Minnesota copper-nickel developer shares off to the races
PolyMet Mining Corp. (TSE:POM) (NYSEMKT:PLM) gained 17% on Tuesday bringing its gains over the last three trading sessions to 43%.
The Toronto-based junior is developing a 100%-owned copper-nickel-precious metals mine and processing plant in Minnesota and the initial boost for the stock came after comments by Edison Investment Research last week predicting huge upside for the counter:
"PolyMet purchased the Erie Plant and associated infrastructure for a fraction of the replacement cost, which positions the project at a low capital and operating cost relative to its peers," Edison said in a research note.
"PolyMet’s valuation has material upside if it expands its capacity or uses its infrastructure to consolidate the Duluth Complex in Minnesota," the equity researcher said.
Polymet's current plan only utilizes about a third of the Erie plant's 100,000 tonnes per day capacity.
By the close Polymet was trading up 17.2% at $1.29 on the Toronto big board, in huge volumes. More than 350,00 shares versus usual daily volume of 75,000 shares had changed hands on Tuesday.
The $354 million company, which is expecting environmental permits by end of next year and completed construction by 2016, is up 40% since the start of year.