Topic: How To Invest

Hi Pat: Could you give an update on Equinox Minerals. Is it a buy?

Article Excerpt

Equinox Minerals, $6.15, symbol EQN on Toronto (Shares outstanding: 707.9 million; Market cap: $4.4 billion; www.equinoxminerals.com) is focused on mining and exploration in Zambia. Equinox first sold shares to the public at $0.71 Cdn. each, and began trading on Toronto in June 2004. The Perth, Australia-based company subsequently listed on the Australian Stock Exchange. Equinox operates its 100%-owned Lumwana copper mine in Zambia, West Africa. Lumwana began production in 2008. Lumwana is one of Africa’s largest copper mines, and is forecast to process over 20 million tonnes of ore per year for 37 years. The mine’s operating costs are now around $1.21 U.S. a pound. Right now, copper trades around $3.97 U.S. a pound. Lumwana’s copper ore includes some high-grade uranium. Equinox has completed a feasibility study for a uranium-treatment facility at the site. The study found that the facility could produce 2 million pounds of uranium a year for six or seven years. However, this project is on hold until the company…