westcott, can i throw in a few boobs worth. IMO, UMC hit $2.80 at peak of super cycle/boom which meant the in ground value was $3.90.
in 10 months time, I do not see the super cycle/boom being at the June 08 peak. So for me, the $3.90 in ground value is the max for UMC as an explorer.
If UMC become a producer, then as you would have seen from the chart I posted, the in ground value would be around the $4 - $6 mark. ie at $5 per tonne, around $4 share price.
Point of all this in the "short term", the key is getting to production not creating tonnage by exploring. Extra tonnage can come from drilling while producing. With production, there is greater risk. MGX, AGO, FMG all new producers copping it - tough task the more I write and think about it - but not impossible.
UMC Price at posting:
99.0¢ Sentiment: None Disclosure: Not Held
