Far East Capital Newsletter
Cyprium Metals; an emerging copper company priced at nominal levels
24 Oct 2020

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Cyprium Metals; an emerging copper company priced at nominal levels

We have had a great six months in resources markets, particularly with gold. However, good times don’t last forever. How far out into the future can we see? For what it is worth, Goldman Sachs is forecasting a commodity bull market stoked by inflation and new demand driven by additional fiscal and monetary stimulus. If it is correct, the good times will keep rolling.

Another thought is that we are seeing a once in a generation bull market with many new players in the speculative end. They don’t yet know what it is to lose money when the music stops. They have no fear and so they will stay at the table well after the more experienced traders will have decided to cash out. Again, this supports the view that this market will keep rolling.

While everyone is off chasing gold companies and occasionally things like rare earths, the playing field for copper companies is a lot smaller. It is even smaller when you discard those companies that are all about promotion rather than progressing to production. Actually bringing on- stream a profitable copper producer has been a challenge over the years. We haven’t seen many of these in the junior end of the market, so it is with some caution that I cast my eye over Cyprium Metals (CYM) when I was first introduced to it a week ago. However, I have quickly started feeling quite positive about this company. 

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