Very interesting to note the copper cancelled warrants (metals marked for delivery) jumped from 62K to 104K in a single day. Copper stock at LME monitored warehouses is down at 258K tonnes.
When the prices dropped from $3.9 to $3.60 this huge buy is happening for delivery. So in my opinion this should give v a strong support for the CU prices.
Can someone find out where this CU is heading? China or US? will be more happy to see these stocks are heading for US.
I did a very rough analysis on ABY's cost of production. Even after considering their production ramp up costs, care and maintenance expenses of Gordon mine the cost of CU per pound is around $2.60 only (both nifty and gordon put together) so ABY should be making profit and a resonable profit (10cents eps for the whole year). On the other side if the demand picks up we will have more gains... could see some light at the end of the tunnel.
NO news (from Europe and China) will be a good news in the coming days.
ABY Price at posting:
65.5¢ Sentiment: LT Buy Disclosure: Held
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