Zacks Small-Cap Research has kicked off coverage of junior mining company World Copper Limited with a US$2.03 price target on the stock.
World Copper is developing two copper-oxide properties: the Escalones copper-gold porphyry skarn project in Chile and the soon-to-be acquired Zonia copper-oxide project in Arizona.
In a research note, Zacks cited several upcoming catalysts that could get the stock moving. Shares of the Vancouver-based company are currently trading around the US$0.70 mark over the counter and around C$0.91 on Canada’s TSX Venture Exchange.
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A merger with Cardero Resource Corp (TSX:CDU) is expected to close “in the very near future,” according to Zacks.
“Management is fast tracking a PEA on the Escalones Main deposit and has plans to expand the resource base at Escalones (Mancha Amarilla) and Zonia (NE target),” Zacks analysts wrote.
“In addition, the company holds an option to earn 100% of the Cristal project, a prospective copper porphyry property in northern Chile.”
There is also “significant opportunity to expand the Escalones resource by drilling the immediately adjacent Mancha Amarilla target, which management believes is an extension of the Main deposit,” Zacks wrote.
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On a macro level, Zacks also cited positive tailwinds for the copper mining industry, driven by the outlook for a looming supply shortage based on the confluence of increased demand from green electrification initiatives and an impending reduction of mine production.
Projected demand for copper is expected to exceed expected mine production by 5.7 million tonnes by 2030, according to S&P Global Market Intelligence.
The firm should also see continuous news flow from its exploration initiatives at Rio Negro at Escalones and the northeast target at Zonia, Zacks wrote.
The World Copper team has vast experience in navigating the mining sector within Chile, with some members having worked in the country for more than 40 years and with discovery success.
Contact Angela at angela@proactiveinvestors.com
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