Giant Mining Corp. (CSE: BFG; OTCBB: BFGFF; FSE: YW5) is poised for significant growth with several key catalysts on the horizon. Read on for more details on these catalysts and what experts say about their investments.
Giant Mining Corp. (CSE: BFG; OTCBB: BFGFF; FSE: YW5) is an established exploration company with a proven track record of copper discovery. The company-owned Majuba Hill Project had historic production of more than 2.8 million pounds of copper with an average grade of 4% from historic underground mines operated between 1911 and the late 1950s.
Located in the mining-friendly state of Nevada, Giant Mining Corp. occupies a strategic location close to essential infrastructure such as highways, railways, water and electricity. As the company moves from exploration to resource definition, it is poised to leverage its existing assets and generate significant value for stakeholders. Recent developments and planned activities signal promising potential, experts say.
The copper sector as a whole
The copper sector is undergoing a significant shift as global demand for the essential metal continues to rise, forcing even traditionally cautious analysts to adjust their forecasts to reflect rising prices.
“Even analysts who say they are not copper bulls are being forced to change their forecasts in favor of higher prices,” reported Stock head April 9.
Global consumption of refined copper has increased significantly, from 10 million tonnes in the late 1980s to 26.5 million tonnes in 2023. Asia, particularly China, is the largest consumer, accounting for 70%. of global consumption.
“In 2022, China was the largest consumer of refined copper, with usage of 14.7 million tonnes…Copper mine production totaled 22.4 million tonnes in 2023, Chile, Peru and the Democratic Republic of Congo (DRC) being the largest producers. Production of refined copper, including secondary or scrap, totaled 26.5 million tonnes in 2023, with China being the largest producer. said Reuters on May 20.
“Giant Mining continues to be considered a strong buy, especially on minor declines,” wrote technical analyst Clive Maund.
In the future, the demand for copper is expected to increase. According to a Credendo report from May 27“Demand for copper could double by 2035. The main drivers are the recovery in demand from Chinese manufacturers, the rebound of the global economy and the boom in investments in green technologies (e.g. renewable energy and electric vehicles) and in AI technologies.”
The electrical and electronics segment is a significant driver of copper demand. Copper's excellent conductive properties make it indispensable in a variety of applications, including wires, cables, transformers, motors and residential electrical circuits. Increased production of electric vehicles has further boosted the demand for copper as components such as foils, stators, rotors and motors in these vehicles are copper-intensive.
According to information from Mordor, global output of the electronics and IT industries increased by 11% year-on-year in 2021, reaching US$3,415.9 billion. This growth is expected to boost demand for copper in the electronics sector.
In the United States, the Consumer Technology Association (CTA) projects that the consumer technology sector will reach $505 billion in retail revenue by the end of the year, with sales increasing by 2.8 % compared to growth in 2021. This increase in demand for new technology products is expected to expand the copper market during the forecast period, reinforcing the essential role of this metal in the global economy.
Some giant catalysts
Streetwise recently met with Giant Mining Corp., and they outlined their plans for significant growth, with several key catalysts on the horizon. Over the next six to 12 months, the company said it will conduct a comprehensive reverse circulation (RC) drilling and coring program aimed at defining a significant deposit estimated at between 50 and 100 million tonnes, with a grade of 0.15% to 0.30% copper. This initiative focuses on delineating and expanding known resources rather than exploring new areas, thereby providing a clearer picture of the potential yield of existing deposits. With its strategic location and access to critical infrastructure, the Company's Nevada ownership ensures operational efficiencies and reduces logistical challenges, thereby improving project viability.
Ron Struthers of Struthers Resource Stock Report echoed this positive outlook on May 30, 2024, noting: “Giant Mining Corp. is well funded with just over US$4.4 million raised in recent funding rounds. The drilling phase is coming soon and based on past results we know with confidence that this round of drilling will deliver excellent numbers.
In addition to the drilling program, Giant Mining Corp. recently received approval from the Nevada Department of Conservation and Natural Resources for Reclamation Cost Estimation (RCE).
The company said this approval is a critical step in advancing the Majuba Hill porphyry copper deposit project and underscores its commitment to environmental management and compliance with state regulations.
With this approval in place, the Majuba Hill Project is well positioned for continued exploration and development activities, which is likely to attract additional investment and partnerships, thereby accelerating the project timeline and potentially increasing the value of the stock.
The superior infrastructure of the Majuba hill site, including well-maintained roads and reliable power supply, facilitates rapid mobilization and efficient operations, the company noted. Continued improvements and use of this infrastructure will support current and future project phases, ensuring smooth operations throughout 2024. The planned phase of exploration drilling at Majuba Hill, which is expected to begin in the third quarter of 2024, aims to delineate additional resources and expand known zones of mineralization. Successful drilling results can significantly increase resource estimates and improve the overall project valuation, with initial results expected by the fourth quarter of 2024.
Additionally, the company said it is in advanced discussions with several major mining companies, highlighting growing interest from industry giants in its assets. Partnerships or strategic investments are planned, Giant Mining Corp. said, providing the capital and expertise needed to accelerate the development of its projects.
What the experts say
Technical analyst Clive Maund expressed great confidence in Giant Mining Corp.in its update of May 23, 2024Maund highlighted the company's impressive performance, noting: “Giant Mining Corp. has worked great for us so far. Just after being recommended on the site, it broke away from the small cup and handle base that we had correctly identified and progressed so that by Friday's close it had doubled.
He highlighted the bullish signals by saying: “This advance was supported by good volume, which pushed its volume indicators sharply higher and took the price above an important resistance level and beyond. above its 50-day moving average, which is now rising, all. which is optimistic.”
Maund also highlighted the company's strong financial backing, mentioning, “The substantial financing that was announced as closed on the first of the month has been oversubscribed, and all future financings are expected to be as well.” »
Reflecting on the overall market conditions, he added: “With the strong bull market in copper, Giant Mining is expected to continue to advance, and as there is no significant resistance until the 2.75 area $ CA is reached, it continues to be noted. a strong buy, especially on minor dips.
Ron Struthers of Struthers Resource Stock Report echoed this positive outlook on May 30, 2024, noting: “Giant Mining Corp. is well funded with just over US$4.4 million raised in recent funding rounds. The drilling phase is coming soon and based on past results we know with confidence that this round of drilling will deliver excellent numbers.
Ownership and structure of shares
According to Giant Mining Corp., about 18.6% of its shares are owned by insiders. The remaining shares are held by retail investors.
Giant Mining Corp. has a market capitalization of approximately 18.7 million Canadian dollars.
The company's shares are traded on the Canadian Securities Exchange (CSE) under the symbol BFG, on Deutsche Boerse AG (DB) under the symbol YW5 and on the OTC Pink Sheets in the United States under the symbol BFGF.F , with these quotes. active since December 2017.
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Important Disclosures:
- Giant Mining Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of between US$4,000 and US$5,000. Additionally, Giant Mining Corp. maintains a consulting relationship with an affiliate of Streetwise Reports and pays a monthly consulting fee of between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) own securities of Giant Mining Corp.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and does not constitute a solicitation for any investment. Streetwise Reports does not provide general or specific investment advice and the information contained in Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult their personal financial advisor and conduct their own comprehensive investment research. By opening this page, each reader agrees to Streetwise Reports' terms of use and full disclaimer. Streetwise Reports does not endorse or recommend the activities, products, services or securities of any company.
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