Clive Maund, a seasoned technical analyst, believes that Interra Copper Corp. (IMIMF) is currently significantly undervalued and presents a compelling investment opportunity. The company boasts two promising copper-gold projects in British Columbia, Canada, with its flagship Thane Project located in the prolific Quesnel Terrane. This project holds significant copper-gold potential, with a large property spanning over 20,000 hectares. Interra is fully funded for upcoming drilling and exploration programs scheduled for later this year and into 2025, following successful financing rounds.
Interra’s strong capital structure further enhances its attractiveness. With only 29.5 million shares outstanding, and a third of these (under 10 million) in the public float, the company has a relatively tight share structure. This tight float suggests that even a small amount of buying pressure can drive the price up significantly.
Examining the charts reveals a compelling story. Despite experiencing a sharp decline from its peak in 2020, Interra’s stock has been steadily consolidating in recent months. This consolidation is characterized by increased upside volume, a strong accumulation line, and the formation of a base pattern, suggesting a potential reversal to the upside. This bullish pattern is further supported by the recent rise in the copper price, which is a key factor influencing the valuation of copper stocks.
The confluence of these factors – a favorable market environment for copper, Interra’s strong fundamentals, and the technical indicators pointing to a potential turnaround – suggests that Interra Copper presents a unique risk-reward profile. Maund believes the upside potential is considerable, with minimal downside risk. He rates Interra Copper as an “Immediate Strong Buy” and recommends investors consider going overweight on this stock.
