I'm quite stunned at the current share price fall. Frankly I never thought we would see under $10 again. The first time we hit $10 was around April 2006. From about October 06 we moved out of that range and progressed all the way to $22.20.
2006 production was over 42K. 2007 47K+ and 2008 est. is around the same for reasons previously mentioned. Yet 2008 copper prices have moved above US$3p/p. We have significantly increased revenue and known resources since 2006. Kinsevere has come into production and our EAF plants should be up and running by now. Stage II still on track.
The DRC review is dragging on, but should be settled sometime soon....(Congo time) and then we can get on with releasing updated resource estimates and Kulu SXEW announcement.
On the flip side we have had all DRC miners suffer significant falls, market turmoil since Oct 07 and Zambian miners suffer from new Govt. tax laws and power cuts.
So a hell of a lot has changed since 2006, when we last saw these prices. I've noticed as I'm sure many of you have, interesting trading patterns emerging again. Some insto is still making money here and there has been a lot of shorting lately in Canada.
So Merkin don't ask me when it would be a good time to buy. Way back when it was $15-$16 I thought it was good buying. Couldn't believe at the time we were seeing that price. And history has proved I was very wrong. But sub $10.........well I just can't work that out!
All the best folks.
KKR
AVM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
