My guess about Zaruma PPS
My guess is that this stock (70% of my actual portfolio) will stay between 0.16 and 0.2 CAD during the next months. Reason is that this happens many times if an explorer is going into production status.
There will be much more drilling news about the extention of the Luz del Cobre area to extend the mine lifetime.
Additionally we will get first results of Trion area, where the first holes are drilled.
Starting in January we will have the first visible preparations of the mining area. All is outsourced to a very experienced company M4, which is controlled by an experienced senior management team of Zaruma.
When these steps are going well and investors can see the positive developement of the mine, we can expect first institutional investors coming into our stock. This should be middle of the year 2008.
Assuming that the copper future will increase that may have a positive impact as well at that time.
Zaruma need to focus on the production in this step and to be in timeline with the plan. Very important to get all the additional payments from Glencore.
From my DD of Glencore I could find many successful projects from them. As a result of that DD I could see only successful projects in which Glencore invested money.
Calculating a 5 year minelife and setting a 3 USD copper future, we should goto 0.50 CAD middle of this year and step up to 0.80 CAD or higher until end of 2008 nearing the production of the first cathode.
This is the company I did the longest DD of my life, I discussed it with many many people and I have a lot of friends with me who invested and will invest more during the next upcoming months.
In total all these friends and me hold more than 10 million shares of this stock plus warrants.
Until today the newsletters did not notice Zaruma as an important opportunity for investments. That may change in 2008.
But if that happens it maybe that I will trade parts of my shares because I dont like this pumping and IMO it always comes back. only a question of time.
Hope that I could give some ideas...
Problem in US is that Zaruma is not interested in US market, because they report to TSX already and the CEO does not like to have more complicated reportings in US standards.
So it is hard to buyin for the US investors as the spread in US often is too big in Zaruma here in US. And Zaruma looks like a penny stock with no rules. But that is totally wrong.
Please have a look at Zaruma webpages at www.zaruma.com
Happy new year and a successful 2008 for you all
