andrew a,I think we're on to something here. Picked up about...

andrew a,

I think we're on to something here. Picked up about 455,000 of these since Friday. Cant help feeling that a secondary listing somewhere else (AIM or Toronto) might help this one along - natural buyers? Worth a punt alone based on the impact of similar migrations (Equinox, Bolnisi, Anvil etc)

Looking at this today as I scurried around trying to find a copper exposure locally who hasnt hedged (SRL) or given (HGO) value away to traders etc - most other copper exposures (MRX, Havilah etc) arent inspiring and look pretty ordinary low grade, or no infrastructure. Matrix have given away what little upside there was to Glencore which puts them in the same boat as Hillgrove.

I figure roughly that if these guys get their cash costs from Chile down to about 100 - 110c/lb in 2008 (at the 3000tpd operating rate) as would seem probable based on putting previous quarters together, then at 311c/lb (today's price) they're in to make a really decent margin.

Even at 211c next year, TMR should be making a lot of money, and should by my calcs be able to finance Armenia with very little dilution. If they can scrounge a second hand plant cheaply for Armenia, there should be little dilution and a fantastic upside potential. Noticed that TMR can exercise their option at Charters Towers (see BMO) - what about this as a cheap starter plant in Armenia? Is it suitable?

Still favour the buy IBR route for the time being but warming to this one. If the Arbitrage closes TMR come into the picture.