great time to be a producer

With the copper price at record levels of A$9,181/t overnight Phoenix Copper's timing to ramp up production couldn't be better.

I have just re-run my DCF model using todays prices based an 8 year operation which produces 5,200 tonnes per year using the hub and spoke model. The current (NPV) valuation using an 8% discount rate is $1.02 per Phoenix share. This places no valuation on their Yorke Peninsula tenements, nor does it value the historic Burra pit or other potential sources of a more major discovery between Burra to Kapunda.

Next year should be excellent for PNX if the recent trend continues. It will be one of my stocks to own in 2011.