Excelsior Mining Corp (EXMGF)

[Arizonabilly]

Random thoughts: End of year cash $21 million. Undrawn Nebari line of $15 million. The question is whether $36 million is enough to pay monthly operating costs (about $1.5 million), restart JCM and build the raffinate plant. $36 million would be supplemented by copper sales from JCM. No need for raffinate plant if well stimulation works.

There is speculation that they’re talking to bigger players not necessarily to take them out but to JV. A big player could fund everything for a piece of the action. At $4.40 copper the Gunnison NPV is about $1.5 billion. That’s a lot of value for a stock trading at a $56 million (USD) market cap (less than 4% of NPV). Even if a JV partner funds all capex, (and possibly buys out the stream and royalties) to earn say 50% that’s still a $750 million NPV for Excelsior shareholders. Value that at 60% of net NPV and the stock is worth around $1.65 a share. (274 million shares)

There is simply too much copper in the ground at Gunnison to let go. Someone will want it.