As uncertainty over the covid-19 pandemic rages on, the copper market finds itself in a topsy-turvy of highs and lows. After recently reaching a 28-month high, it went straight into 3 straight days of losses. And the rollercoaster continues.
Markets at large have been getting battered as infections begin to rapidly rise once more in the US and other major markets.
However, the outlook for the metals market remains largely positive – as it’s expected to be buoyed and fueled by government stimuli to palliate the impact of the economic disruptions caused by the virus outbreak.
Copper holds a special place in said market. Years of low prices made interest in exploration wane – and now it’s primed to become an extremely in-demand commodity with major, immediate demand from the electronics, transportation and construction industries.
With all of this happening, sharp investors know that one of the best ways to leverage the situation is hunting for companies that remain priced in consonance with pre-covid copper valuations, while exploring multi-billion-pound-potential projects.
A particular Canadian company set to benefit immensely from this sizzling moment in the market is the highlight of our feature: Deep South Resources (TSX.V: DSM.V).
Canadian experience exploring foreign potential
Headquartered in Vancouver, BC, Deep South Resources is a development-stage company engaged in the acquisition, exploration, and development of mineral properties. Focused on copper, they seek to aqcuire other copper or gold projects.
Its flagship Haib Project, in southern Namibia, is 100%-owned. The company boasts impressive corporate backing, with Teck Resources (NYSE: TECK) as a 21% shareholder.
DSM is directed by a talented project management team based both in Namibia and South Africa, with a track record of developing and operating tier-one projects in the region.
Its tenured leadership is helmed by President and CEO Pierre Léveillé – who has been operating in Africa and Namibia since the mid-90s, and now has over 30 years in the international financial sector with 20 of them being mining-oriented.
Making the grade
A strong team is important. But let’s shift our focus to operations. Specifically, DSM’s crown jewel: The Haib Project.
Deep South’s massive Haib Project spans over 370 km². Its excellent location makes it a logistical gem, being near a highway, water and power grids.
In it, DSM has identified an indicated resource of an astounding 3.1 billion lbs of copper, and an inferred resource of 2.2 billion lbs. with a significant potential to increase the resource and average grade of the deposit.
In the center of the deposit, Haib hosts a 140 million tonne high-grade zone, with intercepts as long as 150m logging grades between 0.5% and 1.0%.
Even so, great logistics and a superb resource availability are only surface-level highlights of this under-the-radar stock. The real zest is in its numbers.
DSM’s Preliminary Economic Assessment (PEA) showcases just how strong the company’s potential financials are, and how large the opportunity at hand could be.
The company boasts an after-tax Net Present Value (NPV) of over $950,000,000 and an after-tax Internal rate of return (IRR) of 30% with current copper prices hovering around $3. Its notably low CAPEX sits at just $340 million.
Great numbers, but the picture is incomplete without one more major factor:
DSM’s current market cap is just $12 Million.
Unbelievable.
As we’ve mentioned, Teck Resources already holds 21% of the pie. Another 19% is held by management and Directors, and 17% of the overall outstanding shares are held by Namibian shareholders.
With the stock’s potential to burst as an undervalued gem and it trading at only CA$ 0.10, the only remaining question is:
How much will you hold?
Learn More Now at https://www.deepsouthresources.com/
About DSM
Deep-South Resources Inc. (TSX.V: DSM.V) is a development stage company that engages in the acquisition, exploration, and development of mineral properties. It primarily explores for copper, nickel, cobalt, and gold deposits. The company holds a 100% interest in the Haib project located in the south of Namibia. It also has an option to acquire 75% interest in the Kapili Tepe project that consists of one mining license and two exploration licenses located in the Sivas Province of the North-East Central part of Turkey. The company was formerly known as Jet Gold Corp. and changed its name to Deep-South Resources Inc. in November 2016. Deep-South Resources Inc. was incorporated in 1987 and is headquartered in Vancouver, Canada.