All the above makes sense and if you have a look at BSE you will see that they ran strongly up until the time of funding and then they have gone sideways, trading at about half of their future price target.
I see the same happening with Gunson; a bit more upside and then a sideways trading range until the project is up and running, when we should then be getting close to the analysts projected target price. (once the JV is approved I would expect the analyst reports to be updated based on the reduced risk)
On top of the potential copper find by Xstrata there is the small mine operator looking to release some value from the MG14 copper deposit. Last I heard he had gone off to the bank manager for a loan.
On the assumption that he knows what he is doing, he should get the approval sometime and this is going to provide additional upside and interest in the stock. The project generates a small amount of cash flow but a free copper processing plant over 2 years.
It is all looking good for Gunson and from these levels I think there is substantial upside over the next 2 years, as they head towards production.
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