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Copper Mining Co. Trading at a Discount
Research Report

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The Quick Take

  • Fundamental Research initiated coverage on World Copper with a Buy rating and a CA$2.02 per share fair value price, reported Sid Rajeev in a Jan. 21 research note.
  • World Copper owns two projects in Chile, Escalones and Cristal, and is in the process of acquiring a third, Zonia in Arizona.
  • A preliminary economic assessment on Escalones is expected in February 2022.
  • World Copper is well-positioned financially with $3 million ($3M) in cash and $19M in warrants and options.
  • Two Q1/22 stock catalysts are release of the Escalones PEA  and closing of the Zonia transaction.
  • World Copper's shares are currently undervalued.
  • Copper prices should remain stable in H1/22 due to low global supply of the metal along with inflation and worldwide supply chain disruptions.

World Copper Ltd.'s (WCU:TSX.V; WCUFF:OTCQB) shares are trading at a discount, at 17% of the after-tax net present value discounted at 8% of Zonia. The company is not receiving any value for Escalones, highlighted Fundamental Research Corp. analyst Sid Rajeev.

He described the exploration work the company intends to carry out this year at all three of its properties.

At Escalones, Rajeev noted, the company plans to drill at Mancha Amarilla and at already identified nearby targets, aiming to expand the existing resource of 3,450,000,000 pounds of 0.37% copper.

Regarding the Escalones preliminary economic assessment (PEA) expected next month, Rajeev wrote, "We are expecting attractive economics as the project has relatively low capex/opex."

At Cristal, plans call for a $1–1.5 million maiden drill program consisting of four to six holes, Rajeev indicated.

In terms of Zonia, World Copper intends to conduct definition drilling of the existing resource and drill testing of the northeast anomaly, wrote Rajeev. An updated PEA is expected for Zonia this year. Historically at Zonia, about 600 holes had been drilled and production had taken place.



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Disclosures for Fundamental Research Corp., World Copper Ltd., Jan. 21, 2022

The opinions expressed in this report are the true opinions of the analyst about this company and industry.

Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by WCU to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, WCU has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated.

Distribution procedure: Our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The distribution of FRC’s ratings are as follows: BUY (69%), HOLD (5%), SELL / SUSPEND (26%). To subscribe for real-time access to research, visit for subscription options. This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements.

Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward-looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter.

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