FN Media Group Presents Microsmallcap.com Market Commentary
NEW YORK, Nov. 23, 2021 /PRNewswire/ -- Last week, US President Joe Biden unveiled one of the largest infrastructure plans in U.S. history. The bipartisan approval targets up to $1.2 trillion in funding, including $550 billion in new investments for bridges, airports, the nation's waterways and policies, transit, and more. Much of the bill targets electrification for infrastructure, buildings, and fleets of government vehicles. In addition to financing renewable energy, the infrastructure bill also provides $7.5 billion for electrification of public transport and an additional $7.5 billion for charging stations for electric vehicles (EVs), which is expected to drive demand for industrial metals and battery materials like copper, lithium, cobalt, nickel, and more. Companies mining these metals and materials like Wheaton Precious Metals (TSX:WPM) (NYSE:WPM), Hudbay Minerals (NYSE:HBM), Taseko Mines Ltd. (TSX:TKO) (NYSE:TGB), Copper Mountain Mining (TSX:CMMC), and Kutcho Copper (TSXV:KC) (OTCQX:KCCFF) could be on the precipice of a mining boom due to this bill.
Canadian resource developer Kutcho Copper (TSXV:KC) (OTCQX:KCCFF) just achieved a significant milestone at its Kutcho copper and zinc project in northern British Columbia, announcing the completion of its 2021 feasibility Study. After receiving positive project economics, Kutcho is now ready to move to the next phases on its path to production including the permitting process for the project.
Some of the highlights of the feasibility study include an after-tax Net Present Value (NPV) 7% of C$461 million, an Internal Rate of Return (IRR) of 25%, and low-cost production with all-in-sustaining costs (AISC) of US$1.80 per pound of copper equivalent (CuEq). The initial capital cost was also estimated to be low, at only C$493 million.
The study also confirmed that the project has a high-grade mineral resource of 8 million tonnes grading 2.26% CuEq 1.1 billion pounds CuEq, including 764 Mlbs Cu and 1,096 Mlbs Zn.
"The Feasibility Study represents a major milestone for Kutcho Copper as we continue to advance the high-grade Kutcho copper-zinc project towards a development decision," said Kutcho Copper President and CEO Vince Sorace. "The results of the Feasibility Study highlight the attractive economics of the Kutcho project which are resilient at lower metal prices, very attractive at base case prices and exhibit significant leverage to rising prices as reflected in spot metal prices with a C$931 million after-tax NPV7% and a 41% IRR. We believe that the results of the Feasibility Study mean that Kutcho Copper is now one of the most undervalued copper investment opportunities in North America."
Last month, Kutcho Copper also outlined potential open pit and underground resource expansion targets for 2022, beyond those contemplated in the feasibility study. Kutcho's President and CEO commented, "We plan to advance a number of greenfields targets that show potential for the discovery of entirely new deposits that have not seen any exploration conducted since 1990."
Kutcho Copper is evaluating plans to explore new priority targets in 2022 with the goal of enhancing the potential and size of its project. In conjunction with these efforts, Kutcho Copper will conduct an airborne geophysical VTEM survey over portions of the property that have not been covered by geophysical surveys in the past.
The company, which gained $100 million in financial backing from Wheaton Precious Metals (TSX:WPM) (NYSE:WPM), is fully dedicated to resource development to expand its high-grade Kutcho copper-zinc project in northern British Columbia. Kutcho Copper is committed to social responsibility and high environmental standards through the feasibility and permitting required for a positive constructive decision to advance its Kutcho Project, bringing it to production as soon as possible during this opportune moment for copper miners.
For more information on Kutcho Copper (TSXV:KC) (OTCQX:KCCFF), please click here.
An Industry in a Maelstrom of Perfect Timing
Wheaton Precious Metals (TSX:WPM) (NYSE:WPM) recently declared its fourth-quarter cash dividend payment for 2021 of US$0.15 per common share, a 25% increase over the comparable period in 2020. The company reported its earnings for the first nine months of 2021, revealing over $200 million in operating cash flow during Q3 and a record $650 million in the first nine months of 2021.
Hudbay Minerals (NYSE:HBM) announced in September that new three-and-a-half-year collective bargaining agreements ratified by United Steelworkers members have been signed. Hudbay is a diversified mining company that primarily produces copper concentrate. The company's growth strategy is focused on exploration, development, operation, and optimization of its existing properties.
Taseko Mines Ltd. (TSX:TKO) (NYSE:TGB) reported a significant increase in quarterly copper production. Taseko Mines announced that the Gibraltar mine produced 34.5 million pounds of copper and 600,000 pounds of molybdenum in the third quarter, representing increases of 29% and 50% respectively, compared to the second quarter.
Copper Mountain Mining (TSX:CMMC), whose flagship asset the Copper Mountain mine in British Columbia, Canada produces approximately 100 million pounds of copper equivalent annually, announced the appointment of Patrick Redmond as senior vice president President, Exploration, effective November 1, 2021. Mr. Redmond will bring years of geological knowledge and insight to the Copper Mountain team, with more than 25 years of international mineral exploration experience.
The $1.2 trillion bipartisan infrastructure bill is about to kick off a long run for commodities, and in particular, copper. Copper mining companies are in the middle of one of the most opportune moments in history.
DISCLAIMER: Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Kutcho Copper Corp.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC