Where to begin...
I like Rick Rule, he's fun to listen to, I like his logical thought process and how he's able to ellegantly verbalise it...
BUT
Let's face it Rick is busy having meetings, doing interviews and running Sprott US and he's not the one doing the stock picking. They have many junior analysts doing just that and they are told to skip through hundreds of companies and jump to: Grade, NPV and IRR
So in our case we are simply overlooked and so are the most important details.
(BTW, they should be looking at our NSR...I'll let you guys figure that one out.)
Rick is putting us in a basket with the Donlins and Pebbles of the world....
Is he aware of the Teck agreement ? Does he know the details.... insider holdings, port, power, potential, environmental impact, 1st nation and political relationship ?
First and foremost, CUU is about OWNERSHIP.
CUU has accomplished something and it forces Teck to act.
20% 1X expenditures
40% 3X expenditures (not 2)
75% 4X expenditures + financing to production
Secondly, this is about Securing the Resource today for tomorrow.
What cycle was Quellaveco part of when Mitsubishi took 18% for 900 million ?
What cycle is Cobre Panama part of ?
Read this: http://www.vette350.com/2013/03/all-you-need-to-know-about-copper-is-in.html
Yes Rick can speak of cycles...but what happens when the cycle has arrived....when it's time to produce ? Then the majors start building the mines, getting permits and juniors start getting financing for exploration ???
With Capex only going up...is it not cheaper to start building today vs in 10 years when it's actually time to produce.
It takes 10+ years from exploration to production. Today juniors are being starved for money (it started in 2009) and no discoveries are being made and it'll only get worst. This will create a major major supply gap on top of the one we aready have. They aren't worried about that today....but just wait.
So let the cycle come, Teck knows it. But first Teck must deal with ownership today. Then they can do whatever they want whenever they want.
And when the cycle arrives the deposits will need to be ready.
Schaft Creek is in a safe jurisdiction, has no environmental issues and EA soon, has a port, has power, has large mine life and potential and is the perfect replacement for Highland Valley (location, equipment and jobs).
Oh and BTW I was at the show, went to the Teck booth and they damn well know what Schaft Creek is, you just need to talk to ask the right questions to the right people: Alex Christopher, Martin Lapointe..
I liked the body language.
