RE: RE: RE: Copper surged 8 cents this morningVery good posts Stockbagger. I agree with you 100%. There are another few angles: many analysts and mining CEO's have stated lately that they expect the Copper market to be in a deficit supply scenario. It also is commonly known that Moly and Copper are usually supplied from the same ore body so it is pretty safe to assume that Moly will eventually also be in a deficit supply scenario, particularly with a booming global steel production which is on track for another record year in 2011. Amerigo produces both Cu and Mo and both are unhedged, being able to take full advantage of higher prices going forward.
The other angle is the massive US $ cash position in China. For the past few years we have seen Chinese companies collecting mining assets left right and center, spending those US $ and turning the Dollar into a commodity hedge. They have acquired iron ore, copper, moly, oil & gas and the list goes on...
With additional pressure to be expected on the valuation of the US $ we can expect commodity prices to go higher across the board and we can expect China to speed thigs up with regard to the acquisition process of commodity plays.
This all bodes well for Amerigo, at least that's how I see it.
Good Luck Always