Chile accounts for a quarter of the world’s mined copper and has the most reserves. Los Andes Copper is located in Chile’s Central Copper Belt between three large copper mining operations by global majors. Last week Los Andes announced they are “considering options to finance development… including potential sale”. Historically such processes lead to significant rerating. Los Andes is up 40% in last two month, but still trades at 0.1xNAV. Strategic partnership with a major or a sale could multiply the stock price. Definitely worth further look and research.
Link to Los Andes latest Investor presentation:
Latest Bloomberg Article:
Los Andes Copper Is Said to Weigh Funding Options Including Sale
2023-07-03 18:41
Dinesh Nair, James Attwood and Vinicy Chan
(Bloomberg) — Los Andes Copper Ltd., a mining exploration
company, is considering options to finance development of a
deposit it owns in Chile, including a potential sale of the
asset or the company, according to people familiar with the
matter.
The Vancouver-based firm is working with advisors to study
strategic options as it prepares for the next stage of the
Vizcachitas project in Chile, said the people, who asked not to
be identified because the information is private. Los Andes
Copper isn’t currently running a formal sale process, but may
start gauging interest from potential buyers, the people said.
Los Andes Copper declined to comment.
Vizcachitas is expected to become a 180,000-metric-ton-per-
year mine, roughly the size of Andina owned by Chile’s state
miner Codelco, the world’s largest copper producer. Development
costs for a project of that size are likely out of reach for Los
Andes Copper, which has a market value of $380 million. The
company’s stock has jumped about 30% in 2023.
Supplies of copper, the metal used in everything from
electric vehicles to wind turbines, are expected to tighten
significantly as the transition away from fossil fuels drives a
surge in demand. That outlook has led large producers to step up
their interest in beefing up reserves both through acquisitions
and exploration. Newmont Corp. recently secured a A$28.8 billion
($19.2 billion) deal to buy Australian rival Newcrest Mining
Ltd. in a move that will help boost its resources of copper.
Read More: Copper M&A Heats Up as Lundin Pays $950 Million
for Chile Mine
Los Andes Copper was recently authorized to restart
drilling at Vizcachitas after fulfilling conditions laid out by
an environmental court.
Read More: Billionaire Friedland Sees Copper ‘Train Wreck’
as Supply Stalls
Chile accounts for a quarter of the world’s mined copper
and has the most reserves. Companies are weighing investment
decisions in the nation as regulatory risk subsides. An initial
constitutional process that threatened radical changes has given
way to a more conservative format, and the government agreed to
limit tax hikes.
SeekingAlpha Article on Los Andes Copper:
We are long Los Andes Copper.
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The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.
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