Moly chart

So why hasn't moly done the same thing as it did when copper was last at $4/lb?

Too much bullshit in the copper pit and not enough in the moly market?

More Peru mining production stats

So I put up the post just an hour ago that clearly shows how Peru's exports are riding their luck and immediately (and I mean within half an hour) the "you're just cherrypicking" mail arrives from one the sillypeople that is ignorant to stick up for the corruptos running Peru. So let's first point out this:

Ahhhh I feel better now. Let's plough straight on with the monthly metals production figures for Peru in the period 2006 to date. Starting with copper, the only one that has made some sort of significant move (and I betcha that you can guess when the Cerro Verde expansion came online):

Next gold:

Here's silver:

Here's zinc:

Here's lead:

Here's iron ore:

Here's tin

Here's molybdenum:

All data from Peru's Ministry of Energy and Mining. You see that amazing production expansion? You don't? Oh wow, there's one for owly to comment upon:

Moly News

It semi-affects Latam so it gets in. This PR today told the world that Sprott Moly Fund (MLY.to) is going to distribute assets to shareholders due to the ongoing malaise in the moly market. Fair enough, so let's see how that has affected the market today. Here is MLY.to compared to its four largest equity holdings, Thompson Creek (TCM.to), Quadra (QUA.to), Mercator (ML.to) and Inca Pacific (IPR.v)

Or in other words, "dump the shares, there's cash being given away over there, boyz."

Why PCU is in the long-term portfolio

I don't really talk about the long-term portfolio much, basically because it never changes and to paraphrase Warren Buffett the favoured holding period is forever. It's comprised of gold bullion, silver bullion and a few stocks, with the biggest stock holding as Southern Copper (PCU).

Why PCU? This is why:

MEXICO CITY, Oct 31 (Reuters) - Peruvian miner Southern Copper, one of the world's largest copper producers, announced on Friday it will pay shareholders a dividend of $0.34 per share on Dec. 5.

The company (PCU.N: Quote, Profile, Research), which is a unit of Mexican miner Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research), also said etc etc yada yada continues here

PCU just keeps paying me money, that's why. Here's a chart that summarizes the cash dividends of the last five years.

That's U$7.38 in total (if you include the 34c payment to come in December 2008). I took position in the stock at a split adjusted $8 and bits thus we're getting close to that magic net zero price. So even though PCU has dropped a mountain from its highs of 2007 and 2008 ....

...I'm still a very happy holder overall. I think it was Livermore who used to say buy right and sit tight. A long-term portfolio is a different mindset. It has to be like that. DYODD, dude.

Market craziness; example du jour

Let's choose Inca Pacific (IPR.v) to highlight this time. Let's not worry about the Magistral project, or its potential asset value, or that according to solid documentation (namely a 43-101 compliant final bankable feasibility study) the project is viable with copper at $1.50/lb (something that has been backed up by independent due diligence, too). Let's not even remind ourselves that thanks to Moly credits Magistral will produce copper at an estimated U$0.28/lb over its mine life. None of that. Just this:

Shares out: 56.6m
Current Share Price: C$0.18
Current Market Cap: C$10.2m
Cash at Bank (in C$): C$27.6m

Yes, that reads right. IPR.v has $17m more cash in its bank accounts than the company is worth, according to the market. Well that makes sense, doesn't it? Here's a link to the company website.

Inca Pacific (IPR.v): The junior miners fight back

Today I received a mail from Inca Pacific (IPR.v) that had a PDF overview of the company and its very nice Peru copper/moly project attached. The email and the PDF pointed out just how far the company has sold off and how ridiculous the current share price is compared to the facts about the company (which include the minor detail that even cash at bank is more than its current PPS...yes, it's gone that stupidly cheap).

I've always liked this company, and even visited its Magistral project site about a year ago (and was suitably impressed). So I'm pleased to see the "little guys" fighting back against this ridiculous market and getting back on the honest to goodness "look we're cheap" promotion trail. Here's a link to download the PDF overview of the company I was sent. It's only two pages long and downloads quickly, but it is packed with information that we can all understand and appreciate, and outlines the strong management team, the project and the current position of the company on the exploration and mine construction track.

Here's the link again, so there's no excuse not to download your copy. You'll be glad you did one day. DYODD dude, and that DD starts right here.

disclosure: none