Copper is today at 3.98/LBS
Let's take a closer look at Quadra
Quadra should produce 38 million lbs of copper.
At a price of $3.90/lbs and a cost of $1.00/lbs
This company would produce a cash flow of $110 million.
The company has 64 million share outstanding.
This would give us $ 1.72/share cash flow per quarter or $ 6.88/year
We can usually expect a share price to be at 8x cash flow, but we will use 6x to be safe.
This would give us a share price estimate of $41.00
Raymond James just raised their target to $ 40.00/share.
Here we sit today at $ 21.00
But I think it should be higher. I don't believe that the market is pricing Robinson fully.
Therefore, the market is completely igorning Quadra's other mines Carlotta and Seirra Gorda mines.
I expect Carlotta to be operating very soon. Calotta should produce 65 million lbs of copper at a cost of $1.55. Well add another $160 million to the $440 million it will already generate.
Sierra Gorda -it speaks for itself - 15 billion lbs of copper (indicated and inferred). Think of it - it could produce 200 million lbs/year for 20 years and still have only used 4 billions lbs of its resouces.
How about Malmbjerg, a future production of 20 million lbs/year of Moly ( $ 700 million revenue)
This should only push the price up higher. $ 50.00/share?
Consider the warrants. They are at $ 6.50. If the stock were to hit $ 50.00, which I believe to be reasonable, then the warrants would go to $ 35.00. Imagine that, a 5 bagger, and all you have to do is sit there and do nothing.
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