WMLLF - Copper Co. a Top Performer for Venture Exchange Picks | Benzinga
Source: Streetwise Reports 06/10/2024
Analysts and investors seem to agree on World Copper Ltd.'s new direction, with its stock hitting highs not seen in more than a year. It topped one firm's list of Top Picks, outperforming its other picks on the TSXV.
As World Copper Ltd. (OTC: WCUFF) switches focus from South America to its Zonia project in Arizona, analysts are agreeing with the decision and investors seem to like it, as well.
Fundamental Research Corp. (FRC) named the stock as the top performer of its picks last week as it went up 196% month-over-month, moving up from fifth place in a similar list in March.
Vancouver-based World Copper is focused on the exploration and development of its coppery porphyry projects in Arizona and Chile.
In a strategic move, the company decided to advance Zonia instead of its Escalones asset in Chile, which is currently at a permitting standstill, reported Taylor Combaluzier, Red Cloud Securities vice president and mining analyst, in a May 23 corporate update note.
"Given the current robust copper market environment, we believe the company's focus on developing its smaller-scale Zonia project is prudent and more feasible for a junior mining company to tackle" Combaluzier wrote.
FRC analysts' weekly "Analysts' Ideas of the Week" message notes its top picks and their performance. It said in April, companies on its Top Picks list were up 12.7% on average vs. 2.8% for the benchmark (the TSX Venture Exchange).
The Catalyst: An 'Underappreciated Critical Mineral'
Copper climbed above US$10,000 a ton in May on predictions of tighter supplies and rising consumption for use in electric vehicles (EVs) and power grids in the transition to green energy. It was US$9,260 per ton, up US$180, on Wednesday.
"Prices of copper have risen 17% this year on fears of shortages, with aging mines forecast to struggle to keep pace with demand" Mining.com reported.
On June 2, Technical Analyst Clive Maund shared the above chart and noted that World Copper had been brought to his attention two weeks earlier, but "it had gotten too overbought to chase."
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