Last week I posed the question about a 1:1 rights issue at 2p. It would probably get away at 3p today raising 50% more than a week ago. Am I right to be suspicious of today's rise?
In the 18 Jan RNS it stated that the outstanding hedge was 440 tonnes at US$3.49. Now we hear that it's 110 tonnes and that will be cleared very shortly. That is good, especially with a spot of around US$4.47
I just checked the futures market with CME and the Cu price is flat so whilst logic might point to higher demand and price, the futures market is not reflecting that at the moment
Just looked at the Cu Futures market via CME and saw that for the coming year the price is just about flat. So when considering the next hedge, a rising price is not clear cut. Anyhow, any new hedge will almost certainly be well ahead of the previous one. Anyone fancy a contango?
We need to remember that there are some "people" who are happy sellers at anything over 18p. As others have said, they can only sell once. It may take a while for the market to clear these "investors"