Nevsun Is Hiding A Lot Of Potential Aug. 30, 2016 11:02 AM ET|9 comments | About: Nevsun Resources Ltd. (NSU) Peter Arendas Peter ArendasFollow(605 followers) Long only, commodities, research analyst Send Message Summary
Nevsun diversified not only its production mix but also its geographical risks.
The Bisha mine is profitable at current metals prices and it generates enough cash to finance the exploration and development activities in Eritrea as well as in Serbia.
The Timok Upper Zone mine should be in production by 2020, at a very reasonable cost.
The Timok Lower Zone can turn out to be a giant copper-gold deposit that will be in production for decades.
If zinc production start-up goes well and metals prices don't tank, it is reasonable to expect that Nevsun's share price will cross the $5 level over the next 12 months.
Nevsun Resources (NYSEMKT:NSU) is a copper producer whose valuation has long suffered for an increased political risk. Nevsun's cornerstone asset, the copper-gold-zinc Bisha mine, is located in Eritrea, a country in eastern Africa that is known for a higher level of political risks. As a result, the market capitalisation of Nevsun Resources tends to be lower compared to its peers, although the company is able to remain profitable also at the current copper prices that are close to multi-year lows. more: http://seekingalpha.com/article/4003043-nevsun-hiding-lot-potential
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