Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi MM, In brief, from what I have read, Macquarie seems to prefer CSC to SFR. To what extent, if at all, do you agree with Macquarie and what are your thoughts on CSC in general? Is it under consideration for inclusion in one of MM’s portfolios should you have spare cash and a need for increased copper exposure and, if so, at what price? Cheers, Darren
Hi Darren,
For copper exposure in our Active Growth Portfolio we already hold Sandfire Resources (SFR) plus BHP Group (BHP) and Evolution Mining (EVN) who both generate more than ~25% of their revenue from Cu. Hence if we wanted to consider Capstone Copper Corp (CSC) it would most likely be as a replacement to SFR.
Dual-listed, Canadian-based Capstone Copper Corp (CSC) only began trading on the ASX on 8 April. For those not familiar with the miner, its almost twice as large as Sandfire with a market cap. of $7.8bn compared to SFR at $4bn. At this stage the two miners are moving in sync with the underlying Cu price:
At this stage we are happy to stay with the strength of SFR but will be evaluate CSC over the courser of time.
NB Macquarie have slapped an Outperform on CSC with a target ~over 20% above todays close.
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