Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Copper - analysis -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (1226)	6/8/2005 5:11:47 PM
From: Stephen O	Respond to of 2131

We all realise China is big but India is coming on fast. On average India uses about 1/2 the copper per capita than China so more room to grow.

To: russwinter who wrote (1226)	6/9/2005 12:13:08 AM
From: I_C_Deadpeople	Respond to of 2131

Ok Russ, I admit it, it has been me. I can't stand the pressure any longer, I have to confess. I have hoarded copper, could be up to 100 lbs by now and I am going to 'unleash' it onto the market place with one fell swoop. Then, you can sit back and watch the futures market quiver.... Ah, thought the thread needed some bad humour...

To: russwinter who wrote (1226)	6/9/2005 8:07:57 AM
From: John Sladek	Respond to of 2131

Russ, the secret of my penny jar is out! These mystery hoard stories have been around for over a year, and all I can say is they must be locked up tight, because nothing much seems to show up on the market

To: russwinter who wrote (1226)	6/9/2005 10:08:42 AM
From: David Semoreson	Read Replies (1) \| Respond to of 2131

Agua Rica NPV of $4.5 billion at spot prices! Northern Orion has calculated a preliminary, pre-tax, pre-royalties Net Present Value ("NPV") at an 8% discount rate of US$282 million for the life of mine with metal price assumptions for copper US$1.00/lb, gold US$400/oz and molybdenum US$5.00/lb. Pre-production capital payback is estimated at 6.1 years based on the above assumptions. Sensitivity analysis indicates an increase in NPV of: - US$ 23 million for every US$0.01 increase in the copper price; - US$ 91 million for every US$1.00 increase in the molybdenum price; and - US$ 9 million for every US$10 increase in the gold price. Anticipated cash costs of US$0.23 per pound of copper, net of gold and molybdenum byproducts at the above price assumptions for the life of mine are in the lower quartile of cash operating costs. Cash costs decrease by US$0.003 per pound for every US$10 increase in the gold price and US$0.047 per pound for every US$1 increase in the molybdenum price. Based on the assumptions outlined above, at current metal prices of copper US$1.55/lb, gold US$425/oz and molybdenum US$37.50/lb, Agua Rica would yield an NPV at an 8% discount rate of US$4.5 billion, a pre-production capital payback of 1.9 years and an estimated cash cost of minus US$1.30 per pound of copper net of byproduct credits. biz.yahoo.com