Copper Mtn. Makes Wellington West's Top 10 for 2010

STEVE PARSONS, Wellington West Capital Markets (01/12/2010)
"Compelling valuation for well-advanced largely de-risked copper development story
  • Remains cheap relative to peers on a P/NAV basis (0.5x NAV8%).
    Especially so considering Cu Mtn is among the most advanced near-term development projects with financing, permitting and off-take deals set.

  • Higher copper price futures bode well for Copper Mountain.
    A shift higher in the fwd curve and a growing arb between the fwd strip and consensus Cu prices bodes well for value accretion and M&A.

  • Exploration news and potential M&A to fuel share price in 2010.
    More immediate catalysts incl. receipt of amended Mines Act Permit to approve the new mine plan and authorize commencement of production.

  • Reiterate Strong Buy rating and $3.50 target.
    Our target is based on 0.75x multiple of our 8% NAV est. of $4.59/sh. At long-term US$2.50/lb Cu & 0.90 f/x, NAV est. increases to $6.60/sh."

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