I know, it’s an old story but it’s an old story because it’s a true story: Right company. Right place. Right time.
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Once AGAIN StockGuru’s China Stocks Show Good Momentum.
The severe snow storm in southern China may have put the country in a standstill but our China stocks keep on trucking! MYST has some great film production — that is bound to get some use while the population finds itself snowed in!
* EBIG Up over Five Percent today following closing up nearly Four Percent Yesterday
* MYST Is Up Over Five Percent Just This Morning
Copper King (OTC: CPRK) is also the beneficiary of international news.
I know that in mining costs, containment is crucial and I always look not only at a company’s reserves but at its cost of production and potential production disruptions. Today I want to look at why Copper King has some very serious advantages.
A labor force not prone to strike is essential.
But one thing we take for granted in the United States — electricity — power — is crucial in mining.
Having a mine located in the United States where labor is assured and power is consistent gives Copper King a tremendous advantage.
My research department assures me the world demand for copper will only increase. It is used in air conditioners and electrical appliances. As the middle class expands in China, India, Russia and Brazil more copper is needed. Over 14 million metric tons of copper is mined annually around the world, with five countries representing almost 65% of total world production. The Asian region accounts for 50% of world copper usage.
I think it’s obvious Copper King has found a place in a growth industry and their geographical location, the United States, gives them a strong advantage.
One reason the price of copper will increase is that Africa has longterm power issues and it may take five to seven years to correct these issues.
South Africa’s power problems are structural, with a state utility that hasn’t kept pace with growing demand in a booming economy. Power shortages are currently affecting more than 7% of global capacity, UBS said in a note earlier this week. But there are no power shortages in the United States.
Africa is the new growth region for the copper market and is expected to add some 800,000 to 1 million tons over the next two years to global production, said Merrill Lynch.
But mining officials in Zambia, the fourth largest producer of the metal used in electrical wiring and tubes, have warned that its 2008 copper output could be hurt by power rationing and a halt in operations at some mines.
Already Konkola Copper Mines – which has a capacity of 200,000 tons per annum and is the country’s largest producer – last week had to shut production after a nationwide power cut damaged equipment and flooded mining shafts.
New copper projects in Zambia and in Democratic Republic of Congo such as Freeport McMoRan’s Tenke Fungurume project will add to the competition for scarce power supplies.
“We’re forecasting a total of 830,000 tons of refined copper production in Africa, or 4.3% of forecast global supply, for 2008, an increase of 12% year-on-year, and substantially underpinning global growth,” said commodity analyst Tom Price at Merrill Lynch. “These power cuts threaten this outlook.”
There is no shortage of reasons why I think CPRK delivers an incredible one – two punch.
Source:
Copper King Mining Corp.
1818 West Francis Avenue
Suite 190
Spokane, WA 99205
Phone: (509) 466-3413
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential,” or “continue,” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.