Costs matter in mining, but not always in the way that investors think.
All things considered, it is better to have the lowest possible cost of
production, but companies like Copper Mountain Mining (OTCPK:CPPMF,
(CUM.TO)) with elevated costs can offer more upside when commodity
prices rise. This company has done many things right, including getting
its southern British Columbia mine up and running both on time and on
budget, but production challenges and high costs loom as ongoing
challenges. These shares aren't tremendously interesting at prevailing
prices, but if copper goes on a tear, these shares should outperform the
peer group.
Click this link for more:
High Costs Leave Copper Mountain Mining Leveraged To Higher Prices
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