Bell Copper Corporation (TSXV: BCU) is a Canada-based company that is engaged in the acquisition and exploration of mineral property interests in North America. The company's project portfolio includes the Perseverance project and the Big Sandy project.

Key Highlights:

• Operational Update: Recently, the company has conducted metallurgical testing of chalcocite rock samples in its Big Sandy project. The company used upgraded QEMSCAN technology which is primarily used for detecting metals and rock samples.

• Sequentially improved bottom-line: In Q3FY21, the company reported net profit of CAD 0.40 million, as compared to a net loss of CAD 0.22 million in Q2FY21 benefited from the gain on write off debt amount, CAD 0.58 million in Q3FY21.

• Drilling Updates: Recently, the company informed its drilling updates on Perseverance Project, which is located in northwestern Arizona, USA. This drilling activity is expected to highlight volumes of rock containing more abundant disseminated sulfide minerals that might indicate higher copper mineralization in the coming days.
  

Stock Recommendation:

Copper mines are continuously depleting and not replaced fast enough by new copper discoveries. Increase use of copper due to growing demand in novel electric vehicles, wind turbines, and expanded electrical grids would require new copper discoveries in order to match existing demand.  Hence, discovery of new copper resource would result in improved prospect for the company in the coming days due to elevated demand dynamics. However, on the flip side, on a price to book value basis, the BCU stock is available at 8.4x on TTM basis, higher than the industry (Basic Materials) median of 2.1x. Considering the aforesaid facts, we give a ‘Watch’ stance on the stock of BCU at the last closing price of CAD 0.41 on April 25, 2022.

One-Year Technical Price Chart (as on April 25, 2022). Source: REFINITIV, Analysis by Kalkine Group 

 Technical Analysis Summary

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

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