Magnum - the white knight - has supported their interests in CCU at minimal costs and ensured CCU solvency for the time being. Manager has been moved on and hopes are that shareholders will take over rights issue.
A little bemused at the strength of posts encouraging all to participate in the rights issue. Take care.
Markets have accepted the inevitability of deflation (as opposed to inflation) and that QE's are of insignificant affect and a declining "tool" in monitory management. Price of PM's have been shaken out and resource stocks punished - with small companies almost sidelined.
Emphasis is on the ball mill being completed by CCU. Remember however that problems have been encountered in various stages of processing the ore and perhaps "bottle necks" among other things are yet to be rectified. The ball mill is no magic bullet and benefits may disappoint.
Those who have a mind set on the hope or anticipation of strong resurgence in price of PM's are to be disappointed. In the next year or two the possibility of a substantial fall in price of silver should not be disregarded. CCU share price is unlikely to get anywhere near past prices or close to price most have bought in at.
There is a reasonable possibility that CCU share price will languish and move to single figures. This suggestion may be vigorously challenged! Perhaps correctly in time. But times are not good for small mining companies and market is suggesting worse to come.
Price of silver is not based on industrial demand. Supply is more than adequate. DYOR! Speculative buying and hoarding is holding silver price at present levels. People have been guided into purchasing silver and the herd is charging. Should the herd turn and run in the opposite direction (unloading holdings) the result will not be good and bye-bye CCU. Sell in May and go away?
Am out of CCU and although there may be trading possibilities - I am not a trader - I intend to stay out.
DISCLAIMER! Remember this post is much a figment of my imagination and your guess is as good as anyone's.
Best wishes to all,
Vidi
CCU Price at posting:
13.0¢ Sentiment: None Disclosure: Not Held
