RE:A lesser-mentioned reason high CU prices are good for OCjwall34 wrote:
So, the question then is: What would a company like Freeport do with these extra billions? It certainly makes a 2-3 billion dollar expense on a generational asset like Santo Thomas seem much more affordable. Now consider that every major copper producer in the world is going to have the next 12-18 months to accumulate cash while Oroco proceeds to bring Santo Thomas ever closer to the feasability stage.
It's a good point, I was looking at the balance sheets of several of the majors the other night. And not just the major copper players others like Barrick Gold who are looking to add copper. Many are sitting on billions of cash with ample room for debt and as you say those cash piles are going to be rising rapidly. My worry is someone jumps the gun on ST before the resource is fully defined.