Cbew, I really hope we get north of $4/sh. I'm trying to see it, but am still having trouble coming up with a value that high, unless Teck gives us a lot of credit for inferred resources (and some indicated). Add what Teck has to buy CUU for to the capex, and we're talking a big price tag. I think the fundamentals are there, I think Teck stands to make a lot of money still given the 5-10 year forecast, I just wonder if they or another major are willing to shell out 1.7 billion before even spending a cent to get the mine going (capex). That makes CUU close to 5 billion just to build (1.7+3.25).
To my mind the numbers still don't warrant this kind of buyout, unless Teck knows something we don't (e.g. nice MIRA's or other info, but I'm really not sure what else there is to wow them, or how this could be kept under wraps with disclosure regs). Most mining engineers I talk to say the drills have to turn to bring the value, and that very little credit will be given for magnetic imaging and possible targets, no matter the advances the last few decades. Maybe we'll put that theory to the test - I hope so. Any major jumping into a medium size project like our is likely needing billions of upside beyond what's on paper, to sink billions in.
Still riding CUU right until the end, but seeing something more in the neighborhood of $2.75-3 if all goes well.
Cheers.
