You've got to believe a large fall in the pon to accept current valuation of MCR imho. A coy with perhaps a sustainable 40 business model (plus growth prospects) being perpetually given a PE of 7 on the basis of short mine life.
If the pon does dive from current levels (all futures out 27 mths close to current pon) then all these miners like Norilsk, Xstrata, CVRD and Zinifex have got it wrong, as have the likes of BHP etc with their high CAPEX laterite projects. Will be interesting to see if these hardened miners, who deal with their real customers in China and earlier in their careers have trodden the byways of the third world, have got it right or whether the passportless guru's of wall street living in their virtual worlds with their economic guff have it right, the guys who brought us minced up debt to go with our psuedo-food burgers.
Regardless, if their is a pon crisis MCR will not only ride it out, but Moore with be visiting the fire sales, ie heads I win, tails you lose, as far as MCR future. Not sure it won't be going sub 350 though. I"ll be collecting on the way down though. The August resources rebound was mostly too fast catch.
Monday I"ll try to get a few more, but leave plenty of firepower for any further fall (unless something else on discount takes my fancy better). Would prefer JBM, but effectively stolen from us.
EL
MCR Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
