Q: Are you bullish on copper over the next 3-5 years and by extension Amerigo Resources as an investment, or are there other copper plays that you prefer.
5i Research Answer:
We are mildly bullish on copper. The rally has been intense (another record today) and we do think some price consolidation would be healthy. ARG has done well and has good leverage to the metal. Its balance sheet (net cash now) is in much better shape than in prior cycles. It is a decent small cap for the sector, but riskier than the larger companies. We think it is fine, but do prefer the larger LUN and CS.