RG,I totally agree with your sentiment! I have been holding it...

RG,

I totally agree with your sentiment! I have been holding it down from its high but lucky that I averaging down couple of times in the low 40's. In term of seeing the SP tumbling, it not pretty.

Personally, I won't be selling even when the previous high is reached as I can see big potential with the Puru prospects (ie resources are proven and bankable feasibility been done, just required CAPEX). The other bonus is the Berau coal mine, a very profitable even at this depressed coal price due to the very low production costs.

The current price level is a reflection of cash backing and Berau mine only ie we still got these world class potentials:

(i) Apurimac (>US$900M annual production at the min of 20Mtpa with >600MT resource). Capex of $125/MT and production cost among the lowest

(ii) Cuzco (>US$900M annual production at the min of 20Mtpa with >500-600MT resource). Lower Capex requirement due to sharing of infrastructures with Apurimac's mine and thus production cost will even lower

(iii) >1 billion tonns high grade iron ore with mine construction to start in 2011.

I would not sell SRK even at $2!