Interesting perspective on copper priceshttps://www.youtube.com/watch?v=R-VoX44S0Qo
Talks about $5 copper as a baseline and potentially $10 copper. Says copper needs to be at $5 or so for miners (and smelters) to start to feel comfortable, but it really has to jump up much higher and then settle back down to that price.
Not enough copper being produced, new mines are not profitable at these prices, smelters will not make money at these prices, China demand is growing in spite of the real estate downturn.
BTW Freeport president says copper is at a "watch out!" status--meaning it is about to explode.
Again. Every .10 rice in copper should produce .35 increase in shareprice if you factor the additional profit at a PE multiple of 10. In other words, theoretically $5 copper should produce a $5 plus share price (USD). That is on Gibraltar alone. Does not factor Florence or other assets.
The market rarely responds as I think it should, but this is just based upon my assessment of the fundamentals.