Thread by @BambroughKevin

$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

Npv5
$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