Marimaca Copper (MARI) - Understanding Copper Investment Fundamentals

Описание: Interview with Hayden Locke, President & CEO of Marimaca Copper Corp. (TSX: MARI)

Our previous interview:    • Marimaca Copper (MARI) - 98% Increase in R...  

Recording date: 18th October 2022

Marimaca Copper Corp. is a Canadian copper company, focused on the advancement of the Marimaca copper oxide project located in the Antofagasta region of Chile. The project is an open-pit, low-capital and low-risk operation boasting as the only major copper discovery globally in the last five years.

Contrarian investment is the term used to refer to an investment strategy in which an investor purposefully goes against the grain. A contrarian investor buys when the majority of the market is selling and sells when the majority of the market is buying. Locke explains that for him the quote from Warren Buffet “be fearful when others are greedy and greedy when others are fearful” perfectly sums up the contrarian investment sentiment.

The challenge however with a contrarian investment strategy is to identify the correct opportunities, as in a down market the share price of both good and bad commodity companies are down. One factor to identify the correct company according to Locke is if a company’s project can be financed, by either the correct partnerships or if the project has a low capital cost (CAPEX). Another factor is the mining costs associated with the operation, factors to consider in this regard include strip ratio, in the case of an open-pit operation, mineralisation and metallurgical recovery as well as the ratio between these factors. The internal rate of return of a project (IRR) is also a factor to consider according to Locke, with him believing that in a moderate commodity price environment an IRR of above 20% is a good value. The company believes that its Marimaca Copper oxide project fulfils all of these criteria.

0:00 - Company Overview
0:35 - Defining what “Contrarian Investing” means
2:17 - Recognizing the “Better” Companies in the Market
8:26 - Perspective in Selling Timing during this Current Market Environment
10:41 - What Marimaca Copper Did that will get Recognition in the Future
12:37 - Advice to Investors in Making a Copper Investment Portfolio
14:58 - Keeping on Delivering News to the Market instead of Timing it
17:05 - Expectations and Projections in the Copper Market
20:50 - Outro

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