General Base Metals
Kutcho Copper (TSX-V: KC)(OTC: KCCFF) CEO Vince Sorace on Buying a Billion Dollar Copper Deposit for $50 Million Dollars
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Kutcho Copper, Mr. Vince Sorace. Vince, how are you this morning?
Vince Sorace: Doing great, Gerardo. How are you?
Gerardo Del Real: I am well. I'm a bit perplexed, if I'm being 100% honest. I don't say it often, but the share price for Kutcho Copper is currently at 36 cents. You have a 52 week high of a $1.14. I would venture to say that you're a better company now, a more valuable company, than you were when the stock was trading at that $1.14 But yet here we are with a $40 million market cap on a project that using today's copper price has economics that could justify a billion dollar valuation. I think the disconnect provides a heck of a speculation for anyone that could hold it for a couple of quarters, and if anyone is interested in a long term copper zinc play, there are few speculations in the market right now that present better value than Kutcho Copper.
So with that being said, I reached out to you this morning, Vince, because you just received over $2.8 million from warrant exercises and I'm going to go ahead and speculate that the reason your share price is gone from a $1.14 to 36 cents is people have IRS bills, people get divorced, people have situations where they need to come up with money. I'm guessing that some of the people that exercise those warrants went ahead and pressed the sell button right away. For my audience, I think that presents a heck of an opportunity. Care to share?
Vince Sorace: Well, that's exactly right, Gerardo. I mean, I know firsthand ... Listen, we've got a lot of very, very good investors in this deal, but in the current environment, which I think we're all seeing is a little bit tough out there, it doesn't take much and there are definitely ... this has been going on kind of slowly for a couple of months, but the warrants just all expired a few days ago and there's some overhang right now. I don't think it's a lot and I think we're seeing the worst of it now and I think it's going to clean up. I'm getting a lot of calls right now, people just finally recognizing that this is just way too cheap. To put it in context, I think we're trading at less than a .1 P/NAV for, I would say, one of the best copper development stage stories out there right now with tremendous upside to it.
We've been a little quiet on the news flow in the last couple of months, but we've been working hard behind the scenes. There's some updates coming, a number of things that we've been working on that are just making the story even better than it is. So your audience can keep a lookout for that. We'll be updating everyone in the coming weeks, but yeah, we're working hard, there's more coming and look forward to it, to sharing it.
Gerardo Del Real: I'll just leave it there. I want to make this interview as short and sweet as possible. I mentioned that you could justify a billion dollar valuation on the project. The exploration upside is exceptional. The overhang I think is days away from being cleaned up and I think everyone out there could probably expect a pretty rapid re-rating of the stock. So yeah, we can timestamp this and maybe we have a conversation in a month or two when some of that other news starts to hit the market and see where you're trading then, Vince. Thank you so much for coming on. Anything else you'd like to add to that?
Vince Sorace: Nope, that's great, Gerardo. We will definitely catch up probably within the next month.
Gerardo Del Real: Looking forward to it. Thanks, Vince.
Vince Sorace: Thanks, Gerardo.