Thanks for the confirmation Giant1. I note that I did price the copper as being in the ground so clearly, yes, there will be a cost to dig it out. The company actually estimated that in one of their ealier documents, at $1.08 per lb if I recall correctly, which would be a little less than a 1/3 of the current price for copper (although it is falling a bit in the current environment - not unexpectedly). Hence the asset value of $145 per share, costs are probably going to be about $50 per share, hence profit is still enormous - it is just that you have to wait and you have to raise the money to do it, both of which will obviously detract fromt the selling price. So, I look at it this way - assume that someone wants to buy it and can see they can make a profit of $90 per share if they owned it. How much would they be willing to pay? $1, $2, $5 maybe $10, $20 (lord be praised). Then consider what you would think, if you were Mike Clifford, what would you sell it for - (insert same numbers). Whatever conclusion you come to in terms of the cross over, it will be more than 16c, considerably more. Hence, my logic is that you have to be there when this happens and since nooone knows when this will be, holding is the best strategy. Hopefully, I won't have to hold so long that I end up leaving them to my kids.
Mike Clifford is a decent bloke - straight and honest in his approach to dealing with holders. He is also very happy to talk. Concur with Giant1.
PMH Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
