Opinions
Brent Cook
Reservoir Minerals
RMC-X
TOP PICK
Jun 26, 2015
Stock price when the opinion was issued
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Have had some spectacular drill holes with their partner Freeport McMoran (FCX-N). They are prospect generators. Believes that almost all the downside is based on the mineralization discovered so far and he feels there is a possibility that there is a periphery at depth that is of a size that will interest Freeport.
This is subject to a takeover offer from Nevsun (NSU-T). The knock against Nevsun is, will they do something stupid with the $400 million that they have in the treasury. The next question is, how do they grow, by buying the superb deposit in Serbia. He expects Nevsun will go up substantially in price having acquired this company. The cheaper way to play this is by owning the company that is being acquired.
A great group. Have about $30 million in cash, that will last them 5 years at the rate they spend it. Have a joint venture with Freeport and made a discovery of a high grade, high sulfidation copper/gold system, and basically have 65 million tons of 2.1% copper and 1.2 g of gold. Very rich and very economic. Freeport is looking for that plus the portion that comes down below it, which should be. They’ve done a lot of to deep drilling and there are 4 rigs on site right now.