TSXV:CAV.H - Post by User
Comment by
jplaneon Oct 05, 2011 8:01am
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Post# 19120118
RE: RE: RE: Copper market down 23%
RE: RE: RE: Copper market down 23%Baja should be fine. If u buy bank shares it's only because of price . Governments will not continue to bail out all the banks. Many companies have hundreds of millions which will need to be kept invested in safe investments. Baja now to get it's money from U.S. and Canadian export development banks . I wonder why they are only paying 3.02%. Almost like a work creation project Baja has offered the governments (Oh ya that's almost the biggest govmt mandate at this time). That money is secure. As far as the price of copper falling: it likely will until inventories drop. Good thing half production sale is already guaranteed by forward contracts. A question for the more advanced investors: What are those forward contracts worth at this present time and what will they be worth if copper hits $2 ? U may wish Baja could sell them for the profits but I think it would breach covenants of the lenders. Someone e-mail the company as to these questions. jplane