A new research report by international research analysts ARC has revealed ASX listed copper-gold mining company Celsius Resources is undervalued.
The company, which holds substantial copper-gold mining interests in the Philippines as well as cobalt-copper assets in Namibia should command a market valuation of $0.11, the report explains.
The company’s current share price of $0.026 (at Monday’s close) is four times below this projection.
“This report validates Celsius Resources’ belief that our portfolio of copper-gold assets in the Philippines and cobalt-copper project in Namibia are materially undervalued,” said Celsius Resources executive director Blair Sergeant.
“As the world becomes increasingly electrified on the back of decarbonisation policies, demand for high-grade copper and cobalt are expected to surge.”
The report points to sustained demand for green-tech (copper and cobalt), global supply constraints, and high-grade quality of Celsius’ assets as the key drivers underpinning Celsius’ growth potential.
Copper and cobalt are key ingredients in batteries and wiring used in recharging infrastructure, batteries and renewables.
According to a recent Bloomberg NEF report, more than five times more copper will be required by 2030 just to satisfy the growing demand from lithium-ion batteries.
Solar and wind power generators need up to six times more copper compared with conventional power-generating sources and the electric vehicle market (electric and hybrid-electric vehicles) contain up to four times more copper compared with combustion engine vehicles.
Click here to read the full report.
This article was supplied by Multiplier Media.