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Post by
eebleron Jun 19, 2010 11:20am
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Post# 17204412
Gaoua and Copper
Gaoua and CopperThis is what probably makes the porphyry finds at Gaoua something VTR might want to sell or JV. Its a snippet of text from an article in yesterday's G&M.
Vancouver — Globe and Mail Update Published on Friday, Jun. 18, 2010 6:11PM EDT Last updated on Friday, Jun. 18, 2010 6:13PM EDT
Fears of a sharp slowdown in the global economy have led to a pullback in demand for base metals as projects are put on hold, financing is squeezed and inventories aren’t being replenished.
The continued worries are the European debt crisis, a cooling of China’s economy and a new resources tax in Australia, all of which together are further adding to the market malaise.
Prices of commodities such as copper, zinc, aluminum and nickel have fallen between 20 and 30 per cent in recent weeks, from highs reached two months ago, with fewer calls for a recovery in the near future.
“You’d have to be a hero to try to go out and buy metals right now because of the tone of the market,” said Wayne Attwell, managing director at Casimir Capital LP.
The article goes on further to say that prices of base metals will likely not peak until the 2012-2013 timeframe. Based on what it would likely take to get a big porphyry mining complex up and running, and based on 5 to 7-year worldwide economic cycles, we would probably be heading into a downturn by then so the economics would still be off. Consider the presence of other porphyry finds like Prosperity, Pebble (55 billion lbs of copper in Alaska) and many others that are either equivalent stage or further along than Gaoua and while it could make money, you wonder if there aren't other avenues that could produce a higher and more predictable return.
eebler