I wonder if this bit of DD is of interest to the thread. Forgive me if it's not.
From Goldcorp's results:
"Fourth quarter revenue slid 10% to $609-million, from $679,8-million in the year-prior period, mainly owing to lower realised silver and copper prices." (Emphasis mine, tyc)
Goldcorp's copper production comes from its 37% stake in Alumbrera, which share in 2008 amounted to 189,000 oz gold and 129,700,000 lbs of copper.... 686 lbs of copper for every oz of gold. By way of comparison, LOM production from Mt Milligan is expected to average 217,000 oz of gold and 88,000,000 lbs of copper.... only 400 lbs of copper for each oz of gold.
IMHO and FWIW .. Had Mt Milligan been in production, there would have been no similar reduction in revenue during the quarter. Higher C$ gold prices would have more than offset lower copper prices.
Possibly, in a recovery higher copper prices might offset a decline in the price of gold. A 25c increase in the copper price would offset a $100 reduction in the price of gold, maintaining MtM's gross revenue. |
