Expect a bit of a sell off tomorrow as copper inventories are boosted ....hence my reasoning!
I would expect the shareprice to weaken to around 14 to 14.5c and are happy to be proven wrong as Im a long term holder now that they are producing....
Copper falls 1 percent in Shanghai as strikes diminish The easing of strikes at some copper operations has led to a sharp one percent price fall in Shanghai
Author: Richard Dobson Posted: Tuesday , 17 Jul 2007
TAIPEI (Reuters) -
Shanghai copper fell almost 1 percent on Tuesday after an easing of strikes that had been supportive of prices recently, while slightly lower London stocks and lacklustre China demand also weighed.
The most active Shanghai September copper futures contract was down 590 yuan or 0.9 percent at 64,270 yuan ($8,495) a tonne by the end of the morning session.
Copper for delivery in three months on the London Metal Exchange dropped $10 to $7,785, from $7,795 at the close on Monday, when the metal dipped $105 following the end of strikes at the Collahussi and Andina mines in Chile late last week.
"The easing of the strikes has stripped copper of its support, while higher London stocks have coincided with the seasonal slow period with lacklustre consumption in Asia," said Cai Luoyi at China International Futures Co. in Shanghai.
Shanghai spot copper prices ranged between 63,450 yuan to 63,580 yuan per tonne, down 610 yuan.
But strikes continued in Canada at Xstrata's Canadian Copper Refinery, and in Peru, where the dispute at Southern Copper Corp. was still not resolved.
In Mexico, the mine union said it postponed the deadline until July 30 for a threatened strike at three Grupo Mexico mines.
LME copper stocks rose 1,325 tonnes to 98,875 tonnes on Monday, but are still more than 48 percent lower than at the end of 2006.
In China, a more than doubling of copper imports in the first half of the year has hit domestic prices and slashed margins, with some importers redirecting material to other locations such as South Korea, said traders.
"Deliveries into the two South Korean LME warehouses snapped a three-week string of net declines in the total LME copper stock figure," said Deutsche Bank in a daily note.
"That development coupled with news of production re-starts at two major producers in Chile after resolutions to industrial action undermined support for copper," said Deutsche Bank.
MRX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
