The real issue, and why SFR is where it is (OK perhaps I am being a bit harsh saying it is overpriced) and most of the 1% copper operations are not (bar the really big ones - i.e the ones with JORC's over 1mill oz and large exploration targets e.g. MNC) is that is the price of copper were to halve ALL of the 1% operations (again bar the big ones like Oyu Tolgi and the massive mines in Peru & Chile) would be completely marginal and close down -
Why? A tonne of dirt for $50 revenue is not profitable.
Better to go mine 70% f/e iron ore at $100, and why mines like SDL are attracting so much attention right now...
See the problem?
Again, the silver is the one to watch with ROS right now. These guys have over 200g/t silver and silver pops up near $100 as everyone is predicting, and the people that sold that mine to ROS have made a big mistake. Perhaps they don't believe the silver story and that is why they really sold out...there are plenty of big banks who are not forecasting silver to run that hard (but they could well be off with that one if what is being reported about silver reserves is true)
By my calcs at $40 silver (31.1 gr per troy ounce) 200g/t silver may be coming in at about $220 a tonne
But with $100 silver 200g/t tonne $600 a tonne
Again, I said IF, and we need to see on paper what they've got.
ROS Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
