lundin report re ucl and iran, page-2

tarzan

Looking at the recovery in the sp, Lundin has plenty of company. I've been in and out of the market a few times since last Friday's plunge but always at higher prices. My expectation is that the sp will at least touch 3c in the next day or so and my trades are set accordingly.

Their is ongoing interest in this stock and reasons are not hard to see

1. Optimism re zinc prices going forward. Zinc remains in high demand and short supply over the short to medium term.
2. A fabulous resource already with high probability reserve status. Not only is the resource of world class, reserves have been thoroughly investigated and treatment options researched.
3. A high degree of goodwill in relation to development. Even though the bombshell of a letter from last week seems to contradict this, the Iranians in general seem very much in favour of UCL being in Iran and doing the work. Iran is no different from the rest of the world in that there is a divergence of opinion among those making decisions. Last week's letter was from one voice only and many believe this one voice is not representative of the climate as a whole.

I plan to keep by core holding for a while yet. I can perfectly understand why the prudent, timid and fearful have sold down or sold out but I remain confident in UCL, expecting a short term recovery to the 3c range, a medium term return to the 4 to 7c range and longer term sp around 50c or more. The movement in the sp today is in line with my expectations.

Opaline UCL101