Topic: How To Invest

Pat: Can you give me your recommendation on Candente Copper? Thanks.

Article Excerpt

Candente Copper, $0.32, symbol DNT on Toronto (Shares outstanding: 121.9 million; Market cap: $39.0 million; www.candentecopper.com), is developing the Canariaco Norte copper/gold/silver project in northern Peru. The deposit holds as much as 8.9 billion pounds of copper, 2 million ounces of gold and 53 million ounces of silver. Candente handed out shares of Cobriza Metals (Toronto symbol CZA) to its shareholders in October 2011. Cobriza holds all of Candente’s properties in Peru except for Canariaco Norte. The company holds cash of $14.4 million U.S. That’s enough to complete its feasibility study on the financial viability of a mine. Candente expects to complete this study in mid-2013. If it decides to go ahead, it will need to find a major partner because it will cost over $1.6 billion to develop a mine at the site. Operating in Peru carries significant political risk. President Ollanta Humala, who came to power in June 2011, was a left-wing candidate who promised higher taxes on, and greater control…