well its been a very tumultuous start in 2011 for CCU. I think a few people getting carried away on HC when they talk about $100 silver and $5000 gold. Dont get me wrong I hope this happens but that sort of thing is a bit of a pipe dream.While days like Tuesday are exciting where the SP rose 15%+ I prefer the steady rise that we have seen over the past few Months.The chart does indeed look fantastic.
Some are saying its due for a pullback but I prefer to use the word consolidation before she starts running again.As some one pointed out we are only about 300 days before silver starts to get poured. We can expect finance arrangements to be finalised very soon and hopefully further resource/reserve upgrades.
I am sure Management are doing all the work required so production can get going in 2011. Should they be focusing on production or exploration??I cant see why they cant do both.Getting into production in 2011 I dear say is the priority and at the same time taking advantage of these silver prices. I am sure they can chip away at exploration and build on what is an already impressive reserve/resource base. There will be a lot more silver in this prospective area but its not going anywhere so weather they discover this in 2011 or 2012 is no big deal as we have plenty of reserves (14 moz) to keep the mill ticking along.
Everything is looking great for this Company and hopefully POS can play its part as this is the big factor that is beyond Managements control and obviously has a huge impact on profitability.
CCU Price at posting:
57.8¢ Sentiment: LT Buy Disclosure: Held
