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Due Diligence by Doc Jones, Resource Investor, Hunting for Exceptional returns.Author: Doc Jones the Resource Investor
Im a PRIVATE INVESTOR, enjoying early retirement after a long, successful, and fulfilling career as an investment professional with a focus on the resource sector (including oil and gas). I employ common sense, fundamental, bottom-up analysis that incorporates not limited to: currency exchange rates, cost of labor, raw materials cost, geology, metallurgy, cost of capital, infrastructure, micro/macro influencing factors, experience of management, capital discipline by management, etc, etc Research, research, research. I run a highly concentrated and focused portfolio. The Math never lies Language: en Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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CCI.CN CNDIF site tour of NB largest High-grade open pit and Caribou Complex 3000t/d mill
Saturday, 29 August, 2026
Excellent trip. Everything is in very good shape for a fully funded restart of Caribou being feed by the high grade Murray Brook open pit. CEO Simon Quick adds colour to what’s coming as we ramp up over the next 18 months toward production.Production in 2028, fully financed. Offtake sold by Ocean Partners, deep water port nearby, govt support, local workforce, power and water. At current spot it’ll do approximately $150-$160 million CAD in Ebitda on $280 million CAD in Rev, 57% Ebitda margin, mine will payout in 3-4 months.On macro we have forecasted Cu, Ag deficits into 2035 , zinc moving into a small deficit 2027-28Annual Production profile plus +13 years47 million lbs zinc (20% of Canada’s zinc production)8 million lbs copper783,000 ozs silver10 million lbs leadMC is $134 million CADEV (net of OR stream cash $31.5 million +$17 million cash, $1 million in investments and $10 million cash from warrant exercises) = $74.5 million CAD.Trades at 0.4 EV to steady state Ebitda vs peers in production of 4-8X …. That’s the upside in 18-24 months with zero financing risk. Total cash liquidity +$100 million cad including Ocean Partners off-take agreementTotal cap ex from PEA net of $6 million to acquire Caribou which has been paid to put MB into commercial production = $58 million CADLiquidity to cap ex ratio 1.9Xwe could build it twice. Zero dilution risk to achieve commercial production.Then exploration upside, govt funding grants upside, cost cut upside from critical metal govt rebates on 30% of equipment, potential $5 million in cash from sale of non-essentials that came with Caribou, M&A upside of local stranded deposits upside. The risk is execution but this team has proven many times they have the ability to stay in budget and deliver on time. If not under budget and under time. https://canadiancopper.com/Very Good trip!
