I had Grok create this nifty chart to illustrate why I added to Surge Copper in the low 60-cent range this week.
I’m not unaware of the CapEx number in the pre-feasibility study that tanked the share price. That said, $4.7-billion is typical for large greenfield porphyries. Berg’s single-phase PFS design maximizes scale, but also leaves room for optimization.
So we’re talking about what the IRR looks like rather than whether Berg even becomes a mine. The CapEx does illustrate the need for strategic partners, a phased approach, streaming/royalties, or government support (which Berg has from the province, the feds and even local first nations). Ideally a major comes in with a sickening premium and makes this all a moot point.
Surge also owns Ootsa and an interesting royalty.
I’ll listen to an argument that I’m better off owning Imperial Metals, but Surge Copper as a deep value trap? I can’t get there.
