Lundin says hold Cardero

2008-11-19 21:01 ET - In the News

Brien Lundin, in the November, 2008, edition of the Gold Newsletter, says hold Cardero Resource Corp., recently $1.31. Mr. Lundin said buy Cardero three times between December, 2004, and June, 2008, at prices ranging from $1.15 to $4. Assuming a $1,000 investment for each of the three buys, the $3,000 investment is now worth $1,900. The newsletter editor says Cardero has made significant progress at its Pampa de Pongo iron deposit in Peru over the last few months. Earlier this year, it conducted a 1,400-tonne run-of-mine sample through its pilot plant to confirm the amenability of the iron ore to magnetic separation. Results verified the iron ore pellets exceed industry standards for high-quality "direct reduced" or "hot briquette" iron feed. Mr. Lundin says these are premium products that usually attract prices that are 10 per cent higher than "blast furnace" grade pellets. Initial costs of the 24-year mine life are about $3.3-billion according to the stock market guru, but he says that Cardero will find someone else to pay for it. Mr. Lundin praises Cardero's management team and says Pampa de Pongo offers a lot of value. Although the stock will have problems over the next few months, the editor says it will be far higher in the future.