is higher grade copper coming .., page-21

Hello Whatnogravy,

I am finding it very beneficial to read the discussion both ways.

I find it hard to understand how the market can value something at 20c, then think the same thing isn't worth thirteen cents when most of the fundamentals seem in tact.

From what I have read about the commodity cycle, my understanding was, as in IO, the prices rises so much everyone jumps on the band wagon, and supply subsequently increases. Once these new commodities come into production, supply far outweighs demand and thus the price reduces, so I don't understand if these are not the circumstances, ie supply increasing faster than demand, what is the logical reasoning behind it apart from a cycle mentality I wonder?

It was also my understanding production costs are increasing throughout the mining industry, which is then passed on through the rise in prices. Conversely, if the price decreases, I would assume the reduction of production costs would be a factor, hence the belief one would not lower so dramatically without the other.

For example, many people are speculating the costs of energy in Chile, which produces 40% of the worlds CU, (could be 30 but I have read 40), will cause an increase in the price of CU. This is a situation whereby both the costs of TMR and the price rise in copper are leveraged to each other. Also, the weaker US dollar is leveraged to both also I believe.

Also, as stated by Mr Callaghan and a previous poster, if the price drops so low, then many mines will no longer be viable or be viable to come into production, hence a lowering of supply, hence a rise in price.

Also, in regards to whether TMR should release a forecasted price or not...

"Maybe we should have kept our mouths shut instead of setting challenging targets for ourselves early on," Callaghan said after the World Copper Conference in Chile last week.

I remember a previous poster lambasting Mr Callaghan for mentioning "staggering" results without any figures at the time, but now we are all disappointed when a forecasted figure is not presented.

I am learning as I go but am reading all your informative and thought out posts with interest everyone. Correct me if I'm wrong with anything, hopefully politely. Good luck holders! Now I have to go, am running late writing all that.