interesting post on cuo thread

Happened to see this excerpt (dont know where from) on the CUO thread, mentions URL. Perhaps things may be happening behind the scenes.


None of this worries Brian Rear of CopperCo, who is pressing on with getting first production from Lady Annie, northwest of Mt Isa, started in July at the rate of 19,000 tonnes a year. He says his business model was based on $US3304/tonne, well below the $US5800 or so it was trading mid-week. You can still get contracts out to 2010 at above $US4800/tonne, so not everyone is buying the gloom scenario.

One intriguing factor is CopperCo keeping its 15 per cent stake in Universal Resources, shares that date from the unsuccessful attempt by Keith Liddell and Robert Champion de Crespigny to have their CopperCo take control of Universal and its Roseby copper deposit. Rear sounds as if he is still keeping alive the hope he can do business with Universal some time in the future.

No wonder CopperCo this week agreed to sell all its output to Glencore International, the commodities trader that owns a large slice of Xstrata. Interestingly, Xstrata has the right to exercise an option to take 51 per cent of Roseby, a deal put in place to thwart CopperCo's bid.