A faithful CMJ reader, who did not give permission to use his name, has added the following comment to the discussion of the proposed HudBay-Lundin deal:
“Interesting view, but you’ve got some facts incorrect that are misleading.
“Neither Aljustrel (on care and maintenance) or Storliden (exhausted) are producing mines right now.
“Nowhere is it stated how much of HudBay Jaguar Financial owns, only that shareholders owning no less than 5% of HudBay have ordered a meeting.
“I would agree with you that the new company would be in a great position if the market peaks again in a few years, if the DRC [Democratic Republic of Congo] avoids civil war and grants the necessary licenses for the Tenke project. From what I’ve read, opinion is that it’s gonna [sic] be pretty rough through 2010 and I’m not really sure that deserves paying over a 100% premium for Lundin, who may be on the verge of insolvency. Maybe market value or a small premium wouldn’t have resulted in a 40% drop in HudBay’s share price on the announcement.”