I do believe silver/CCU has the potential to do something extraordinary. People saying silver can hit $ 40 an ounce next year. On nearly every occasion when something starts a run estimates are always conservative. If gold manages to hit say $ 3000 an ounce in a serious boom, that would put silver at 3000/16 which is $ 187.5 an ounce (historic gold silver ratio of 16:1 used). At $ 130 an ounce profit with 2.5 million tons of silver production, that equates to an after tax/cost profit of 325 million. Considerable amount for a company with 140.9 million shares. Would put the share price at about $ 30 according to basic calculations (i.e 325/140.9*12.35, 12.35 typical mining constant). Now $ 30 a share is a pretty extreme view but there is some rhyme or reason to it. Who knows? If silver runs CCU will go harder as I think CCU is currently undervalued. I think $ 1 a share is not to far away for CCU. Once financing is complete we should hopefully see CCU start moving a lot higher.
ALL MY OPINION AND PLEASE DO NOT MAKE A DECISION BASED ON THIS POST AS EXTREME VIEWS ARE PRESENTED.
CCU Price at posting:
47.5¢ Sentiment: Buy Disclosure: Held
