Global | Mining | TSX:NCU
The next mid-tier US copper producer
Following a financial restructuring in early-2018, Nevada Copper needs to raise only a further US$80m to bring its fully-permitted, 100%-owned Pumpkin Hollow copper project in Nevada into production. PH consists of two mines; PH U/G will produce 52Mlb pa of payable copper in concentrate and we believe a second stage open-pit can be financed from cash flow, to increase production by up to 180Mlb pa.
With US$200m in sunk capex, including a shaft already at mining depth, we believe that Pumpkin Hollow is the next cab off the rank in terms of major copper development projects. In our view, NCU offers near-term production, strong management team, best-in-class leverage to rising copper prices, a low risk jurisdiction and also includes exploration, and hence valuation, upside.