RE: Amerigo expansion news soon?....CalifDreamingCaifDreaming said:
"I wouldn't touch a copper play right now. The tops have been reached. It's just a matter of how much they slide. Zinc, Nickel and Lead have far better fundies".....
I agree in the general market sense, particularly in Q1 and Q2,2007 and even potential production increase, which most of us anticipate from Amerigo, should not be sufficient to significntly support stock price.
In the case of Amerigo the special gain on "Chariot Disposal" will have contributed approx. $8.5 million which at a glance can make Q4,2006 net earnings look good(can be in the order of $0.12 per share IMHO), but I expect that it will be very difficult for revenues from any increased production volumes at Amerigo during the first half of 2007 to overcome both (a)the revenue adjustments in Q1 and Q2,2007 and (b)the lower basic commodity price recently indicated. Certainly royalties will ease the pain a little, but not anything close to enough during the coming 6 months.....big question is where will copper prices settle as a year 2007 trading avarage?
Peace,
Good Decision-making to All,
ElJ