ARG gonna have a huge 2008Copper off to a great start! Its up $0.11 to $3.17/lb!
The company will gradually ramp-up production from Colihues this year. By mid-2008 its electricity generation unit will be up and will bring down costs from over $0.20/mwH to $0.10/mwH. Hopefully, when LNG shipments starts in 2009, market electricity prices will be back to $0.06/mwH and ARG can just have its generation units on standby. The $9 mm is still money well spent as insurance for electricity price spikes.
ARG should make between $0.50 and $0.70 using a range of factors including Colihues between 15,000 tpd and 30,000 tpd average an copper prices between $3.00/lb. and $3.50/lb.
Stock gonna hit $4.00 for the first time ever this year.