Copperstone Resources - Q2 marks the reopening of Viscaria
Q2 report due on Thursday, 19 August Viscaria mine reopened for environmental studies in Q2 Fair value range of SEK 0.7-2.2 unchanged Q2: Viscaria opened and exploitation concession confirmed We estimate Q2 sales of SEK 0m and EBIT of SEK --3m (-2m), with opex ramping up slightly as Copperstone expands its team and accelerates its work towards the environmental permit application. In addition, EO expenses related to the directed rights issue completed in April are expected to be SEK 1.5m. The most notable event during Q2 was the reopening of Viscaria, with the purpose of conducting environmental studies towards the permit application. In other news, the Swedish government recently confirmed Copperstone’s exploitation concession Viscaria k no.
7, which covers an area of 64 hectares that, according to management, contains roughly 15% of Viscaria’s total mineral assets. The decision means that this area can now be included in the company’s permit application. This has no impact on our estimates as it is included in our assumptions and hence we make no changes, but it is positive for the project development.
Total Cu value of ~SEK 70bn, up 21% YTD At the current copper price of USD 9,397/tonne (up 21% YTD), the total value of Copperstone’s measured, indicated, and inferred copper resources amounts to ~SEK 70bn. The iron resources in the Fe Domain of Viscaria’s D zone are valued at ~SEK 17bn based on the current iron price of USD 220/tonne (USD/SEK rate of 8.6775). Our long-term outlook for metal prices remains positive as we see strong underlying demand growth.
Fair value range of SEK 0.7-2.2 per share reiterated We maintain our fair value range of SEK 0.7-2.2 per share. The work towards the permit application is proceeding as planned, i.e. the plan is still to submit the application before the end of ’21.
We maintain our view that H2’21 could be eventful for Copperstone provided the environmental permit is submitted in accordance with the communicated tim....