DESCRIPTION: Vancouver-based Augusta Resource Corporation is a base metals company focused on advancing the Rosemont copper-moly deposit near Tucson, Arizona. Rosemont hosts a large copper/molybdenum reserve that is expected to account for 10% of U.S. copper output once in production in late 2012. The exceptional experience and strength of Augusta's management team, combined with the developed infrastructure and robust economics of the Rosemont project, will propel Augusta to become a solid mid-tier copper producer within the next four years. Augusta is traded on the Toronto Stock Exchange and the NYSE/AMEX under the symbol AZC, and on the Frankfurt Stock Exchange under the symbol A5R.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Paying up for upside? HudBay bought 11% of Augusta (13.6% on a fully diluted basis) by way of a $30M private placement—10,905,590 units at a price of $2.75/unit (that's more than a 25% premium to Monday's closing price of $2.19). . .Augusta has also granted HudBay the right to participate in future equity financings that might be undertaken by Augusta in the two years following closing on a basis that would permit HudBay to maintain its then current percentage equity ownership of Augusta. This right will not impair Augusta's ability to raise financing at the corporate or project level. Proceeds from this placement will be used to fund development at the Rosemont project and general working capital.
Augusta is a development-stage company with a 100% interest in the very large but undeveloped Rosemont copper/molybdenum/silver project near Tucson, Arizona. The deposit has significant proven and probable sulphide reserves of 546.3 Mts. grading 0.45% Cu, 0.015% Mo and 0.13 oz./ton silver, containing in-situ metal of 4.9 billion lbs. (Blbs.) copper, 163.9 Mlbs. molybdenum and 71 Moz. silver. In addition to HudBay, Augusta also has Ross Beaty and I.G. Investment Management Ltd. as large disclosed shareholders with 11.9% and 8.8% interests, respectively."
China Analyst (08/06/10)
"Augusta Resource Corp. is the 8th best-rated micro-cap stock. It is rated positively by seven brokerage analysts. It is covered by seven brokerage analysts."
Canaccord Capital, Morning Coffee
(06/18/10)
"Canaccord Genuity Base Metals Analyst Orest Wowkodaw initiated bullish coverage on Augusta Resource, a development-stage company with a 100% interest in the very large but undeveloped Rosemont copper-molybdenum-silver project near Tucson, Arizona. The deposit has significant proven and probable sulphide reserves of 546.3 million tons grading 0.45% Cu, 0.015% Mo, and 0.13 oz/t silver, containing in-situ metal of 4.9 billion lbs. copper, 163.9 million lbs molybdenum and 71.0 million oz. silver. Based on a 2009 feasibility study, Wowkodaw forecasts total annual average production of 210 million lbs. copper and 4.5 million lbs. molybdenum at a relatively low average cash cost of $0.92/lb. Cu over a 20-year mine life. This would make Rosemont the third largest operating copper mine in the U.S., representing approximately 10% of domestic production.
Wowkodaw is bullish on the story based on four conclusions: 1) Copper leverage—Augusta has significant leverage to copper, which remains his preferred near- to medium-term investment vehicle in the base metals complex; 2) Industry consolidation—given the project's significant size, attractive operating cost and capital intensity profile, low political risk, and excellent local infrastructure, Wowkodaw anticipates Augusta to become a strong takeout candidate upon permitting; 3) Valuation—Augusta is currently trading at an extremely compelling 75.6% discount to his 10% NPV of C$7.14 per share vs. a 49.1% discount for the Cu developer peer group; and 4) Permitting Re-Rating—while the permitting process has taken longer than expected, he anticipates the receipt of the required development permits by the end of 2011, resulting in a material rerating in the shares. Wowkodaw believes permitting delays in exchange for political risk certainty is an acceptable tradeoff. In his view, Rosemont is clearly one of the world's best-undeveloped copper projects, and at current levels, the shares represent a very compelling risk/reward trade off."
Canaccord Capital, Morning Coffee
(04/19/10)
"A delayed Beaty bounce? Ross Beaty announced Friday that on April 15, 2010, he indirectly acquired ownership and control of 3,350,000 common shares of Augusta Resource upon the exercise of 3,350,000 common share purchase warrants of Augusta at an exercise price of $2.30 per warrant, for a total purchase price of $7,705,000. As a result of this acquisition, Beaty now owns, directly or indirectly, a total of 14,535,000 common shares of Augusta, together representing approximately 11.88% of the 122,350,480 common shares currently outstanding. Augusta is a base metals company focused on advancing the Rosemont copper-moly deposit near Tucson, Arizona. According to the company, Rosemont currently hosts a large copper/molybdenum reserve that may account for about 10% of U.S. copper output once in production in 2012."
The Gold Report Interview with Steve Parsons (10/06/09)
TGR: What are some of other potential plays?
SP: One of the most logical plays that could benefit from the same theme [near-term trend of foreign smelters buying copper mining companies] is the Augusta Resource Corporation (NYSE/AMEX:AZC) project—Rosemont in Arizona. It's one of the largest undeveloped copper stories that has no off-take deal in place. Importantly, the concentrate should be of a very high quality, with a high copper grade and few deleterious elements. Of course, the smelters also want stability of supply, which should be very good in Augusta's case because it's coming from the U.S. For these reasons, I'd say smelters probably are vying for the Augusta concentrate.
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