PERU's Maiden Resource: Fundamental Analysis.
Updated
This analysis is a 3 month outlook and is dependent on fundamental factors:
1. Market Sentiment - Gold, Silver, and Copper need to exhibit at least a sideways movement (however choppy) throughout Q1. Once Q1 financial reports are released from miners it will become obvious that debt is being paid off as precious metal and base metal prices retain their current evaluation. Companies will net record profits. Merger and acquisitions will be on the horizon within the sector. Speculators will begin to look for leverage in the jr exploration market once again.
2. Chakana Copper Corp is about to complete a 15,000m drill program. This program will provide the assays and infill drilling to establish a maiden resource. The goal is to provide a resource of at least 10Mt. Consistent news flows, marketing, along side market sentiment should allow the company to continue a slow but steady bullish uptrend after bottoming with the gold price back in November.
3. If Chakana Copper Corp manages to refinance and fill their treasury with minimal share dilution and provide a resource estimate of 10mt Copper at 1-2% copper EQ, it would be simple to evaluate the company at 100m market cap as many comparable JR's are worth double with a similar resource. Many are worth double providing under 30,000 meters of drilling or as many excellent drill results, and confirmed discoveries. Currently the company trades at $50-60 Million Mcap.
4. A recent evaluation by Noble Capital Markets evaluated the companies target price at $0.80 USD approximately 1.00CAD.
In my opinion a 100% gain in the short term is a conservative bet as it doesn't meet the target evaluation. Catalysts are in place for continued share appreciation and market sentiment is on the rise (even if slowly). If the resource estimate manages to grow from 10mt to 20mt, (which is now likely as the Huancarama complex is proving to be very large and mineralized) it is easy to imagine the company to trade at a $200 million mcap or more. My conservative bet is set at %400 increase.
The technical chart analysis is in support of fundamentals.
A mine is beginning to shape up at Chakana Coppers Soledad Property. This analysis does not account for potential acquisition, only speculation based on near term fundamentals.
1. Market Sentiment - Gold, Silver, and Copper need to exhibit at least a sideways movement (however choppy) throughout Q1. Once Q1 financial reports are released from miners it will become obvious that debt is being paid off as precious metal and base metal prices retain their current evaluation. Companies will net record profits. Merger and acquisitions will be on the horizon within the sector. Speculators will begin to look for leverage in the jr exploration market once again.
2. Chakana Copper Corp is about to complete a 15,000m drill program. This program will provide the assays and infill drilling to establish a maiden resource. The goal is to provide a resource of at least 10Mt. Consistent news flows, marketing, along side market sentiment should allow the company to continue a slow but steady bullish uptrend after bottoming with the gold price back in November.
3. If Chakana Copper Corp manages to refinance and fill their treasury with minimal share dilution and provide a resource estimate of 10mt Copper at 1-2% copper EQ, it would be simple to evaluate the company at 100m market cap as many comparable JR's are worth double with a similar resource. Many are worth double providing under 30,000 meters of drilling or as many excellent drill results, and confirmed discoveries. Currently the company trades at $50-60 Million Mcap.
4. A recent evaluation by Noble Capital Markets evaluated the companies target price at $0.80 USD approximately 1.00CAD.
In my opinion a 100% gain in the short term is a conservative bet as it doesn't meet the target evaluation. Catalysts are in place for continued share appreciation and market sentiment is on the rise (even if slowly). If the resource estimate manages to grow from 10mt to 20mt, (which is now likely as the Huancarama complex is proving to be very large and mineralized) it is easy to imagine the company to trade at a $200 million mcap or more. My conservative bet is set at %400 increase.
The technical chart analysis is in support of fundamentals.
A mine is beginning to shape up at Chakana Coppers Soledad Property. This analysis does not account for potential acquisition, only speculation based on near term fundamentals.
Note
Edit: %400 Increase over the long term.
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