Bill Harris, CFAAur ResourcesAUR.TODON'T BUYSep 13, 2005
He's a big fan of copper and is trying to own it as cheaply as possible and owns Falconbridge (FAL.LV-T) instead. The trouble with a lot of the metals is there is no pure way to do it. Doesn't particularily like this company and it's had a good move. 2nd class assets.
Numbers were a little bit below expectations. Adding acquisitions. Extremely strong balance sheet. Feels it can trade back up in the mid-$20's. Could be a takeout.
It is facing the rapid decline in copper prices. You will probably see some element of earnings being reduced. Seems to be holding here reasonably well. If you’re reasonably optimistic, like he is, some of the metals are looking a little more interesting.
Paying a special dividend towards the end of the month. Outlook for copper is a little more guarded at this stage. If there is a re-acceleration of the economy, the stock can spring back to life and trade in the mid-$20's. Would take a little money off the table at that time.