IKN

Take physic, pomp

Trading Post (cupriferous edition)

Freeport up 7.4% at $43.60 and Southern Copper (PCU) up 7.7% at $19.60. I covered my FCX short at the very first opportunity this morning, took the small loss and got the hell outta the way of this juggernaut. Copper breaking $2/lb in London this morning triggered a whole swathe of buys and there’s no point in shaking your fist and spluttering “bu… bu.. bu… but it’s not fair!” You take the loss. You say “I was wrong”. Period.

Amerigo Resources (ARG.to) up 1.7% at $0.305. This seems to me to be a great way to add copper exposure to your portfolio, if that’s what you want. This price is below that paid by Ross Beaty for his recent chunk, the company wrote down its share assets in LA.v and DNT.to in its year-end report (DNT.to significantly higher since then) and the cash injection from the Beaty-taken offering has given the company breathing room on its cash flows. With $2/lb copper it’s probably making a profit right here and right now, and it will definitely be making a profit by the end of the year with Cu at $2+. DYODD and be clear that it’s a high risk exposure of course, but it’s a producer at a discount to peers…and that ain’t a bad place. I don’t own but it’s on my shortlist right now.

Capella Resources (KPS.v) down 7.8% at $0.83 and volumes low. How sad.

Petaquilla Resources (PTQ.to) up 12.4% at $0.50 which looks sexy at first, but it’s not breaking out of its range at all even on stronger than usual volume. Shorters are unlikely to be tempted yet. Avoid this PoS like the veritable plague.

Fronteer (FRG) up 1.9% at U$2.19 and showing signs of life. I’m happy to say that at least one reader has followed me in on this stock and it happens to be somebody I highly respect as a stockpicker (sorry, naming no names). Volumes are low.

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