Q. Does the current Copper Fox stock price accurately represent the net asset value of the company?
A. No it does not. Copper Fox is currently trading at a significant discount to the combined NPV’s estimated for the Schaft Creek and Van Dyke projects. The decline in commodity prices over the last five years combined with other market factors has affected the perception of the values established for advanced stage projects. With the onset of a new commodity/investment cycle, the market valuation for copper producing companies have increased significantly over the past year. The implied value in many of the exploration and development companies are normally recognized later in the commodity cycle. Two of Copper Fox’s assets are classified as advanced stage projects and supported by National Instrument 43-101 Technical Reports. The Technical Reports outlined resources in the measured, indicated and inferred categories for the Schaft Creek and Van Dyke projects. At Schaft Creek, a significant portion of the measured and indicated resources were upgraded to proven and probable reserves as a result of a 2013 Feasibility Study.
The Technical Reports on the Schaft Creek and Van Dyke projects confirm that these projects have positive net present value (“NPV”) and internal rate of return (“IRR”) on both a pre-tax and post-tax basis. The Reader is cautioned that the information, assumptions and projections of the 2013 Technical Report on the Schaft Creek project has changed, some significantly over the past five years. The conclusions and economic analysis presented in the 2013 Technical Report may not be achieved.
In addition to the NPV for the Schaft Creek and Van Dyke projects, Copper Fox has two large porphyry copper exploration projects in Arizona and owns 45% of the shares of Carmax Mining Corp., which holds title to the Eaglehead copper project located in northern British Columbia.