Potluk and myself have been sparring partners on this board for a long time, but i agree to it in the end it has come good. The market conditions are not the best but this is a cyclical market and demand for raw materials will come again as countries grow and people demand goods. What needs to happen now is a JV or takeover, looking at the expected earnings from Los Catalos, I would be surpised if they do not get anything more than £1/200m alone, adding in capital expenditure the acquiring company gets rights to minerals discovered, and if you factor in the rest of the copper as this is focussed on maximum return with quickest and cheapest route to getting it out of the ground, it will be even more. Now with the rest of the portfolio, if the company do not sell it then can try and replicate it what they have done with this resource and will be well funded (I expect a sizeable amount to be returned back to shareholders) So lets see what happens, any company who acquires it or undertake a JV will start mining at a time when the value of copper rises.
RE: I expect this ...
Personally, I think that this will now only rise on a JV or takeover. I still believe one of those will happen, most likely a takeover for various reasons. Just a ase of being patient, although my gut says it may be close, either that or it is the food i ate yesterday. Regardless this sp is out of kilter with asset value, so at this price risk very low, only patience required.
I expect this ...
... will start to rise in anticipation of good news on two fronts, maybe three ;)
Looks like no trades on this all day , been quite all round today though!
What's happening today? Cannot see any movement on this since yesterday afternoon!
... that the test drill targets will show a positive increase in the size of the field. Maybe lead to another resource upgrade and potential for expansion. Presentation is very encouraging.
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