Bougainville Copper Emerging From The Ashes
Bougainville Copper Emerging from the Ashes
The stock markets all over the world were extremely down on Monday while the stocks of Bougainville Copper (BCL) impressed by soaring more than 8 percent at the Frankfurt (Germany) stock exchange.
Background: Swen Lorenz, a well-known European analyst, had surprised the investor's public with a detailed in-depth-report (http://undervalued-shares.com) on the Rio-Tinto subsidiary that, until now, remained closed for nearly 20 years due to severe local unrest in the concerned Panguna district of the tropical island Bougainville (Papua New Guinea).
The so-called Panguna mine and seven other leases are owned by BCL (Rio Tinto 53.8%) and is supposed to be re-opened within the next three years after enduring intensive negotiations.
The Andorra based President of the European Shareholders of Bougainville Copper (ESBC), Mr. Axel G. Sturm, pointed out that Mr. Lorenz' analyses are very correct: "BCL is like a Phoenix reborn from the ashes!
The fair value of BCL shares is round about 30 AU$ once the mining is producing again." The ESBC-members expect the BCL shares rising up to five AU$ in a first step within the next six months. And Swen Lorenz compares BCL with Katanga Mining Limited in his report. Those shares rose in Toronto from 4 CA$ in April 2006 to 26 CA$ in August 2007.