Nexvu Capital

Nexvu on Economics, Politics and the Markets

  • Enter your email address to follow this blog and receive notifications of new posts by email.

    Join 1,022 other followers

  • Nexvu on Twitter

  • Previous Posts

  • Advertisements

Equity Update: Lumina Copper Corp. (LCC.TSXV)

Posted by nexvucapital on May 29, 2014

Argentina Mining M&A Poised for Revival

Vancouver, BC / May 27, 2014 / Resource Reports: Two years ago Lithium One struck a $112 million deal with Australia’s Galaxy Resources (GXY-ASX) on its Sal de Vida lithium-potash project in Northern Argentina. The merger was a boon for shareholders at the time and held out the hope for future M&A activity in Argentina.

Argentina’s Planning Minister, Julio de Vido announced last week that the mining sector is expected to attract $3.85 billion dollars in 2014. In the last ten years the sector has brought in over $11 billion dollars, generating 3.2% of Argentina’s GDP.

Since May 23, 2014 Lumina Copper (LCC-TSX.V) has taken center stage in the Argentina mining space, rallying 26% to $7.58 per share, despite there being no significant movement in the spot price of copper or any material news announced by Lumina.

Could this mean that it’s ‘Game On’ in Argentina?

Source: Yahoo/Accesswire

Nexvu Capital

We wanted to take a moment to demonstrate why one of our favourite places to look for opportunity is in the copper porphyry exploration space – simple premise as copper porphyries can be very very big so discovering and developing one can be very very rewarding. It is our humble opinion, that the Junior Copper Exploration and Development sector is basing and the sector will be lead higher by the big dogs on the block. As an example, we highlight Lumina Copper Corp (LCC.TSXV) which owns 100% of the giant Taca Taca  copper/gold/molybdenum porphyry project in Argentina (great asset with a bad address?).

The weekly chart for Lumina demonstrates a couple of things:

  • finding and developing big copper deposits can be rewarding (2010 lows to 2012 highs = +1500% rise)
  • current share price is roughly half of the high
  • in early 2013 the share price broke out of a down-trend and seems to…

View original post 415 more words


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: