Billionaire John Paulson’s 10 Stocks with Huge Upside Potential

4. Trilogy Metals Inc. (NYSEAMERICAN:TMQ)

Paulson & Co.’s Stake: $16.62 million

Number of Hedge Fund Holders: 9

Average Upside Potential as of May 2: 63.04%

Trilogy Metals Inc. (NYSEAMERICAN:TMQ) explores and develops mineral properties in the US. It primarily explores copper, cobalt, lead, zinc, gold, and silver properties. It principally holds interests in the Upper Kobuk mineral projects that include the Arctic and Bornite.

The Bornite copper project is particularly rewarding for Trilogy Metals. The recently announced Preliminary Economic Assessment (PEA) shows the potential for an underground mining operation with a 17-year mine life, which would be capable of producing 1.9 billion pounds of copper. This PEA indicates a pre-tax net present value (NPV) at an 8% discount rate of $552 million and an internal rate of return (IRR) of 23.6%.

The development plan for Bornite anticipates a 6,000 tonne-per-day operation, using the infrastructure from the Arctic Project once that deposit is depleted, potentially extending the Upper Kobuk Mineral Projects’ activity to over 30 years. Trilogy Metals Inc. (NYSEAMERICAN:TMQ) will be using the positive results of the Bornite PEA to guide further project development and decision-making.