This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three Junior Copper Miners on a Roll

1. Augusta Resource (AZC) is engaged in the acquisition, exploration and development of natural mineral resource properties and has a price-to-book ratio of 4.03, as compared to 8.4 recorded by a Canada-based mineral exploration company Duluth Metals. The company is developing the Rosemont copper property, which has an estimated reserve of 560 million tons scheduled to be developed from 2012.

Recently a Korean consortium including LG International agreed to invest $176 million in Augusta's Rosemont project for a 20% joint venture interest in the project. Besides, the consortium has also agreed to buy 30% of the copper concentrate and 20% of copper cathode and molybdenum concentrates produced annually at Rosemont.

Augusta has a payback of 2, which is lower than peers like Hudbay, with a payback of 3.2, while the leverage is 9.7 times, much higher than Hudbay's leverage of 6.8. In a scenario where metal prices are assumed at current levels, Augusta is estimated to gain 278%, and when the prices move 30% higher or lower, the stock is likely to gain 121% or 436%, respectively.

The company has a capital expenditure of $897 million, which is very low as compared to the production of 220 million pounds of copper per year. The Rosemont project is likely to be the third-largest copper mine in the U.S.. Augusta has a cash cost of $0.62 per pound.

4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AZC $2.95 -5.75%
BHP $46.44 0.00%
FCX $20.67 0.00%
HBM $8.66 0.00%
PLM $1.28 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs