copper continues to rise

As per the below report it would appear ther will be a considerable shortfall 429,00 Tonnes this year and 825,000 tonnes next year.

My argument for MG14 is that this area alone at present prices based on 67% recovery is bankable. From previous reports it could be concluded that a recovery rate of 80% may be possible. As previously reported by Gunson 67% recovery at Aust$3.14 repaid the capital cost plus a surplus of $1.3M as per my previous calculation at A$4.08 this surplus would rise to $27m which is going higher every day. Add to this a potential 19% increase in recovery and todays price of US$4.36, this should be able to stand alone even if windabout is not viable.

Once the copper price gets high enough more projects will be fast tracked, i.e. Xstrata/IRN in the Philappines, which no doubt will bring the copper price back. I hope Gunson doesn't miss out due to inaction.

As far as Cobourn is concerned it was 2005 when state government approval was given, it was 2006 when serious talks were held with China, it was January 2010 when a DFS was released and it was September 2010 when talks with 7 potential partners was supposed to be finalised! For those that can't remember the share price reached 45c on state gov approval in 2005, todays price is still a long way of showing the potential within this company.

Copper Futures Climb to Record After Data Showing Growth in China, U.S.
By Yi Tian and Claudia Carpenter - Dec 30, 2010 Copper climbed to records in New York and London after U.S. businesses grew at the fastest pace in two decades and Chinese manufacturing expanded, signaling robust demand.

The Institute for Supply Management-Chicago Inc. said today its business barometer rose to 68.6 this month, the highest level since July 1988. A purchasing managers? index in China was 54.4 in December, according to HSBC Holdings Plc and Markit Economics. Figures over 50 signal expansion. China and the U.S. are the world?s biggest copper users.

?The trend is on for higher prices? as the economy accelerates and demand rises, said Richard Ilczyszyn, a senior market strategist at Lind-Waldock, a broker in Chicago. ?It?s supply concerns that set up this whole bull run.?.

Copper futures for March delivery rose 5.1 cents, or 1.2 percent, to close at $4.3625 a pound at 1 p.m. on the Comex in New York. Earlier, the price jumped to an all-time high of $4.379.

Global inventories are down 19 percent this year, heading for the biggest annual decline since 2004, according to data compiled by Bloomberg.

Stockpiles will continue to drop next year as supplies fall short of demand by 825,000 metric tons, Barclays Capital said in a report on Dec. 22. The shortage this year is estimated at 449,000 tons, the bank said.

Prices have jumped 30 percent this year. Copper is used in homes, electrical grids and appliances.

?I saw more construction than ever? in China during a trip in November, Jay Goldstein, the president of Montreal- based Lorbec Metals Ltd., said today in an e-mail.

On the London Metal Exchange, copper for delivery in three months climbed $95, or 1 percent, to $9,495 a ton ($4.31 a pound), after reaching a record $9,550.