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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (471)	11/3/2001 3:25:59 AM
From: TheBusDriver	Respond to of 39344

Thanks Steve. Surely that is not the only reason. I thought Kodak had "hedged" their supplies for a whole year? wayne

To: Stephen O who wrote (471)	11/8/2001 12:25:36 PM
From: russwinter	Read Replies (1) \| Respond to of 39344

Base metal industry collapse accelerating: Infomine: "Grupo Mexico has said it is unable to make a US$84 million pre-payment on a revolving credit that matures on November 10, 2002, according to Reuters. The credit was taken out in 1999 to help finance the company's $2.25 billion purchase of Asarco. The company said that its financial problems are the result of slumping commodity prices and demand, particularly copper. Grupo Mexico has requested a meeting with it creditors to "negotiate the necessary adjustments to the said agreement, in order to redress the situation." Last month, the company announced that third quarter sales were down 27% from the same period last year. Grupo Mexico is the world's third largest copper producer." "BHP Billiton will hold two teleconferences, one today and another tomorrow, to discuss the decision to reduce copper production from the Escondida and Tintaya mines in South America. The company will reduce copper production by 170,000 tonnes per year in total; 80,000 tonnes per year from Escondida, Chile and 90,000 tonnes per year from Tintaya, Peru. Major copper producers are cutting production given the oversupply in metal markets and a weakening global demand for the metal." "Copper miners are readjusting their 2002 budgets based on expectations the metal will average US$0.65/lb next year, according to Diego Hernandez, president of Chile's Mining Council which groups the country's main mining companies, reports BNamericas.com. The companies merged in June. War, global economic uncertainty and a sub-60 cent spot price this week have meant previous budgets based on 80 cents-plus copper have been thrown out of the window. Some commentators say the red metal is now trading in real terms below the lowest price it reached during the darkest days of the Great Depression in the 1930s. Companies are already suffering. Management of Chile's third-largest copper mine, 430,000 tpy Collahuasi, are now talking about delaying a US$600 million expansion. Decision time is weeks away."