It is a bit of a conundrum. One would have thought that, with the substantial drop in London Metals Exchange warehouse numbers for copper down a whopping 452,800 tonnes from its yearly high, copper prices would be higher than what they currently are.
Overnight trade in copper was actually down !% on low volume to $ 6654.54 American dollars .
The reason given for the price decline was that the market was nervous of what was happening in China manufacturing and was awaiting the next report.
In Australian dollar terms, the current copper price should see a profitable outcome for CuDeco but naturally a higher price would be welcome.
I endeavoured to estimate from the photo how many containers Wayne had for the export of the direct shipping ore but could not come up with a figure I was certain of. Container plus concentrate at approximately all up 40 tonnes was my guesstimate.
It looked from the photo that what was spewing out in a pile on the right of the containers could be the direct shipping ore but this was not confirmed in the announcement.
If it turns out that there is a global shortage of copper coming, that will be not only beneficial to CuDeco and the benefits that will follow with higher prices, but it will help the junior explorers which have been suffering from readily available finance.
It will also help other finds like AOH's Roseby making it more attractive for them to be developed.
It will improve employment in the mining industry which continues to see redundancies. BHP Billiton have just laid off an unspecified number of workers at its Cannington mine.
We want all of the junior explorers in the Cloncurry region to become miners as their success will add to that of CuDeco's through their use of CuDeco's rail and port facilities.
CDU Price at posting:
$1.87 Sentiment: Buy Disclosure: Held
