I recently did some research on the cost to produce a lb. of copper and another junior copper mining company in Arizona is producing copper at $.145 per lb. Like SIRG, they are an open pit mine. Underground miners will have higher costs.
So with copper currently in the $3.45 range that is $2.00 per lb. cash flow or profit per lb. With a target of 5,400,000 lbs its first year, that equates to over $10,000,000 cash flow and profits after the loans are paid off. With a 10 yr mine life, that is $100M and it is highly doubtful that copper prices will remain this low for the next 10 yrs.
Copper prices have risen 4% a year the past few years.
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