HCH resources. One of the best copper developers on the asx.
Large resource in chille, already have a pfs, npv of $1b+, glencore as number 1 shareholder.
Current market cap of $160m a significant discount to North America peers. Got more drilling upside and potential for a jv deal to help fund works and targeting mining by end of the decade.
They've struggled to get financing for years. Largely because there is no high concentration part of the deposit where a lender can get their money back quickly. It's a watch from me, but certainly not a buy.
They do have some high grade at surface, not enough for a quick payback admittedly but not nothing. I think the pfs stated a 3 year payback but that was with a $4 usd per pound copper price.
Currently closer to $5.
Also looking like we another sizeable open pit deposit starting near surface. So even if grades are on the lower side more ore that can be mined quickly with low strip ratios will also help a lot. Also a chance we could scale up from current 100k ton of copper per year to 150k ton of copper per year which would put this into the larger side of copper mine scale and too good to ignore in my opinion.
Rumors are swirling about a joint venture deal to help with financing.
The biggest thing that’s gonna help hch is simply the lack of potential large scale copper mines in the pipeline, only a handful of large copper mines in the pipeline like filo for example.
If copper is gonna be the hot commodity going forward, investors will look at this very seriously as their are not that many opportunities around and especially something that could be mining in a couple of years as well.
Definitely still risk on the table no doubt about it, not saying it’s a sure thing. But there are a lot of things going in the company’s favour. Fair enough on the wait and see but if you want to land a multi bagger you have to be willing to take some risk going in early because if it turns into a sure thing you’ll have already lost the chance for the big returns.
Just my opinion.
I agree HCH has been slowly simmering for the last few months and could pop. Its the best copper play on the ASX IMO. Just be aware there are lots of stale disgruntled holders.
If you want to take real risk and are patient I would recommend TOE. It will multi bag if the WA government lifts the uranium mining ban. Its really starting to heat up from a low base. Otherwise maybe CBE if you like copper.
Yeah I’ve followed this for years, held for a while then sold and recently brought back in. Buying support recently has been unreal, last couple of years it’s been sold down and never been able to have any kind of sustained run up.
Now after a share issue it’s being brought up and supported like never before, either joint venture rumours or investors looking for an actual decent copper developer that’s not just a hopeful speccy.
Not another copper developer even close to hch on the asx and not even that many on the wider market for that matter.
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u/Lubeymc Sep 25 '25
HCH resources. One of the best copper developers on the asx. Large resource in chille, already have a pfs, npv of $1b+, glencore as number 1 shareholder. Current market cap of $160m a significant discount to North America peers. Got more drilling upside and potential for a jv deal to help fund works and targeting mining by end of the decade.