Deer Horn Capital is a real Sleeper
If investors were looking for a sure indication of when a good time would be to invest in a metal, it would be when you can’t even give the shares away. I have covered the importance of using sentiment to before. When everyone wants to invest, you should sell. When no one wants to buy, you should buy. Certainly Deer Horn Capital (DHC-C) qualifies; you can’t give the shares away in spite of compelling numbers.
Deer Horn has both a PEA done six months ago and a 43-101 resource. The project is being promoted as one of the only tellurium projects in Canada even though the values for gold and silver are much higher. The Deer Horn mine has $130 million worth of gold in the ground, $48 million worth of silver and $9 million worth of Te. All numbers are in USD.
The PEA projects a nine-year mine life with a 42% after tax IRR with capital costs of $28.3 million CAD and per ton mining and milling charges of $94 a ton.
Tellurium is an interesting metal used primarily in the production of solar panels and steel. In general the metal is produced as a by-product of high grade copper refining. As the grade of copper has decreased over the past twenty years, the production of tellurium has been restricted. There are few primary producers of tellurium. Deer Horn has been recognized by First Solar as one of the world’s top four primary tellurium mines.
Tellurium is also used in thin film solar panels. The market is estimated to grow from $8 billion today to $30 billion in five years. This film solar consumes about 40% of total Te production.
With a total market cap of under $2 million CAD, Deer Horn Capital share price could be explosive when the commodity market wakes up. It’s pretty hard to see the price going down from here and literally there is no limit to the upside.
Deer Horn is an advertiser. I have participated in the private placement and naturally I’d like to see them succeed. Please do your own due diligence. Their fact sheet is located here. Read it.
Deer Horn Capital