Monday, December 3, 2012

Copper Fox - No Teasers

I was expecting a teaser this week but it didn't come. So perhaps next week? But knowing these guys, we may not get one at all. A lot of companies would be proud to tell the world about what they have but CUU has never done that. It's like they are not even aware that they have a share price. I know I've talked about this a number of times. Our last word by NR called this a Historical Milestone soon to come and here we are in Dec! Empty handed. Again. With the looming holidays it's looking like another delay is going to come to pass. The volume today shows what the market thinks about the possibility of the BFS.

I am mildly surprised there's not more selling. It would make sense for people to draw off a bit in anticipation of meeting their months ends and the holiday expenses.

There was quite a mixed bag on the global markets this last week and this week we are starting off with more of the same. This article sums it up   Are we done discounting? No, I don't think so. I think it's going to get a lot worse. There have not been any signs that the USA can head off the fiscal cliff. Sure they pay lip service to us, the public but deep down inside, they all know trouble is brewing.

Back here at home things don't look so rosy either. The bright spots are Alberta and BC as Sask. is cooling off. And so, investors in CUU are asking why the company isn't hastening the BFS and rightly so. Then reality sets in. Teck calls the shots now. It's up to them to accept the BFS. The last work from CUU was that they were not done the BFS. They told us in a NR that the mine plan component was done and reviews were under way back in Sept 25. From then on we have not heard a word. When you call them you are told they are on the final strokes.

We don't buy it. many think Teck is studying the document. I think they are studying a draft and reviewing the data they downloaded against the draft but there is no finalized BFS. CUU said we would get the short form as soon as the BFS was done. Since we don't have it we can assume it's not done. So what's left to do? Sign it? Probably. But, with each week it's delayed we get closer to the uncertainty the "fiscal cliff" represents. One question that has been raised is "are they doing this on purpose?" CUU would not but Teck certainly would. They would do what ever they can to drive the price down. Hey, it's just business.

By not making the BFS public CUU appears to think we can't get a better deal than what Teck might offer. I bet that behind the scenes Elmer is working on a multi player deal that would back stop Schaft Creek from being sold for nothing. You only have to look at the price for a pound of copper at Lumina's 30 billion pound deposit. Sure they could face an uphill battle with taxation and other uncertainties but soon they will be a penny a pound. At that point someone will buy them or they will be holding it for a very very long time. As investor attention shifts away they will get cheaper and cheaper. At some point they will accept a pittance for it instead of nothing at all. They should have tried harder earlier.

In light of what's happening in Africa and other non-developed nation you'd expect so appreciation of value in safe zones. This is not happening. So CUU also blew their best chances to maximize the value. Despite the gains in grade and increases in pounds we have a different world today. It may turn out that last year was the best time to sell.

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