMO being able to...

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06/01/22

14:44

Post #: 58682952
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Originally posted by Da12kl0rd: ↑

The current market cap reflects CYM as an up and coming cobalt producer and nothing else. (We have currently have $1.7b AUD worth of cobalt).

From the current market cap of $107m, I'd say this is fair assessment. There's obviously some risk. But there's the potential to return a handsome payout to early investors

But wait.... CYM isn't solely an up and coming cobalt producer. No. It's going to be the FMG of the Australian copper industry.

There's already easily $100m+ sunk capital invested in the concentrator, plant, airstrip and accommodation.

There's already $16.8 billion AUD dollars worth of proven copper resource.

There's already further drilling under-way because we know there's more (Maroochydore may be another Nifty-class super pit).

We know management is top tier and proven.

We know the team is working hard towards ticking off ambitious objectives and is targeting rapid growth.

And we're not starving for capital. We have ~$30m in the bank with financing under-way.

The only two risk are; copper shits the bed and potential delays. But with the globe racing towards net 0, and global economies booming, I highly doubt the first risk will occur.

So perhaps investors are left to wait 18-24 months. But considering a full production copper mine is priced in as worthless, I think it's a very attractive 'risk'. 24 months for a 1,000%+ return? I'd like to see anyone do better than that with an ETF.

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CYM is pretty much trading around its EV. IMO being able to accumulate shares sub 20c has been pretty tasty from a risk vs rewards point of view.

Its nice to see the scales flipping and currently the buyers are slowly pushing up the price for a change. Can anyone see who's missing from this list?

Also even through this down turn most retailers have had pretty solid hands and have been happy to accumulate the whole way down and now with how thin the sell side is some good news and in the short term CYM could be back into the high 20s / 30s.

I do also think most people here see the big picture that CYM could be an easy 10x+ from here even if some delays and inflation cost blow outs make that journey take a bit longer.

CYM Price at posting: 19.0¢ Sentiment: None Disclosure: Held
12 Upvote

2 Great analysis

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