On July 30 BHP, the world’s largest miner, and Lundin Mining Corp, a Canadian firm, announced plans to invest C$4.1bn in Filo Corp. This is no small investment, especially for a business that is yet to generate cash flow. But there’s excitement about Filo’s  exploration of Vicuña, a copper-rich district on Chile’s border with Argentina.

Valuations of firms in copper exploration and mining have rocketed in the past five years. It’s worth recalling that Barrick Gold balked at Freeport-McMoRan’s $10bn valuation when the two discussed a takeover in 2020. Freeport is now capitalised at $60bn (C$83bn)...

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