Anyone watching copper prices lately? at US $7275/t (~A$ 9700) Roseby's life-of mine cash surplus is estimated at A$3.9 bil (April feasibility results). However Cu is sitting at US$8151 (~A$10868) suggesting the mine today is worth >A$4.5 bil. For a company with a cap of 52 mil that's not bad. Copper futures for Jun 08 are now sitting at around US$6000t projecting (very roughly) a LOM cash surplus of $1.5bil. This is all hghly leveraged on the Cu price obviously. The other factor worth noting is the current gold price which I haven't even mentioned yet. At these prices the gold mined will pay for the mine, with the copper deposits providing the profits. I'm really happy those AUM speculators came along. I sold my shares at .25 and rebought back in this morn at 0.185. Everyone saw how spectacular AUM's rise was on only an inferred resource (a very big one mind you), why hasn't URL enjoyed the same success, when bearing in mind the most of URL's resources are at the measured stage? I personally believe everyone is playing a waiting game, due to the incoming BFS and the high volatility of world Cu prices (the mine is still over a year and a half away). But if one was wanting to take a punt on high world copper prices in 3 years time, i can't think of a better way than URL. As always DYOR because I could possibly be considered a metaphorical taxi driver.
URL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
