Gobbling up Copper Continues, MMA, ZON, Greenbriar GRB, Bitcoin
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Last week I commented about all the M&A activity with mining and the high demand for copper companies. Copper hit another high today and there is a mega deal in the copper mining sector. All the copper miners popped in price, including our Capstone CS at new highs of $9.60.
Shares of Anglo American are having their best day in years, up 16% after a $39 billion buyout bid from BHP Billiton that would create a new copper mining giant. The M&A overture comes amid boom times for copper. The deal would also boost BHP's presence in the world’s top copper producing countries, Chile and Peru, as with the acquisition of Anglo American, BHP would gain access to four of the world’s largest copper mines — Collahuasi (with ownership of 44%), Los Bronces (50.1%), El Soldado (50.1%) and Quellaveco (60%). This would improve the company’s exposure to copper by about 40%.
Again, for details and why this is all happening see again my December 2023 report 'Dr. Copper'.
Here was my conclusion in that report. “There is no way that supply will ramp up enough to meet rising demand, even if demand increases are half of what is expected. Bringing new mines on stream is becoming more difficult with regulation and climate activists. The major mining companies are mostly focused on expanding and improving profits at their existing mines. The two main results are higher copper prices, that will likely go to new highs and a huge focus on junior copper explorers. Not by investors yet, but the majors who are watching these like hawks and will be jumping on discoveries and promising projects.”
Our copper producer Capstone has jumped over 60% and soon juniors on our list like Midnight Sun and Zonte Metals will soar. I am doing another interview with Zonte this weekend and hopefully Midnight Sun too that just announced a mega deal with a major.
Midnight Sun - - - TSXV:MMA - - - - Recent Price - $0.24
Entry Price - $0.27 - - - - - Opinion – buy, strong buy after financing closes
First Quantum is another major scrambling for more copper so on Tuesday, a co-operative exploration plan between Midnight Sun Mining and First Quantum Minerals Ltd. was announced. The plan is to jointly define potential feed sources on MMA's property for First Quantum's SX/EW (solvent extraction/electrowinning) oxide copper circuit at the Kansanshi mine.
Basically, Midnight Sun will fund exploration to further prove up reserves and First Quantum will do all the infrastructure work to truck and mine the ore at their plant. Exploration work on oxide copper targets across the Solwezi Project is anticipated to start in Q2 2024, with an initial focus on the Kazhiba Dome target, where previous drilling intercepted 14.2 metres of 5.71% Cu, 24 metres of 3.15% Cu, and 8 metres of 5.14% Cu*. Prior work on the Solwezi Project outlined multiple high-grade zones of oxide copper mineralization. To that end, today MMA announced a $3.3 million financing at $0.22 per share to fund the exploration and drilling.
"Through exploration work carried out across our Solwezi Project, we have outlined numerous areas of high-grade oxide copper mineralization at or near surface. Previously, we had considered oxide intercepts as pathfinders in our exploration for large sedimentary copper targets at depth. Now, a remarkable opportunity to utilize this oxide material has been identified, which could put Midnight Sun in a position to become a near-term producer," stated Al Fabbro, Midnight Sun's President & CEO.
"First Quantum's Kansanshi Mine has depleted oxide reserves and is transitioning to a large sulphide development. In the meantime, they have capacity potential to process oxide ore. Our property is just a few kilometres from their mine gate, and an existing haul road owned by First Quantum connects the two. Using oxide copper ore from our property, First Quantum may be able to enhance feed grades and utilize sulfuric acid produced by their on-site smelter. In turn, Midnight Sun would be in a position to receive significant near-term positive cash flow from the throughput of material from our property. We are thrilled to have found a win-win situation that represents such significant benefits to both Midnight Sun and First Quantum."
For some off the wall estimates, Midnight Sun could likely define 5 million tonnes around 1% copper for 100 million pounds. There could be much more but as a base case, if there was 80% recovery and at $4.50/pound is US$360 million gross revenue. Considering costs and splitting with First Quantum, Midnight Sun has potential for $50 to $70 million in profits for the first year of mining. We will have a much better idea of numbers once Midnight Sun further proves the resource grade. Mining costs will not be so much because it is an already built mining complex, already paid for.
The stock has been stuck in a channel between $0.20 and $0.32 and could stay down in price until they close the financing, so some time to try bids. After financing I see it as a strong buy to $0.32 and again if it breaks out above $0.35.
Greenbriar - - - - - TSXV:GRB - - - - - Recent Price - $0.84
Greenbriar will hold a webinar at 11 a.m. PDT on April 26, 2024, for the public to discuss all of the projects for Greenbriar. Answers and updates will be provided by Greenbriar directors' Chris Harvey and Jeff Ciachurski.
All of the home purchases at Sage Ranch are fully supported by the Federal Housing Administration (FHA) where any buyer, even with no savings and a low credit score, will have the federal government guarantee 96.5% of the purchase price.
Closing documentation currently being undertaken with our project lender and the coordination with all of the stakeholders is to break ground during this May. First works will be the offsite widening Valley Boulevard and the offsite water and infrastructure connections.
Update on Montalva and preparations being taken to file with the FOMB.
Update on Cordero Ranch, and its 3,000+ homes forecasted in Southern Utah.
Summary analysis from Chris Harvey as to why as the former CEO of JP Morgan Securities, he has joined the board of Greenbriar.
I plan on being on the webinar and here are the co-ordinates if you want to join in
Link to the webinar:
https://us02web.zoom.us/j/86486001009
Our short Bitcoin trade is moving in our direction, Lets see what Friday brings.
#copper #bitcoin #green
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