Since Bougainville?s President, John Momis recently made an announcement of a strong Chinese interest to buy out Bougainville Copper; the BOC share prices shot up dramatically. This reminds us of the failed attempt of the BCL takeover by American Pritzker group during the civil war in 1991. Pritzker offered then a reported price of 3.75 USD per stock. Gold prices were about 350 USD per ounce as well as 80 percent lower for copper at the time. Also silver was much lower in 1991. The Pritzker offer was rejected at the time by Rio Tinto with the furious words, ??we do not give away our crown jewels!??. Compared to today?s market prices the equivalent virtual bid should be round about USD 20 per share. Therefore, any offer that might lure Rio Tinto has to be at 30 USD per stock or maybe even higher. That makes BCL an enterprise valued at 12 billion USD. However, it is still the fact that the mine only needs to start running and needs not to be opened completely once again. Besides, it might give rise to lure seven rich mining licenses more. As China disposes more US dollars than economically reasonable, the takeover could turn out to be a good possibility to get hard base and precious metals for some soft printed green paper.
BOC Price at posting:
$1.70 Sentiment: ST Buy Disclosure: Held
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