We hold a thousand shares purchased for 1.31 just before the price of Copper began to collapse. Although my source for the recommendation has reaffirmed his enthusiasm for the stock (see below), the very bad timing of it has worked against us. As a result, and because I trust my technical tools far more than the opinion of any analyst, I will no longer publish “tips,” hot or otherwise, without a compelling Hidden Pivot rationale for getting us aboard. I don’t doubt that Baja offers good value, just as my source says, but even “great values” can get trashed if investors are in the wrong mood. Be that as it may, here are a few encouraging words excerpted from an August 4 report on Baja from Haywood Securities:
“Annual production during the first 6 years of full production is expected to average 125 Mlb of copper, 3.7 Mlb of cobalt, and 25,400 tonnes of zinc sulphate monohydrate (100% basis). Our model includes a life-of-mine average total copper cash cost of US$0.40/lb net of cobalt and zinc credits, which places the project within the lower half of the global copper cost curve.
“Baja’s portion of this production is 70%. Baja has less than 400 million shares fully diluted and the project a minimum mine life (albeit at somewhat lower grades) of 25 years.”
Adds my source: “I think that Haywood’s price targets are very conservative at current copper prices.”
Officially, we’ll continue to hold the stock. Please be aware, however, that, with the stock’s recent breakdown, the 30-minute chart is indicating more slippage to as low as 0.842 over the near term.