Opinions
Michael Giordano
Duluth Metals Ltd.
DM-T
BUY
Aug 14, 2013
Stock price when the opinion was issued
You might be interested:
They’ve got a massive copper/nickel plus PGM deposit in Minnesota that is being developed by their joint venture partner Antofagasta. Antofagasta has to spend $158 million on this and then take it to feasibility and Duluth is carried for 60%. Effectively you are getting the company for free and whatever else they’ve got going is your upside.
Sees this as a poly metallic mineral deposit that has a very, very complex metallurgical recovery strategy. He sees high front-end capital costs, which probably can’t be raised in this cycle. The deposit will go into production at some point in time, maybe 7 years from now, maybe 11.
He bought it because they have a large, low grade copper/nickel deposit in Minnesota. They were expecting to find a high grade feeder, but did not after drilling, so he sold out of it. It is now all about getting the metallurgy to work and it is a complex system. It is advancing and they have a shot.
(Market Call Minute.) Major operations in Minnesota. Platinum group metals based precious metals.