Copper companies are moving higher these days, more fund managers are buying in on the Inflation picking up and IMF report that China will survive "The Downturn to 7.5% Growth". I will have to adjust my numbers for Lumina Copper valuation now.
Please do not get very excited and read my legal disclaimer carefully, but as we have seen before this kind of price action in Lumina Copper case can tell us that something is going on. It can be the simple arbitrage play by the big guns, but the market cap of Lumina copper is already higher than the calculated at the announced acquisition price by First Quantum Minerals. The announced price was CAD 470 million. Lumina Copper has 46,978,235 Fully Diluted shares, price at CAD10.55 gives us already CAD 496 million! I do not think that it is bet on rising Copper price or rising First Quantum share price - you can more safely buy the First Quantum shares in that case. Somebody thinks that Taca Taca can be worth more...
Let's see what the next couple of weeks will bring us here. I will repost my yesterday's entry and you will appreciate later why it is important. Now Los Azules Copper will be making its rounds in the industry.
All slides in this part of the post are from McEwen Mining presentations.
End of slides from McEwen Mining presentations.
As we have discussed before, we have really Hot Winter In Argentina for mining M&A. Now Frik Els confirms "China's Top Gold Firm Talking to Barrick Gold, Has Friedland "hotline":
Investments in "politically stable" countries in Latin America and Africa are also being considered Song said. Mining.com"
"Frik Els provides a very good insight into the Chinese deal culture and mining M&A particularly. Las Bambas deal is not only the very good indicator of the turning mining cycle, but also provides guidance for the smaller companies in China to go on The Hunt For Copper and other commodities. You can witness this approach in our particular case of Strategic Commodities with International Lithium and Ganfeng Lithium as well. Read more."