Just in case anyone missed this, I thought it was a good read.
"Copper down but not out" Robin Bromby From: The Australian February 23, 2011 8:38AM
"THE red metal took a nasty fall overnight, dropping $US230 to $US9580 a tonne.
Just a week ago it was more than $US10,000 and analysts were talking a new record of $US11,000 a tonne this year. In the more immediate future, the key test will come tonight on the London Metal Exchange when traders will be waiting to see whether copper can consolidate here or break below $US9500.
Traders clearly ignored the economic news ? US consumer confidence figures and manufacturing activity, and German consumer confidence was all positive. Rather, it was Libya that dominated sentiment.
But this may be only a brief correction. For the first 11 months of 2010, copper was in deficit to the tune of 257,000 tonnes (against a 2009 surplus of 230,000 tonnes) and figures for December from the International Copper Study Group added another 50,000 tonnes to last year?s deficit total.
In the short term, there is consensus that 2011 will be another year of substantial copper deficits.
But let?s look at the long term.
A recent Xstrata presentation shows copper supply/demand through to 2020. The demand line rises steadily over the next nine years, while the supply line - which takes into account existing operations plus committed expansions - falls away two years hence like a firework after its brief flaring. The difference between the two lines by 2020 is a breathtaking 7 million tonnes deficit."
Copper supplies according to the International Copper study Group(ICSG) are still heading for a deficit of 435000 tonnes for end of 2011.
If AVB keeps hitting copper at the rate and quantity they are relative to acreage drilled, they will begin producing just as many current producers are nearing the end of their resource.
The next assays I believe will come all together and would expect them within the next two to three weeks. Bring them on !
AVB Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
