Initial Report Explains Why Deep-South Resources is Extremely Undervalued Copper Play

Deep-South Resources Inc. (CA:DSM – $0.19 & US:JAUGF – $0.15 & GER:DSD – €0.10) holds 100% of the Haib Copper deposit in mining friendly Namibia. Haib is arguably the oldest porphyry deposit in the world and one of the largest in Africa.

It’s also one of the larger undeveloped copper deposits with a total NI 43-101 Compliant Mineral Resource Estimate of 799.1 Mt at a grade of 0.30% copper (Cu).

The Company has recently completed an updated Preliminary Economic Assessment (PEA), which returned an outstanding post-tax NPV of US$1.3bn and a post-tax IRR of 42.1%, with a payback period of 3.4 years using a copper price of US$3.5/lbs.

Deep-South Resources is now in the process of advancing the Haib Copper Project towards a feasibility study with plans to complete a 12,000m infill drill program to expand the already impressive resources even further.

The world is undergoing a once-in-a-lifetime switch to electric vehicles (EVs). EVs are no longer the sole province of Tesla — automakers like Volkswagen, General Motors, and Ford are pouring billions of dollars into EV development, so we can expect huge ongoing investment in this space as these major players fight over the growing consumer market.

As a result, the bull market for copper is now fully underway with prices up 65% from the 2020 lows, reaching their highest level since 2017. This current price strength is not an irrational aberration, rather it is the first leg of a structural bull market in copper.

Despite making significant progress at Haib, Deep-South Resources is significantly undervalued compared to other copper project development companies. Consequently, we initiate coverage of Deep-South Resources with a buy recommendation and a price target of $0.67, which is 252% above today’s stock price.

Download the first quarter 2021 Deep-South Resources report

 

Smallcaps.us Advice: BuyPrice Target: $0.67Latest Company Report (pdf)
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