Excelsior Mining Starts New Year In A Big Way, But More Gains Should Follow

About: Excelsior Mining Corp. (EXMGF)
by: Peter Arendas
This article is exclusive for subscribers.
Peter Arendas
Long only, commodities, research analyst

Excelsior Mining inititated mining activities at the Gunnison mine.

The initial copper recovery grades exceed expectations.

The Stage 1 operation should be able to generate free-cash-flow of approximately $30 million at the current copper price.

The after-tax NPV(7.5%) of Gunnison mine, after it reaches its full capacity of 125 million lb copper per year, is over $700 million, which compares favorably to Excelsior's current market capitalization of $210 million.

The copper price outlook is positive, Excelsior should be able to finance the mine expansions without diluting its shareholders.

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Excelsior Mining (OTCQX:EXMGF) started the year