Canterbury Resources Share Price Up on Wamum Tenement (ASX:CBY)
At time of writing, the share price of Canterbury Resources Ltd [ASX:CBY] is up 35% trading at 13.5 cents.
The CBY share price was in the doldrums prior to today’s announcement, locked in a sideways move:
We take a quick look at what got the CBY share price moving higher today, as well as the gold and copper price charts.
PNG copper gold project at Wamum
CBY was granted the Wamum tenement today, which is ~20km northwest of the major Wafi-Golpu Project.
The Wafi-Golpu Project is 50% owned by ASX-listed gold behemoth Newcrest.
Here’s a key bit from the announcement:
‘The tenement covers two significant Cu-Au deposits at Idzan Creek and Wamum Creek, which are estimated to contain a combined 3.16Moz Au and 762kt Cu.’
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That’s a significant resource if CBY can get it off the ground.
The proximity to Newcrest’s operation is a bonus.
So, how are the gold and copper prices tracking?
Gold chart copper chart and the copper gold chart may hold clues to CBY share price outlook
First, the gold chart in a five-year window:
Gold bugs could be a little worried by the slump that’s playing out in the gold price chart.
Or gearing up for a buying opportunity.
Also relevant to CBY’s prospects is the copper price chart:
It’s tapering off a bit, but I’m still bullish on both copper and gold.
One of our algorithmic products checks up on global economic health by looking at the copper-gold ratio which you can see below:
It’s a fascinating indicator, but I think as a barometer of the bull/bear dynamic it may lose its relevance.
I think you could see both fear and greed at the same time in the market — such is the unprecedented level of cheap money out there.
Which makes CBY’s combination of resources so interesting.
Cheap money and infrastructure fuels copper, while at the same time spurring gold as a hedge against inflation.
This dual-sided appeal of CBY’s resource at Wamum makes it an intriguing project.
Two years from now, I see a both gold and copper (along with pretty much any other commodity) at lofty heights due to inflationary pressures.
For The Daily Reckoning Australia