Freeport Prepared to Invest $5 Billion in Cukaru Peki MineThere are several media outlets news reports from April-May of this year reporting that Freeport is ready to invest up to $5 billion (US) in building a new mine at its Cukaru Peki discovery with RMC. These reports also state that Freeport values the reserves at about $18 billion.
There is also a recent paper on-line authored by Freeport entitled "Geology and Discovery History of the Chucaru Peki Cu-Au deposit, Timok Magmatic Complex, Serbia." It discusses both the high grade upper zone as well as an underlying porphyry lower zone and states that the porphyry, while still poorly defined, extends to "at least 2.1 KM below surface." The general theme of this paper is one of Freeport touting its discovery and all the hard work and diligence Freeport has put in to make this significant discovery.
When one couples the above information from Freeport with the fact that Freeport has spent the past 12 months vigorously trying to negotiate a more favorable ( to it ) operating JV agreement with RMC while putting a hold on all drilling, the logical conclusion is that Freeport is trying to force RMC into a cheap submission. RMC management's refusal to give away the project during these negotiationsand its steadfast stance over the past year are to be commended. Eventually Freeport or someone else will buy out RMC's JV interest in Cukaru Peki at a very significant multiple to today's depressed share price. And it will be sooner rather than later.