It all comes down to where the copper price will be in two years time when they are actually producing.
BHP's $5B ODO expansion, Oxiana's Prominant Hill.. and the hundreds of little copper shows like URL bringing on surplus production in the next few years will ensure it won't be at the levels we are now and probably below $2/lb. People are factoring this in to the price. Add to that the fact that they now need to come up with $340m at a low price will add a shiza load of dilution. Banks will be weary of lending that much money without locking in significant hedging
URL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
