The copper sector is now starting to build and the anticipation for a copper boom is well and truly setting in concrete. It feels like the market is finally in sync with the narrative of copper being the next dominant player in the metals race. Pricing on copper may now appear to be on the increase, but if you take into account the potential risk of a supply crunch, the price of copper could go even higher from its all-time high now (Figure 1).
Figure 1: Price chart of copper. (Trading Economics)
QMines Limited (ASX: QML) is one of the companies in the Australian Stock Exchange (ASX) who are trying to showcase an investment scenario of potential investors. Currently at AUD14M market capitalisation, this company has just completed a Pre-Feasibility Study (PFS) which seems to be indicating a compelling case to be the next copper producer.
The PFS is showing a CAPEX of AUD192M, a Net Present Value (NPV) of AUD373M and an Internal Rate of Return (IRR) of 54% with a 10.4yr Initial Mine Life with a 1.8 year payback. These are pretty soft numbers which are indicating a strong case of what QMines is trying to complete.
These figures are not set in concrete and may change but it does have a good start to the downstream journey for QMines. For those who are looking at these numbers and thinking that it is attractive, I caution a good old case of DYOR as always.
This Samso Insight is a good summary of the QMines story.
Get Deeper Insights
The latest and most reliable information from experienced sources, that are completely unbiased are now available through a Paid Membership. Sign up here for a more trustworthy source of well-researched and independent information for investors.Â
-------
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
------
About Samso
Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.
Comentarios