What risk is there in the deposit? They have a 25.9 Moz probable reserve and 52.8 Moz in indicated and inferred resource. (23rd Jan 2013)
Processing - They have problems here granted, but you don't get this far into the development phase, with heavy reliance on bank loans without being able to make a solid case that the project is going to work.
Silver Price - Some of this risk has been mitigated with a $32 an oz hedge in place. Auto makers are hoarding silver now because they can't rely on it to be delivered in a timely fashion for just in time practices to work and the paper price is disconnected from the physical.
A market cap of $50 million would be a screaming the windows out buy. There was a silver miner that was bought out on an IGV of $5 an ounce. That would put CCU at $125mil. CCU has established pits and a processing plant in place.
The SP has been tracking lower on small volume, which doesn't indicated a rush for the exits. Try and acquire a modest holding on market and you would have to drive the SP up a few points.
CCU Price at posting:
30.6¢ Sentiment: Buy Disclosure: Held
