On2. Thank you for the reply. Again, this is just my opinion ONLY so take it for what is BUT here are some questions/concerns/thoughts that I have:
1. The copper market is very competitive, its a commodity, supply vs.demand drives the price obviously. My question is, wouldn't a RIO/Freeport/Sterlite view CPRK as a competitor? Why would you want to help out the competition? Putting more product into the marketplace just dilutes the value? Granted, Rio and Freeport maybe a little heavy with some debt right now but I think Cash flow wise they are sitting OK and can weather the store. I am sure they have their eye on the BI daily. SLT, watch out for these boys, their hungry and have plenty of cash... I would not be suprised if these companies are sitting on a surplus waiting for the markets to come back. What happens if they all dump at the same time? Markets flooded, price drops, BOOM.....back to creating surplus again, solid cash reserves weathers you throw the storm again until the next uptick. Granted, this type of cycle has really never occured before, (at least not on a larege impactable scale), well because, the world economy has given us a nice growth curve over the past several decades and their has always been a demand for precious metals. i.e copper. IMO.
2, Concerning operational capacities, I would guess that the companies running these smelters vary their production schedules accordingly. It's not that they short on ore or resources, but for the simple fact, and like I mentioned above, supply vs. demand.
Like I have mentioned in previous posts, only so many kids that can play in the same sandbox together before everyone starts playing naughty...simple fact, it really does come down to economies of scale, both externally and internally...
Again, JMO
Subway-Jared :)
RISK? What is your tolerance level?????
AI
