RE: Your thoughts on US/CDN $ Parity.This is an excerpt from a Globe and Mail article on dollar parity a few weeks back:
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"But sorting out the full impact ofchanging currency is a tricky business. For Byron Lutes- CEO of SouthernPacific Resource Group- the loonie's rise against the greenback ishelpful right now. The reason: Southern Pacific is building a$450-million new oil sands project . Of that , $100 million isdenominated in U.S. dollars - everything from steel to major partsmanufactured in Seattle. The higher the loonie goes , the cheaper thoseparts become.
" Right now, because we're in such a capital-intensive period, we're probably coming out a little bit ahead " , he said. "
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Iwonder what the savings would be for a company building a $2 billiondiamond mine in SK , at this point in time ? Sure beats building a minewith an 85 cent dollar. Will the loonie be above a buck in 5 years when the diamonds are being sold or is that average of 85 cents valid? I'll have to leave that to the soothsayers.
Crocky