re: metminco�s imminent resource upgrad... Based on Charlie...

re: metminco�s imminent resource upgrad... Based on Charlie Singer (London Broker), we are talking about a target price of 50c, right? The conversion is 0.33 GBP = 0.507385 AUD, have I got that right? That is about a 100% gain on Metminco still coming. Hope the market holds, as I am sure that is exactly what everyone needs right now.

Broker snap: Singer says Peruvian tax fears overdone at Metminco
By Benjamin Chiou
Fri 10 Jun 2011

LONDON (SHARECAST) - Metminco?s shares have dropped by 20% over the past week on concerns over a potential windfall tax on mining profits in Peru, but Singer Capital Markets believes that fears are unreasonable and keeps its ?buy? rating.

?The Peruvian election result spooked mining investors as perceived left wing candidate Ollanta Humala won a 5 year Presidential term. His proposal for a windfall tax on mining profits was the main fear and on Monday morning investors chose the ?sell now ask questions later? approach,? said analyst Charlie Long.

However, Long thinks that given the strength of the mining industry in Peru ? combined with Humala?s modest representation in congress ? high taxes are an unlikely outcome.

Singer says that the miners contributed a large amount to Peru?s strong economic growth over the last decade, so ?Peruvians want to protect the mining sector and there is little appetite for the sort of drastic changes.?

A target price of 33p is kept.


Newminer.