Copper - analysis Message Board

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Gold/Mining/Energy : Copper - analysis

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To: marcos who wrote (301)	4/30/2001 5:58:41 PM
From: Archie Meeties	Read Replies (2) of 2131

Aur hedged 62% of Cu production at $.87/lb (US) - a brilliant move if Cu stays dormant through the year. IF. -g- If it doesn't, I don't think that will hold the share price back too much. The hedges expire at the end of 2001, we're already 1/3 of the way there, and the market looks ahead almost that much. imn has the political risk of Turkey and some environmental risk. But tremendous leverage to Cu prices. +.10 Cu price = 0.27 increase in earnings. That's leverage! Unfortunately I was sleeping with the recent strike in Turkey. You snooze, you loose... (ahem) Quantum's chart has the feel of accumulation to me. But non copper (cobalt, acid, gold) revenues are currently > 1/3 of total revenue, will change this year more toward Cu. OTOH, Cobalt is also a industrial metal, whose prices should rebound if industrial activity has bottomed (that word getting a lot of wear). The Aircraft industry uses a big% of cobalt in superalloys. Cobalt also used in gas turbines for power generation (take look at GE's backlog). Do you follow any Cu explorers (non producers)?

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