CUO copperco limited

next leg up

  1. 2,632 Posts.
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    One has to observe that the SP is still in accumulation mode by funds etc. There is the characteristic cap and collar on the depth chart which was installed as soon as the SP settled after the last little rise. This stock is trading on very low forecast PE multiple, even allowing for the partial hedging that they have done.

    My calcs tell me that the Cash Earnings are going to be close to AUD100m pa after ramp up. So what are we looking at in terms of forward EBITDA multiple...maybe only 4 times. Then one only has to consider the production growth trajectory and it is quite easy to see $1.50 within 12 months. Then there's exploration potential...it all adds up to an excellent story and a at the chart tells me it is still not too late to get on...but it won't be long!

    regards
    DF

 
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