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Saturday, February 17, 2007

Copper Fox Metals introduction

Technical picture is Here.
Latest PP at 0.65 CAD. One of the stocks in Commodities sector with biggest Factor known to me. Factor is defined as Ratio of Potential market Cap to recent market cap. Potential market cap is defined as 10% of Rock value of resources in the ground. Important Teck Cominco has back in right of up to 75% if they will buy they have to pay 4 times CUU.v expenditure before Feasibility study and CUU.v will keep 25% without any financing required from it. It is Silver, Gold, Cu and moly play. Copper Fox has an option to acquire Teck Cominco’s 93.4% interest in the Schaft Creek deposit and controls Rock value of 38.3 billion USD at Cu lb 2.5usd. With following assumptions: 10% of RV=3.8 bil USD, 25% =0.95 bil USD=1.1 bil CAD. 1.1 bil Cad + 80 mil CAD (4 times expenditure)=1.18 bil CAD With financing of 15 mil shares at 1.0 CAD to finish Feasibility Study CUU.v will have FD=87 mil shares. Potential Price Target=13.6 CAD, today price is 0.79 CAD. Factor is 13.6/0.79=17. I am in from 0.51-0.6 so far my Bull case is correct.
Educational purposes only, don't forget to think as usual.

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