Source: Streetwise Reports 10/02/2024

Interra Copper Corp. (OTC:IMIMF) announced it has started its Phase One drilling program at its RIP Copper Project in the Stikine region of British Columbia.

This first-phase drill program of about 2,000 meters will be run out of the Huckleberry mine site camp about 88 kilometers from Houston, British Columbia, the company said. The first drill hole will target the northernmost center of two induced polarization (IP) anomalies defined by recent geophysical surveys, airborne magnetics, and 3D IP, the company said.

"The geophysical surveys suggest potential for two porphyry Cu-Mo mineralized centers" Interra said in a release. "The northernmost center coincides with outcropping porphyry Cu-Mo mineralization and comprises a coincident magnetic/resistivity high, surrounded by a large 'doughnut' shaped chargeability high (>35 mV/V) with a diameter of approximately 1 kilometer."

According to the company, the second potential porphyry Cu-Mo center is about 1.1 kilometers to the south, comprising a similar magnetic high surrounded by a "doughnut" shaped chargeability high (>35 mV/V).

"This southern potential porphyry center is entirely covered by overburden with a diameter of approximately 850 meters" the company said.

Analyst: Huge Upside Potential

Interra's stock is "extremely undervalued on both fundamental and technical grounds" and is "rated an Immediate Strong Buy" according to Technical Analyst Clive Maund.*

"We have a rare and unusual situation where there is huge upside potential, especially in percentage terms . . . The risk/reward ratio is massively skewed in favor of buyers of the stock here" Maund wrote on August 13.

Maund noted that "when we consider the now favorable outlook both for the company following successful financings and the prices of the metals it is looking to produce, primarily copper and gold, it quickly becomes clear that there is a whole lot of upside for the stock."

Interra entered into an option agreement with ArcWest Exploration Inc. to acquire an 80% interest the RIP Cu-Mo project in 2023. The company can earn the first tier of its interest in the project by completing staged exploration work totaling CA$2 million, direct payment of CA$100,000, and annual share payments over four years until the end of 2027.

"Interra is currently fully funded for, and anticipates it will likely exceed, its 2024 and 2025 obligations for the earn-in of CA$300,000 and CA$500,000 in expenditures, respectively" Interra noted.

Experts Agree on Copper's Outlook

Copper is vital for the energy transition in the world's economy. It's the best natural conductor of electricity outside of silver and it's needed for everything from batteries to solar panels. Electric vehicles contain as much as 175 pounds of copper. Power-hungry artificial intelligence (AI) is also expected to put a squeeze on electricity demand.

The "battle cry of the energy transition is 'Electrify everything,'" Vince Beiser wrote for WIRED. That translates into a lot of copper, which "we need it to massively expand and upgrade the countless miles of power cables that undergird the energy grid in practically every country" the author wrote. "In the United States, the capacity of the electric grid will have to grow as much as threefold to meet the expected demand."

The metal traded at US$4.72 per pound on Monday, up 8.93% from last week and 21.08% since the beginning of the year, USA Today reported. It reached a 52-week high of $5.18 on May 20, 2024.

According to Credendo, demand for copper could double by 2035. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles in the long term, analysts have said.

An informal poll of attendees at a London Metal Exchange seminar on Monday showed that 46% of attendees said copper was the base metal that is likely to have the most upside, slightly down from last year's 53%, Reuters reported.

Ownership and Share Structure

Interra has 42.6 million shares outstanding, according to the company. It said about 25% of the company is owned by management, directors, insiders, and other closely affiliated parties, leaving about 75% to retail.

Top shareholders, according to Reuters, include Raymond Christopher Buncic with 1.86%, Richard Mark Gittleman with 1.69%, Director Jason A. Nickel with 1.48%, Director Mike Ciricillo with 1.27%, and Director Mark Daniel Cruse with 0.59%.

The company has a market cap of CA$4.48 million and trades in a 52-week range of CA$0.32 and CA$0.08.

Important Disclosures:

Clivemaund Disclosures