Q: What is your assessment of Marimaca Copper?
5i Research Answer:
MARI is a $354.7M company that is not expected to be profitable for the next few years. It is currently pre-revenue and shares have mostly traded sideways over the past several years. It does not generate positive free cash flow and mostly uses its cash balance to fund operations. It aims to develop a sustainable green-copper mine, and aims to continue drilling operations this year and to capture higher grades. Due to its pre-revenues and stagnant balance sheet, we would consider the name to be a higher risk at this time and would prefer to wait until the company has begun generating sales to enter into a position.