Dont forget CUO has around 50% of production hedged for 2 years. Most hedging at $7,050AUD/t but some also around $7,900AUD/t which makes them profitable for 2 years no matter what the Copper price.
Platinum accounts for approx 1/3 of CUO's value and this has been hit hard with their holding in Platmin falling from $7 to $1 as Platinum has fallen to $800/oz. However its not all bad news as Platmin starts production (250,000/oz per year) in about 4 months. Cash costs of production are $350/oz making it one of the new low cost producers able to generate profits even at todays depressed PGM prices. Many of the older deep South African mines have production costs of $1,000/oz or more so its possible that rationalisation in the Pt industry which will see Platmin come out a winner thus making CUO a winner.
- Forums
- ASX - By Stock
- CUO
- eps for 09 and 10 are greater than share price
CUO
copperco limited
eps for 09 and 10 are greater than share price, page-5
-
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)