Take physic, pomp

Nevada Copper (NCU.to) reports its quarter (from IKN417)

A little snippet from yesterday’s weekly.


Nevada Copper (NCU.to): And on the subject of pig-awful
balance sheets, NCU filed its 1q17 financials after the bell on Friday evening.
Here’s the balance sheet, with scribbles:
You don’t need very many this time
either, just a circle around that long-term debt pile is enough. If it had a
viable project it might be a different story, then again if it were viable it
wouldn’t be at project stage today. Instead, NCU is merely a vehicle used to
drain cash slowly from Pala to Red Kite.

As for that “Fantasy Island”
comment, it’s useful to remember that despite using a copper price of U$3.00/lb
for U/G and U$3.15/lb for open pit in its feasibility study (and those only get
you yo a mediocre 15.6% IRR) and despite copper not being at those price for
many years, NCU hasn’t bothered to write down or impair its fixed asset value
by a single red cent. That U$235m asset price may as well be U$235 Billion as
neither number bears any relation to reality. At least CMMC has some cash flow.
“Optionality on copper” stops being “Optionality on copper” when the project
never has a chance of being built.

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