RE: I smell another double
You know, this is great, 8x in 22 months.
But don't forget at the end of the day, when all the traders have washed each other to exhaustion, price is just the discount of forward earnings.
A market cap of $7.5 billion or so for a 66% interest - maximum throughput of 100,000 tonnes/day at the concentrator - will $3.50 copper be sustained beyond the next 36 months?
Lets wait and see how accurate Zeus was in showing a major downward expansion of Hugo North - the wealth of OT lies in the high grade block caving, no question. They were down drilling from the exploratory drift in the Spring ... no results published. They were drilling Heruga (the child bride up for marriage IMO) offset .... no results published. They were extending the Zeus survey north through the extension and towards the airport showings ... no results published. ETG is supposedly probing the potential Western offset/suspected parallel trend (over which IVN has a ROFR). No results.
Chinalco ... where are you? Who is really going to mine Heruga? Looks like a property for sale provided the goods are in sufficient quantity and grade at Hugo North. The problem of OT isn't finding good ore, they already have too much to mine in our lifetimes, it is getting the best ore tidied up with a bow to drive up nearer-term cashflow.
Watch that Hugo North extension ... the value may be there, but we are in speculative mode now - I am a believer in the best being yet to come, but it has to be based on expanded hi-grade resources sufficient to allow the sale of Heruga?
This is much more fun than October-December '08!
CG