You will be correct, it will be a good year and you are indeed missing a few things (or choose to ignore them).
The outlook for 2005 for resources stocks is very good. I would say the best it has been in at least 15 years. You and I and those of us who have got on board MRX and other resources at close to rock bottom have probably done very well (I know I have) over the last two years. This year will be gravy.
MRX has a good future this year but don't blind yourself to the fact that part of that is because it is in the right sector at the right time.
The reasons why the share price have not yet gone up are also simple. MRX (management) have simply not been getting the runs on the board.
Sure, the company puts a positive spin on their announcement that they are working on take off agreements etc. They would hardly do otherwise, so you can't read much into it. When they come out and say that XYZ of Shandong Province has agreed to take x tonnes a year at USD$3000 or whatever the Cu price is THEN you will see something. You have to remember that these guys have been talking for a while with lots of delays.
There is a huge difference in saying you think the BFS will be positive compared to making a positive announcement on the matter.
The delays of getting back into production have kept the share price low. Chasing the Sulfides will be good in the long run but just now the market is keen to see the BFS and cashflow in.
Also you shouldn't forget the effect of the major shareholder selling out at a rock bottom price. This will (and has) certainly helped to nobble the SP for a while.
Remember, if you believe in this mob then just keep buying them until the announcement.
MRX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
