Raymond James Analyst Bullish on Global Copper Corp.

Global Copper Corp. (GOCPF.PK) is a good five years from producing copper and molybdenum at its Relincho project in Chile, according to Raymond James analyst Tom Meyer. But, he is predicting major value accretion as the project advances, and has initiated coverage of the stock with a "strong buy" rating, and a six-to-12 month target of C$12.00 a share (it's currently about C$5.00).

Mr. Meyer outlined a number of reasons to buy Global Copper: its low valuation compared to peers; the prospect for resource growth; value accretion as the project advances; and the fact that the company could become a consolidation candidate.

In a note to clients he wrote: the size of the project, the high quality of work being conducted, not to mention management's track record of maximizing net asset value, places Global Copper's Relincho project on the radar screen of larger mining entities, in our opinion. With each additional positive data point, we expect the list of potential acquirers to grow.

Mr. Meyer estimates that Relincho will cost about $1.6-billion to construct and will begin producing in 2013 with average annual production of 129,900 tonnes of copper and 4,100 tonnes of moly. Global Copper also has stakes in the Taca Taca project in Argentina (optioned to Rio Tinto (RTP)) and in Coro Mining Corp., but Mr. Meyer said those are less important than Relincho.

Comments

[Toto-13]

Yes, only that when economic conditions worsen, copper will go down in price and wait, looking at this chart, maybe we can loose another 15-20%...
Rob,
WallastonInvestments.c...