1. COPPERCopper price: $US1.29 /lb which is some 10.85% less...

1. COPPER
Copper price: $US1.29 /lb which is some 10.85% less than the high of $1.43 on 19 April.

It is in the last couple of days that the copper price really got going. First we started with a range from 1.19-1.22, extended that to 1.23 and few days ago we had the range 1.22- 1.245.

We have now been trading in the range 1.26-1.30 for 2 days and the price is strengthening.

This year, there is a shortfall of 650,000 tonnes expected and which has to come from reserves.

OXR is to produce copper in March next year and $2 out of every $3 income is then expected to come from copper. Construction at the Khanong project is proceeding:

http://stocknessmonster.com/news-item?S=OXR&E=ASX&N=219792

2. GOLD. The present income is from gold (165,000 ounces/year) rising to 230,000 ounces much later in the year.
The SEPON plant will be expanded to achieve this. Production cost is reasonably low.

Current gold price is $US393.70 and for it to rise much more, one or another or both factors will need to come into play IMHO:
1. The US economy runs out of control due to a sum of factors which have been discussed in various articles.
2. Prominent attack(s) by terrorists.

It is these factors which may induce the population to buy gold. There is a probability that both could occur thereby reinforcing the gold uptake.

So, summing up, OXR is in a good position with regard to metals, IMHO.

Info on OXR:
http://www.hotcopper.com.au/post_thread.asp?fid=1&tid=106312#292783

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.




Gerry