Copper is the New Oil. Excelsior can pump it out of the ground.

2021年4月17日

Most copper mines are giant open pits where the valuable copper is surrounded by millions of tons of waste rock. Companies like Freeport McMoRan (FCX) dig it out of the ground, mill it into small particles, coat the particles in Portland cement to allow fluid flow, then spray sulphuric acid on top. Excelsior Mining has a rare oxide copper deposit that is below the water table so it can inject very dilute acid (similar to vinegar) to pump the copper oxide out. Production started in 2020 with the first copper sale in January. The company has a 25 Mlbs/year SXEW plant with permits to increase it to 125 Mlbs/year. As with any new operation, there are always start-up issues. In addition, the company did a private placement in February which included warrants. Some investors kept the warrant and sold the stock, putting downward pressure on the stock. It looks the shares in the private placement have finally found long-term owners. Meanwhile, copper has broken out of a triangle pattern and appears headed for new highs. It may take a while, but Excelsior will catch up with copper.