MAC – Mac Copper
Looking at MAC for a medium term hold in the copper sector. The thin market depth makes it impossible to trade short term. Can we hold this for the medium term 3mth – 1yr?
I uncertain about MAC leverage to a rising POC. It’s only got one customer, GIAG. They’ve signed a new offtake agreement with the prices linked to industry indexes. Not sure what this means or which index they’re looking at.
I see that they’ve also hedged about 31% of their production at $3.72/lb. With the current POC at US$4.20/lb MAC is already missing out on millions. I assume the hedge is to placate debt issuers.
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As I’m bullish copper over the next year, will the MAC share price provide a reasonable return over this time?
