CUUI think what everyone here is failing to grasp is the amounts of shares owned by management/insiders and how this will affect the decision to sell.
I personally have never been in a resource company that led its sector in pounds in the ground behind CUM and NDM of course and also had a unique share structure that insiders + management controlled 70%.
Essentially what this means is that the weak hands can walk away from this play at any price they choose to but there will be no Vote of Shareholders when you've got a majority holding the shares that want to realize the full potential for it.
If Ernesto had the balls to step in and save the company in 08' when things were looking like there wasn't a grain of hope, you don't think he has the balls to ask for a counter-offer or walk away if he's lowballed for $2.50 for CUU?
Personally I don't think we get lowballed especially by Teck and I don't see them walking away from a $100 B resource for under $270 million.
If this resource comes in at 70-100% increase we're going to be looking at the largest copper deposit in North America that's set to go into production before 2014 as we'll have passed CUM's reserves. NDM isn't set to produce until 2019 earliest so they aren't truly benefiting from producing copper at these high prices since construction is still almost a decade away.
I think what people here have to ask themselves is how many times has Vette been right so far?
Personally everytime I'm happy with a price for CUU and decide to take some profits I regret it latest by the end of the day as regardless how small the increments I let my shares go in I still end up losing a dime at least from where it gaps up the next day. I thought $1.25 was a good price for CUU and was forced to buy back at $1.15, I thought $1.80 was a good price and had to buy back at $1.45. Now do I take the chance and sell at $2? To buy back after halt when it's based at $2.50 based on 26+ Billion pounds Cu eq.
I think what people are missing is yes this stock is certainly running and yes most stocks this would be a great time to take profits, technically. I have a hard time treating the #1 Stock on the Venture based simply on technicals especially when we've still yet to price the three most exciting things into the SP:
1) NTL Fed Announcement
2) Feasability
3) Back in for Expenditures - minimum $240 million in MC added to SP or
.67 cents a share.
Personally at 30, 60 and 90 cents I never would have believed $4 but as we creep up valuations like that are getting more and more realistic and with the new resource and rhenium (close to $1 billion in value - copper/moly byproduct) even 25% of our rhenium comes out to another
.66 cents a share. That's just a byproduct of our deposit.
NPV @ 2.7 B in 2007
- did not include NTL and capex added
- did not include high grade starter pit - or any high grade for that matter
- did include 220 metre depths for Resource Estimate, not the current 680 metres.
- did not inlude faster payback of 150,000 tpd upgrade for 90,000 tpd
If you can't see the immense difference this is going to have on an already incredible Feasability Study done in 2007 with gold, siver and copper at half the prices then be my guest and let go of shares but I don't think the investment banks CUU is meeting with at the end of the month will have any trouble realizing the potential of Shcaft Creek nor crunching some quick conservative numbers and realizing this thing is going to $3.75 a share minimum.