Shares in London-listed mining project specialist Cloudbreak Discovery [LSE:CDL] are now up by almost 475% in less than a week, following renewed investor interest in the company, which sources mining projects around the world, especially in Canada.
Stock was trading at just under 10p on the London market Wednesday having been priced at less than 2p just over a week ago.Cloudbreak Discovery listed in June 2021 on the London Stock Exchange. It manages a portfolio of interesting mining projects across a variety of different natural resources areas, including copper, helium and various polymetallic projects in British Columbia. It has over 45,000 hectares of mineral tenures currently staked.
The Armchair Trader has been following Cloudbreak Discovery since it listed. We liked the company because of its ability to provide investors with exposure to several interesting mining projects globally. Back in June we said:
“Cloudbreak Discovery is not your father’s mining company. Nor is it a mining investment trust. It combines the best of both worlds in our view, a company with an experienced mining exploration and corporate finance team in situ that is acquiring undervalued assets across a number of different commodities and jurisdictions.”
Sourcing the right partners remains critical
Cloudbreak’s partner relationships are a critical part of the equation. The company sources development partners from its well-established network of explorers and developers in the mining space and receives cash and equity in the form of milestone payments while its partners advance the projects it has identified. Additionally Cloudbreak retains royalties on assets it generates.
The company is pursuing a low cost, high value creation model that draws on partner balance sheets and technical teams to move the ball forward on the various projects.
Focus recently has been on its partnership with Alianza Minerals Ltd [TSX-V:ANZ], to identify and advance copper projects in the SW USA. Cloudbreak has been leveraging Alianza’s regional expertise to make some early acquisitions of the Klondike and Stateline projects in the Paradox copper basin. They are targeting sediment hosted copper exploration opportunities.
“There is currently a fundamental shift taking hold in the metals and energy sectors which will result in increased consumption of critical metals globally,” said Kyler Hardy, President and CEO of Cloudbreak Discovery. “Cloudbreak’s portfolio and strategy positions us at the vanguard of this shift and enables our shareholders to benefit from the changing dynamics within the metals and mining sectors.”
Not just about Canadian mining
It should be noted that Cloudbreak Discovery is not an exclusively Canadian mining play: it is making progress in Côte d’Ivoire, West Africa, where it is currently generating base and precious metals projects through partnerships with local prospectors. The company will update shareholders on this prospect in due course.
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery
The company said last week that its commodities focus this year will continue to be copper, lithium and precious metals, whilst also considering lead, zinc and industrial minerals, if the company sees opportunities that represent value creation potential to Cloudbreak shareholders. Investors will note that many of these commodities are integral to the decarbonisation of energy sources and have an extremely strong demand outlook for the years ahead.
