the oregon group logo

Investment Insights. Stay Ahead.

Copper rally: why the Small Caps will benefit the most

Since copper’s move above $4/lb in March 2024, the giant copper producer Freeport-McMoran’s (NYSE: FCX) stock jumped 20+%. That’s a material increase for a $60+ billion company. However, the percentage move pales in comparison with its tiny namesake’s (Freeport Resources Inc. TSX:FRI, OTCQB: FEERF, FRA:4XH) share price increase of 200+% since early March 2024. A rising tide lifts all boats, especially the small ones.

Following on our extensive coverage the past year of the looming copper supply deficit — a nearly 10million mt supply gap in the next ten years, according to our latest industry report — we expect copper prices to continue to rise. For those intrepid investors seeking asymmetric risk/reward returns, the best opportunities are in the small cap copper developers and explorers. For illustration purposes, we highlight one such company below.

Freeport Resources Inc.


Sponsored Spotlight: Compelling Risk/Reward Play on the Copper Price

Freeport Resources owns one of the largest, undeveloped copper projects in the world and already has the engineering and feasibility studies in place. It ranks as the largest undeveloped copper project in Asia, the world’s largest copper refiner and consumer. At today’s share price of $0.06, its market cap is just US$11 million, making it arguably the market’s most undervalued copper asset, which is of course why it came to our attention.

https%3A%2F%2Fsubstack post 4bce 4b8a 9250 - The Oregon Group - Investment Insights

Why so undervalued? It’s simple: the company was stuck on its license renewal application. However, its license was renewed by Papua New Guinea (“PNG”) Mining Ministry in March of this year and investors are now taking notice. Furthermore, it recently announced that it has engaged in discussions with strategic investors for completion of final engineering studies and mine development. Freeport is a perfect example of what we search for in this sort of market: an asymmetric risk/reward where the downside from $0.06 per share is negligible compared with the upside of such a large copper resource.

Freeport’s principal asset is its 100% owned, Yandera copper project located in PNG. The project was acquired several years ago from the Sentient Private Equity Fund, a US$2.7 billion specialist mining Private Equity (PE) fund. Sentient, and the project’s prior owner, spent well in excess of USD $200+ million in engineering and feasibility studies but was forced to sell when the Fund had to be liquidated.

Yandera is a major, world class copper deposit. A pre-feasibility study completed by Worley Parsons in 2017 showed total resources of 959 million tonnes of copper equivalent grading 0.37%, including measured and indicated resources of 728 million tonnes, grading 0.39% copper equivalent. According to the conclusions of the Worley Parsons 2017 Pre-Feasibility Study, the Project has an IRR of 23.5% with an expected payback of 5 years and 8 months based on a copper price of $3.35 per pound. With copper already trading above $4.00 and with analyst estimates forecasting much higher prices in the coming years, the project economics will become increasingly more attractive.

https%3A%2F%2Fsubstack post 83d5 4158 85db - The Oregon Group - Investment Insights

Recent advances in new copper catalyst technologies have also opened an entirely new, low-cost processing route for Yandera and other large yet lower grade sulphide copper deposits. These technologies, which allow for the treatment of lower grade sulphide ores as oxides via a standard SX/EW circuit, are currently employed and being tested at various copper projects by Jetti Resources and Rio Tinto. The Company is currently evaluating these technologies to determine if they are applicable to the Yandera project. If they prove to be viable, this could greatly enhance the feasibility of Yandera by significantly reducing the CAPEX and OPEX required to transition the project to production.

View a video of the project below or visit

Subscribe for Investment Insights. Stay Ahead.

Investment market and industry insights delivered to you in real-time.

[mepr-membership-registration-form id="4595"]


The Oregon Group has full editorial control over all content published on this website and the author has not been compensated or remunerated by any person to provide content for The Oregon Group, and all statements and expressions herein are the sole opinion of The Oregon Group. However, from time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

Share this article

about the author

Picture of The Oregon Group

The Oregon Group

The Oregon Group is an investment research team focused on critical minerals, mining, energy and geopolitics.


Subscribe for Investment Insights. Stay Ahead.

Subscribe and get today’s market and industry trends delivered to you in real-time.

[mepr-membership-registration-form id="4595"]


Welcome to The Oregon Group, an investment research team focused on critical minerals, mining, energy and geopolitics.

Our independent capital markets experts are sharing their boardroom expertise and institutional experience to help you profit and hedge your investment exposure during this time of unmissable opportunity.

Subscribe and get today’s market and industry trends delivered to you in real-time.

[mepr-membership-registration-form id="4595"]