C6C 0.00% $2.79 copper mountain mining corporation

It doesn't look good for CMMC, but I don't think it's...

  1. 6,270 Posts.
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    It doesn't look good for CMMC, but I don't think it's management's fault. The only real problem is that it's a high-cost operation and the price of copper has taken a hit, but that was already known so it was to be expected. If you want to blame anybody, blame Trump, not CMMC's management.

    I pointed out several times between the takeover and now that their mine has high debt and a breakeven of about $3/lb, copper is now trading at about $2.60 so of course they're struggling. The info was all there in the previous financial statements and if anyone elected to hold despite being so heavily dependent on a price of copper above $3 then I don't think you can blame management, there's nothing out of left field in the report. If copper had gone to $3.50 we'd be sitting pretty, the cashflow would be through the roof.

    It sucks that AOH holders lost their cash pile, but AC tried to find a corporate solution for years and this was the best offer he got. We had no chance of getting it funded outright and I can tell you for sure that if we'd rejected it we'd still be sitting here waiting for AC's quarterly updates on how no acceptable offers have come in, as our little cash pile was further frittered away on admin and mediocre exploration results.

    Anyway, now CMMC is staring down the barrel with $40M cash in hand and $250M of debt to be paid back over 4 years. It's currently generating about $50M pa positive cashflow from operations (before sustaining capex) so if the copper price stays here they will need to try to raise equity just to keep Copper Mountain running, never mind getting Eva started.
 
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Currently unlisted public company.

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