Far East Capital Newsletter
Celsius - an institutional-sized copper project in a tiny company
17 Sep 2022

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Celsius - an institutional-sized copper project in a tiny company

As I was doing the charts on Tuesday even i saw the All Ords and Metals and Mining indices had rallied so strongly that they were bumping into the resistance lines of the downtrends that have dominated the market this year. The signal was clear. They were about to turn down again. Right on cue we had the inflation figures in the US a few hours later and bingo, the markets took another kick in the guts.

Celsius is the classic contrarian buy. The market is not yet in love with it, but I would suggest that the market doesn't understand it. That makes it a buyers market and investors can get set at what is likely to be the bottom of the price cycle.
What I really like about Celsius is its very low market capitalisation of only $20m notwithstanding it has a large project with sound economics that could support a mine life of > 50 years. It is actually an institutional-sized project in a penny dreadful shell. The Company needs to start behaving like an institutional stock in waiting.
Everyone is telling us that we need a dramatic increase in the supply of copper to meet the challenge of alternative energy. This project is exactly what the copper world needs now.
 

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