Liberty Star Uranium and Metals Corp (LBSR)

[funmaxus]

Two scenarios:
http://www.libertystaruranium.com/www
LBSU has mining rights for copper, gold, moly, uranium, silver, vanadium, cobalt, nickel, zinc, and lead. Presently, precious metals http://www.kitco.com/market/ with gold in particular, seem to have an inverse relationship to the strength of the US dollar. All other metals, http://www.infomine.com/investment/metalprices/ have a direct relationship to global macroeconomic conditions. A question that needs to be raised for LBSU is what is the break even point for each of the aforementioned metals, based on the spot price, and financing terms?
The answer to the question creates two scenarios:
1. A low spot price and poor financing terms create an unfavorable condition to expand operations, and therefore dilution.
2. A higher spot price and better financing terms create a favorable condition to expand operations, resulting in no dilution.
Which scenario is correct, will primarily be determined by which of the aforementioned metals is the easiest to extract, and offer the highest profit per ton mined, based upon spot price and financing terms.
For now, I find that LBSU is still an attractive buy based on the properties and minerals, and as a hedge continue to buy more in the event that the metal spot price goes up, creating a favorable environment to expand operations. However, my buying of LBSU is incremental, in the event that the spot price continues to be low and the credit market creates unfavorable lending conditions and thus dilution.
Which scenario will be correct is anyone’s guess. What I do know is that metals have been severely beaten down along with all mining stock companies around the world. While it may seem scary and crazy to invest in a mining company of any size right now, the current macroeconomic conditions will reverse at some point. Timing is everything.
IMO