A handful of stock catalysts is expected for World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQB) in 2023 given its comprehensive work plans for the Escalones project in Chile and the Zonia project in Arizona, reported Zacks Small-Cap Research analyst Steven Ralston in a Dec. 8 report.
The Canadian copper explorer has a share price today of about CA$0.14, and Zacks' valuation of it is CA$0.73 per share. The gap between these two prices represents a significant potential return for World Copper investors.
Also positive for investors, the company's stock is currently benefitting from several catalysts, Ralston pointed out.
Demand for Copper
At the macroeconomic level, there now is "a positive tailwind for the copper mining industry, driven by the outlook for a looming supply shortage based on the confluence of increased demand from green electrification initiatives and an impending reduction of mine production," Ralston wrote.
Project Advancement
At the corporate level, World Copper's 2023 calendar is spotted with potential stock-moving events. Related to the company's Escalones copper-gold porphyry project, they include the release of drill results from the East Skarn target and from infill drilling at Rio Negro.
"Management has plans to expand the estimated mineral resources at both Escalones and Zonia through drilling programs," Ralston wrote.
Regarding Zonia, the company's copper-oxide project, catalysts include completion of an updated preliminary economic assessment, expected between late Q1/23 and early Q2/23, Ralston noted.
Unlike the existing version, this report, the analyst added, will "consider expanding the resources beyond the 100% privately owned land by including the estimated resources on Bureau of Land Management and Arizona state land."
Additional catalysts from Zonia will be the release of results from two planned drill programs. One is small, shallow exploratory drilling of the northeast target there. The other is 5,000 meters of infill drilling to include the U.S. Bureau of Land Management and state of Arizona lands.
Late in the year, a prefeasibility study of Zonia's Main deposit is anticipated.
"Management has plans to expand the estimated mineral resources at both Escalones and Zonia through drilling programs," Ralston wrote.
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Zacks Small-Cap Research, World Copper Ltd., December 8, 2022
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I, Steven Ralston, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.
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