I thought it was clear that I felt that $2 was "dreaming."A few...

I thought it was clear that I felt that $2 was "dreaming."

A few points. Firstly I had asked how the company will make an annualised US$43 mill from operations. This is what they touted they would make in H2 2008.

I can't see how $2 is going to eventuate without some drastic reductions in costs and in saying that I am assuming a copper price of $4 per lb (LME prices for refined copper metal remember not copper in concentrate) will hold the rest of this year (at least). The current cost are $2.39 and as you have noted, when they strike higher grades that will come down. Last year they managed costs of around $1.60 mining higher grades.

You are aware that they produce concentrate right? They don't get $4 per pound for contained copper in concentrate. It is much less than that because the concentrate has to be refined. As far as I know they never released the agreement they have with the refiner so we don't know how those costs are determined. If anyone knows please post this information.

So like I said I reckon $2 per pound profit is dreaming but I will be very happy to be proved wrong ...assuming I still hold the stock by H2 2008.