RE:RE:divd moneygoldens wrote
I bought at 10K @ $0.95 and another 10K @ $0.91. My timeframe is 5 years and I am bullish on Copper. I really don't think there will be more production coming online soon enough. Some of the bigger projects have been shelved due to costs and an unstable copper price. Just waiting for China to realize that Covid is here to stay and you can't keep locking things down. Oh and then there is India.
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Yes in looking at ARGs situation they are a company with over $300 million US invested in it and aprox. $25 million in net cash and at these copper prices on 60 million pounds of production they are not making a lot of money. Imagine a new company that had to borrow the entire $300 million US and build a new mine and not have any revenue for years. If they had to pay 6% interest on that loan that would cost them aprox. the interest alone would cost aprox. $22 million per year never mind paying back the $300 million US.
Of all the small copper miners i have looked at ARG is in a class of its own with net cash and long life resources and can survive low copper prices better than almost any other small producer. At the same time if copper prices do rise ARG will be making a lot of money and with no debt all that cash can go to dividends and share buybacks etc.
What more can you ask for?
Good luck to all.