M&G are buying CDU for many of their own reasons and I bet one would be because they know the following: Below is only part of a very interesting free article from Saturday's Money Morning which happens to be very relevant to our fast developing into a miner CDU:
China will burn brighter than ever in 2013 and 2014
In the last few years the China-bears have had a field day with the fact that China's economy decelerated from a growth rate of 11.9% in 2010, down to 7.9% by the end of 2012.
'China's going to crash... Australia is going down with it... Sell all your mining shares'.
It's been all over the media. I'm sure you've heard it too.
But is it accurate?
Scary doomsayer predictions make fun reading, but do the facts back this conclusion up? No, I don't think they do. I'll show you why in the following pages.
The obvious fact to point to is that the China bears have had nothing to growl about lately. The latest growth rate of 7.9% was a big jump on the previous 7.4%, and is actually above target. And let's not forget that 7.9% is still stellar growth by any standards.
You need to also remember that 7.9% growth today adds far more to China's economy — and therefore requires more commodities — than 11.9% growth did when China was much smaller.
The first way to leverage resurgent Chinese growth is copper
In the last few years, copper's performance has been remarkably unremarkable.
Think about it — last year the world was supposed to be ending, China was supposed to be imploding, and the financial system was supposed to be unravelling...yet while many commodities plummeted...the copper price just hovered.
To me this is incredibly bullish. If copper can hold its ground when the kitchen sink is thrown at it...then what will it do when China's growth is accelerating?
The copper price's resilience tells us something important: that the market is still very tight.
That's partly because China imported an all-time record of 4.65 million tonnes of copper (worth around $37 billion) last year, despite all the anxiety from the China bears.
In fact China consumes more copper than any other country by far. Over twenty years, it has gone from taking 10% of global production to almost 40%…….."
The article continues, so feel free to sign up if you wish.
CDU is rapidly constructing our process facilities thanks to great WM and team planning plus no wet season to slow us down. It looks like our timing to become a producer this year could not be better and it is only a matter of time where we should see a true reflection of our potential in the SP. Anywhere from a $1 to $4 divvy will have a monumental impact on our SP and it is the rich native copper mining that I feel could deliver those amazing dividends and time will tell….not long to wait and see eh.
All the very best to long term holders…and remember to not even sell one share until you see how big your dividend cheques are.
CDU Price at posting:
$3.90 Sentiment: Buy Disclosure: Held
