Nevada Copper Moves into the Sweet Spot of Investing
I’ve written about Nevada Copper 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.