Q: Good evening,
Could you please offer your opinion after their most recent update. Could anticipated future financings cap the stock for a while?
Thank you.
Could you please offer your opinion after their most recent update. Could anticipated future financings cap the stock for a while?
Thank you.
5i Research Answer:
CS released a feasability study for its Santo Domingo project in Chile, and its NPV was calculated to be $1.7B, with a strong IRR of 24.1%. The cost of the project is estimated to be $2.3B, higher than the NPV, and the company noted it intends to assess the optimal financing structure for the project - this could include bringing in a minority partner.
We feel a lot of its price will be determined by the spot price of copper, but also the results from its new mine alongside a potentially higher debt load. We are still comfortable with this name and its growth prospects.