I agree it's nerve wracking to watch the SP behave this way - but I've been around CCU for a long time - and every time my instincts have told me to run I should have been pushing the buy button.
None of the major shareholders are selling.
The IGV of the stock is about $2.50 an ounce for the reserve alone (not including the resource figures), and the ore is being mined and stockpiled for treatment as we speak.
The process plant is the great unknown, but these things get worked out. They may have made some bad decisions regarding equipment selection on the basis of price, but I've never seen a miner not put their hand in their pocket when the money needs to be spent when the cheaper options have been exhausted. A bit like the US, can be trusted to do the right thing only after all the other avenues have been exhausted. I'm ready to hand brickbats to them if the quarterly progress report doesn't show some improvement.
I really think Management need to be stepping up and putting some more skin in the game - that would be a good show of confidence.
CCU Price at posting:
25.7¢ Sentiment: Buy Disclosure: Held
