COPPER DEMAND !!!!! COPPER SOARS ON SUPPLY CONCERNS : Financial Post p. 5
Strong demand in Asia will drive commodity boom. “ Demand will double within 20 years…”
“…mining and metals projects use huge amounts of capital, require long lead times…”
CALLINAN MINES LTD. represents both a short term and a long term investment opportunity for the investor.
SHORT TERM: Income- cash- no debt- split with no-cost NEWCO shares to CAA shareholders.
LONG TERM: Low cost royalty company (CAA) that should trade @ 10-15 x revenue on higher commodity priced generated revenue. WAR BABY CLAIMS. Based upon improving relations with HudBay, a deal involving the development of the War Baby appears to be a “no brainer”.
Since the high grade copper War Baby appears to be an extension of the 777 ore body, and that HudBay is mining close to the boundary, lead time to production would be short and development costs would be low. Shareholder value of both companies would be enhanced over several years as such a deal would significantly extend the mine-life of the highly profitable 777 Mine.
Trading symbol: CAA ( TSX venture)
Web site: www.callinan.com