End of the day, pending resolution of the ongoing full court press on ETG by our JV partners, what we really need is for the long term trend in copper and gold prices to turn back up?

Interesting that the five year price performance, and shorter term price performance of both copper and gold is so close - up just around 35% in five years, and both have slipped off 8 - 10 % in the last six months. The US dollar negative correlation attached to interest rate rises and relative attractiveness of US denominated bonds holding the dollar strong has hurt our little venture’s upside valuations. It won’t stay like that forever!

The result of the coincidence of rate raises by central banks (pressuring gold) and the perception of probability of a resultant recession coming next year (pressuring copper), and dollar strength all conspiring to keep a lid on mining stocks?

As disappointing as interim setbacks may be, the long chart trends driven by copper scarcity in the face of global carbon-reduction demands, and the continuing longer term trend of migration and urbanization in the mass population nations of Asia and Africa (for copper upward price pressure), and the long, long deterioration of the financial health of the G-20 balance sheets and currency stability for gold (yeah I know we have all heard the cry wolf story for 30 years about rising deficit and debt loads). There will be a reckoning some day. I need to put on my long white robes and find that little sign I hold saying “The End is Nigh”.

In the meantime it’s a fool’s paradise out there?

FMCDH!!!

No lowballs, I know what we’ve got!

cg