$srhi raise has closed $11mm cash in the kitty at 55c/sh Pure play producing copper company now trading at less than 10% of NPV based on $4/lb #copper apple.news/AC-LKTIYVTVutO…
$srhi - 46,000+ hectares of land with less than 10% explored. Over 100 copper occurrences mapped with 70 artisanal exploitation points registered
With a Vale-funded construction and infrastructure build-out approaching US$250MM, operations began in 2011, sold to a private family business in 2013 and operations curtailed. In October 2017, SRHI purchased 70% of MTV for US$40 million.
70 percent of $250mm is $175mm spent by VALE on $srhi stake in the MTV copper asset and infrastructure. $srhi has also spent tens of millions and now its market cap is ~$30mm with $11mm in cash.
$srhi is most certainly the cheapest #copper company on the planet. It’s producing, huge land package. Massive historical investment in its infrastructure with multiples of its market cap.
Look out two years and $srhi could be trading at less than one times earnings. I’m hoping they name change to MTV Copper or Salamanca Copper
$srhi forcasting to produce 34m lbs of #copper. And if copper holds in the mid $4/lb they are trading at around 1/2 times earnings. #cheapmining #invest #10bagger
Sensitivity - PEA Case Pre-tax NPV (US$ millions 2,4)
The $275mm usd npv is with $3.58/lb copper. And it’s low $4’s today. That’s a C$350mm Npv vs current market cap of ~$31mm with $11mm in cash. ~8-9 percent of npv for a producing copper company with better exploration potential the many juniors with higher caps and little cash
#copper chart looks awesome and the fundamentals are better
#copper currently at $4.18 vs $3.58/lb to yield the C$350mm npv for $srhi I think this would (ball park) put the current npv at ~$500mm Canadian vs ~$31mm market cap with ~$11mm cash.
I also bet that in today’s dollars the historical infrastructure spend would be around $300mm Canadian. So it’s likely trading at 10 percent of historical spend, 6 percent of npv based on spot copper and less than 1/2 times a year or two out earnings
I challenge anyone to find a cheaper #copper play than $srhi #10bagger #ev #ElectricVehicles #mining #buythisfuckingstock
I liked this thread so much I just bought more! #copper $srhi
Just playing with ball park numbers #copper and $srhi

$275mm usd npv @ $3.58/lb
= ~$340mm Canadian npv @ 8% discount rate

Npv8 @
$4.18/lb (today’s spot) ~$450mm
$5/lb ~$600mm
$6/lb ~$750mm

$4.18/lb (today’s spot) ~$525mm
$5/lb ~$700mm
$6/lb ~$900mm

Vs market cap $31mm
So let’s assume all warrants and options are exercised and more are added along the way. Call it 20mm more shares to be issued. 75mm shares total burn all the cash that comes in still base case $4.60/share or close to 10x @$3.60 copper
Continuing with the inflated 75mm shares npv8

Spot $4.18/lb yields $6/sh
$5/lb #copper = $8/sh
$6/lb = +$10/sh

Use npv 5%
Share price range $5 -> $12 same assumptions
I love #copper and I’m more bullish than Goldman and think we will spike over $6/lb and be $6-8/lb for yearsI think $srhi will likely go up between 10x and 20x in the next 2-3 years.

Plus it has significant exploration upside with 115,000 acres that is only 10% explored
I now own just under 5 percent of the company. Bought more today. Glad to see nearly 10 percent of the float change hands today. Let’s tighten up the share count and re-rate this pure play #copper junior. I think it’s a steal
Amazing that Vale started spending nearly 20 years ago and I think in today’s dollars well north of +$300mm has been spent on $srhi 70% holding of the MTV #copper mine. We get to buy in a decade later at 10% of the historical spend, in production, nearing record copper price
$srhi has been orphaned and has now successfully come back from near bankruptcy. It’s the cheapest #copper stock I know of. #investing #10bagger #20bagger

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More from @BambroughKevin

17 Apr
Copper thoughts:

USA recycles nearly as much copper as is derived from newly mined ore... but wire production typically is made only from new mined copper.
The effort to ‘double the electrical grid’ by 2040 to power electrical vehicles will therefore create an incredible demand for newly mined copper. Transmission lines, generation and in the vehicles themselves.

EV (cars) typically 3 times the amount of copper.
Ev buses and trucks will use 10-15x the amount of copper. Infrastructure bills the are being passed the world over.

As a result recycling supply/demand for won’t be increasing nearly as much as the demand for new mine supply.
Read 11 tweets
15 Apr
I’m loving the copper story and a result have loaded up on $SRHI one of what I think it’s likely the most unknown (and unloved) little Copper stocks with huge torque that I know of.
This company used to be called Sprott Resource Holding Inc and I was actually once the CEO of part of the entity (Sprott Resource Corp) back when it had $500mm in assets and its pre-mergers and two renamings.
It seems to have evolved into a pure play copper company and has recently raised $10mm at 55c. I cleaned up all I could under 50c today
Read 12 tweets
17 Mar
I’ve would like to own many more shares of Virginia Uranium at these prices. It’s taken me 2 months to buy about 1 percent of the company. I’ve put calls into the company as I would like to participate in a placement
I’ve yet to receive a response. Rather frustrating. And I’ve also asked some broker friends to help. But I can only assume their lack of response is representative of a lack of interest to raise funds down here
My 700k shares of $VUI doesn’t do it for me. If anyone can get a hold of management and is working on an issue. Please call me.
Read 8 tweets
17 Mar
If you own juniors miners expect dilution. If it’s the final capital to fund production at this point in the cycle buy the hell out of it
Ever one of the mine plans are likely to see capital costs double as this cycle progresses. $pdn has known operating costs and historic value of money sunk in its operations are greater than its current cap (inflation adjusted)
You want something real and certain to perform exceedingly well buy the hell out of $pdn now cause it’s the last chance you’ll get before it’s priced much higher
Read 5 tweets
5 Mar
When I started buying silver it was just under $4/oz and in told my friends that it was free silver. You only had to pay for the cost of deliver from under the ground to you and at that time nearly all producers were willing to do that for you at a loss on an operating basis
They ignored the massive costs past shareholders incured to find, prove up and build their mining infrastructure. They got caught with debt and operational pressures to continue to dig up their assets and sell them even though most made next to nothing on an operating basis
such is mining. They sink massive amounts of others peoples money to find and develop. Geologists dream of finding and developing and mine. And many work on them for a life time. They raise money when they can and spend it quickly to try to bring their dream to life
Read 11 tweets
4 Mar
#Gold down again but the #HUI don’t care and either do I. $NEM Newmont 4% dividend. Golds stocks are value plays and many with growth. #Gold will be $6000-10000 in 5-10 years. Forget the noise and get long
Again, I laugh when I see short term commentary about gold says deflation coming. In the last 20 years gold has gone from under $300 to $1700 ~6x And the DOW has gone from 10k to 30k 3x. $DJI, $QQQ, $SPX is stupid expensive and full of risk.
If we are gonna have rates actually back up and deflation then then the major indexes will all get at least cut in half. But the catch 222 is...
Read 9 tweets

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