Would love your analysis on this one on the viability of this taking place and is it worth a small bet?
It is an interesting, but small and risky, company. It has a bit of cash, but no revenue, losses and negative cash flow. Insiders own 1% directly but three entities collectively own 60%. Two analysts follow it. The Copperwood project is envisioned to produce about 30,000 tons of copper annually with an initial mine life of 11 years. It has a high sensitivity to copper price, with its NPV increasing significantly as prices rise, indicating strong economic leverage. Copperwood is fully permitted under Michigan's stringent mining and environmental regulations, including Wetlands and Streams Permits, with remaining mitigation work on site underway as part of environmental stewardship commitments.
The company has completed much of the required environmental mitigation work, including wetland restoration and stream habitat enhancement projects, facilitating strong relationships with local and state authorities.
Highland Copper benefits from strong government support, including a proposed $50 million state grant and federal legislative backing, and has secured 22 formal local government resolutions in support of the project. We would consider it buyable for small cap high risk investors seeking exposure to the sector. We do not want to downplay the risk, however.