RE: Monthly fund rotation..strong buying The strong and ongoing institutional accumulation may reflect the probability that Amerigo is a very attractive takeover target.
It certainly has a lot going for it including lots of cash, cash costs that will drop below $1.50 in early 2013 and the real potential to quickly double production to in excess of 100 million lbs of copper.
Copper reserves will never be a question, at least over the next 50 years and copper discoveries continue to fall short of copper demand.
The acquisition of the two other tailings ponds, with copper grades much higher than that currently being processed, is obviously the key to the company's transformation to a mid-tier producer.
Any takeover move will obviously be timed to be ahead of such a development.