Copper Mountain Mining (CMMC-T)

Copper pricing seems to be Firming here. Commodities are starting to come off from a bottom here. It is 9 years into a bull market and into a recovery. If you are going to play it, this is probably a not bad place to be. Copper looks interesting here.

He doesn’t follow this closely and doesn’t know why it is down so much. Copper has been very strong. This is a small, single asset name. If you want to play copper and its relative strength, Teck Resources (TECK.B-T) and First Quantum (FM-T) are good names and are much less risky than in the small-cap mining space.

A copper leveraged name. Have had its teething pains in terms of crushing issues, throughput issues and secondary crusher decision outstanding, so it is not an easy one to get your hands around. Feels they are treading around the breakeven point with copper prices in the $2.30-$2.40 a pound range. Debt is high, but a lot of it is with their partner Mitsubishi, which provides some protection. He wouldn’t recommend this.

(Market Call Minute.) This has gotten hit in the last couple of days. Moved from $1.50 at the bottom and up to $2.20. As copper has pulled back, this has pulled back with it. If you like copper and you think China is going to solve itself and copper prices are going to settle in over $3, it is probably a trade and goes back to $2.20.

Base metals in general might be in a better position later in the year. This one has had some ramp up issues. Not uncommon. Mill issues and not getting the right throughput. It is a candidate for a re-rating as they show the throughput. Don’t be in a big rush.

At best, he would call this a Hold. Have 75% of the Copper Mountain property in BC. This is a new mine and they have been having some challenges with getting the ore grade up and running.

(Market Call Minute) They have had difficulties ramping up project in BC. Balance sheet under some stress but they should be able to make it.