I've written about Nevada Copper Corp. (NCU:TSX; NEVDF:OTC) in the past. The world has only a ten-day supply of copper on hand and that all by itself should move the price of both copper and Nevada Copper higher. Alas, in the short term the price of copper has declined.
The company maintains that they remain on track to actual production in Q4 of 2019. A recent article in mining.com revealed a major step forward as they showed a $115 million line of credit from a German bank, a $40 million private placement and off-take agreements with two European metal companies for a working capital agreement worth an additional $35 million.
The sweet spot of investing is to buy into a company just as they ease into production. The sweetest spot in investing is when the commodity that company produces is also increasing in price. I won't attempt to forecast any price for copper, I'm not that smart but clearly copper is cheap right now.
We are seeing the earth tremors suggesting a sea change for the stock market and for resource companies. Investors in the two flavor of the day investments, marijuana and Bitcon, are soon going to learn the perils of buying at market tops. Wise investors will be seeing safe haven in the unloved and cheap markets such as resources as $250 trillion worth of used toilet paper disappears into bitcon heaven.
Nevada Copper has a tiny market cap of about $262 million. With a change in the copper market and going into production investors will be looking for the sweet spot of investing and Nevada Copper will come into its own.
Nevada Copper is an advertiser and I own shares bought in the open market. Do your own due diligence.
Nevada Copper
NCU-T $0.395 (May 13, 2019)
NEVDF-OTC 662 million shares
Nevada Copper website.
Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
[NLINSERT]Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Nevada Copper. My company has a financial relationship with the following companies mentioned in this article: Nevada Copper is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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