GREY:NEVDQ - Post by User
Comment by
Traderfanon Mar 25, 2009 1:06pm
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Post# 15869699
RE: We gotta get through resistance....
RE: We gotta get through resistance....I agree here. As soon as they have sufficient money to be able to survive another 18 months or so I would think about paying up, thats for sure.
My fear is that we haven't really turned around the corner on the copper prices. Right now it looks great but there are some points which we have to acknowledge and that is we have a couple of factors right now which all were favourable for short term copper price strength. We have the seasonal best time for copper prices right now, we had some good dollar weakness in the past couple of weeks, and the stock market went up big time which also always helps overall.
On the other side we still have huge inventories on the LME, we still have not anywhere the demand we had in 2008 for copper, and construction business is still weak as well. So I guess we are due for some copper price weakness in the near future, especially if the stock market retraces and it will. Glad if I'm wrong on this one.
Maybe management thinks the same way and thats why they did announce yesterday that they are looking at different and cheaper methods to get to a mine, not so much depending on the copper prices in general. Read the news from yesterday.