Thursday, December 19, 2013

Copper M&A: Lumina Copper Corp. Receives “Sector Outperform” Rating from CIBC LCC.v, MUX, TNR.v


  CIBC has restated its "sector outperform" rating for Lumina Copper and we will consider it as another sign of improvement of business climate in Argentina. Globe and Mail talks about Lumina Copper "seen as potential target" as well today. It looks like Copper stories in Argentina are back among the industry insiders and Taca Taca and Los Azules Copper deposits will receive the deserved attention now. McEwen Mining and TNR Gold should be getting on the radar screens as well with Los Azules Copper developments.

Los Azules Copper - McEwen Mining And TNR Gold: Yamana Gold to invest $450 million in Argentine mine MUX, TNR.v, LCC.v

  "It looks like the shift in Argentina for the better is happening for real this time. Rob McEwen has discussed it in his recent presentation and that in his opinion "we have seen the low in Argentina after  a lot of disappointment". Shevron special Shale Oil deal, repayment to Repsol and now Yamana Gold investment are certainly the things we would like to see now after elections. Lumina copper is holding above CAD5.00 these days and McEwen Mining and TNR Gold should benefit from Los Azules copper revised valuation now."

In September, McEwen Mining announced an updated PEA for the Los Azules Copper project. The results from the PEA demonstrate that Los Azules has the potential to become one of the largest, lowest cost copper mines in the world. In addition, there remains excellent exploration potential to further expand the size of the existing mineral resource. Highlights from the PEA are shown below:
  • Pre-tax Net Present Value of $3.0 billion (8% discount rate) and an Internal Rate of Return of 17.7%.
  • Annual copper production during years 1-5 to average 258,000 tonnes (568 million lbs), which would have placed it in the top 3%1 of copper mines in the world during 2012. Life of mine annual copper production to average 171,000 tonnes (377 million lbs) over 35 years.
  • Indicated resource of 5.4 billion pounds of copper (grading 0.63% Cu) and 0.8 million ounces of gold (389 million tonnes with a cut-off grade of 0.35% Cu) and Inferred resource of 14.3 billion pounds of copper (grading 0.46%) and 2.6 million ounces of gold (1,397 million tonnes with a cut-off grade of 0.35% Cu).
  • Initial capital costs to construct the mine and process plant have been estimated at $3.9 billionwith a payback on a pre-tax basis has been estimated at 3.8 years at $3.00/lb copper and$1,300/oz gold.
1 Based on internal market data.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
The PEA has been filed under the Company's profile on SEDAR ( pursuant to the requirements of Canadian National Instrument 43-101 and is also available on the Company's website -"

All slides are from McEwen Mining presentations.

Lumina Copper Corp Receives “Sector Outperform” Rating from CIBC (LCC)

Lumina Copper Corp (CVE:LCC)‘s stock had its “sector outperform” rating restated by analysts at CIBC in a research report issued to clients and investors on Wednesday,AnalystRatingsNetwork reports.
A number of other firms have also recently commented on LCC. Analysts at LB Securities cut their price target on shares of Lumina Copper Corp from C$16.00 to C$12.50 in a research note to investors on Monday, October 28th. They now have a “buy” rating on the stock. Analysts at Laurentian cut their price target on shares of Lumina Copper Corp from C$16.00 to C$12.50 in a research note to investors on Monday, October 28th. They now have a “speculative buy” rating on the stock. Two analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and an average price target of C$15.18.
Lumina Copper Corp. (CVE:LCC) is a Canada-based development-stage company."

2013-12-19 09:07 ET - In the News
The Globe and Mail reports in its Thursday edition that CIBC World Markets analyst Tom Meyer is holding firm on his "sector outperformer" rating for Lumina Copper ($5.40). The Globe's Darcy Keith and Jody White write in the Eye On Equities column that Mr. Meyer targets Lumina Copper shares at $15. Mr. Meyer says the 100-per-cent-owned Taca Taca project in Argentina is one of the more attractive copper-gold-molybdenum development projects not yet owned by a major. Mr. Meyer says just because M&A activity in the copper development space is not making headlines it does not imply that the majors have stopped looking for development opportunities. He says, "In fact, now is the time that detailed analysis can be carried out in preparation for an eventual positive turn in the cycle." The average Street target is $14.55. Raymond James analyst Adam Low said Lumina Copper was a likely takeover target in the Eye column on Dec. 16, 2011. He rated Lumina "strong buy." It was then worth $12.40. The Globe's Ian McGugan said on May 2, 2012, that the smart money was buying Lumina. It was then worth $13.15. Mr. Low rated Lumina "strong buy" in the Eye column on April 12, 2013, when it could be had for $7.60.

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