Why PXC is special vs. other junior miners27 Nov 2021 12:10
Investors in PXC at this stage should remember that the current market cap is underpinned (in fact now massively lower than it should be) by the fact we have ~$2bn MI&I resource at Empire Open Pit which will be in production near term throwing off ~$40-50m per year in FCF
Offices are going up, diggers active at the Open Pit & the community are engaged
The debt is very small at ~$52m and can be paid back in 1-1.5 years at current prices
All in Idaho USA
Now, the Empire Sulphides & Porphyry, Red Star, Navarre Creek, Cobalt JV & Horseshoe etc are all huge exploration upside which will be funded by the very profitable Open Pit (Cobalt JV is upside only pretty much with little/no PXC costs from here)
Once some of these are proven up individual projects or the whole company could be bought by a major at many multiples of today
I think some people are treating PXC like a exploration company with lots of build up & focus on drill results whilst forgetting the market cap is supported (now under supported) by a excellent Open Pit
Many of the exploitation results so far have been well above averages & some at world class levels thus supporting external experts (Nigel Maund) view of a world class deposit at Empire which shares similarities to the worlds biggest Copper mine in Peru
Global average Copper grades are around ~0.4-0.6%, expectations need to remain at this level, many of this weeks results were well above that. In addition the Silver grades were huge which most people missed
The big picture here is important, the way I view PXC is that there is a proven resource on its way to production fairly soon which supports a ~70-90p sp alone for how close we are, an experienced Board and a 10-20x upside from here if I’m patient for 3-5 years due the exploration projects
I buy & hold up to 100p then tuck away for 3-5 years
My views as always DYOR
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