This is just a temporary blip in the copper price. I read an AME report in June predicting the Chinese would utilise their strategic reserves later in the year and they were right. There are two extra bonuses that I think the western analysts might not have picked up on. One - China recently announced a massive (as in very very big) investment in HEP projects in South West China. A good thing for copper. and Two - probably the most significant - China is now investing heavily in projects offshore - Africa, Central and South America - there's going to be an overall lift in copper consumption in developing nations being driven by Chinese capital investment - they've got to do something with their massive FX reserves and can't invest it domestically without overheating the economy.... so... go offshore.
I'm still scared we're going to get taken over... all those cash reserves, very high cash flow and big reserves. Anyone for a "hotcopper" + Mgt buyout? Take AVM private. Anyone with access to the capital markets?
Happy New Year folks.
Stu
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