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barry_1
Super Contributor
....i've just read that the worlds largest producer,(namely BHP) of copper in South America will produce 30% less this year as they are refurbishing their copper works....Might mean something extra for PAM and MTX....OMO.
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4 REPLIES 4
Not applicable
Copper definitely seems to be the mineral of the month at the moment. Barry, I was going through MTX's June 08 finals, and I see that they imply that 2000tpm copper was hedged at USD 7k per ton until June 09. I mean, that is basically their entire production hedged? 200 day EMA for copper is around USD 4,500, so they should not have been affected by the downturn - nor the recent price increases, which is still below the hedge average. In fact, worse than that, is that the hedge contract expires - meaning they will now have to settle for less. I can't find any more details about hte hedge though
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theyoungster
Super Contributor
most shares in the sector trade at a premium relative to its NAV, MTX below NAV with demand for copper rising, what does everyone see that i dont?
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barry_1
Super Contributor
Thanks for every ones input,although i hold MTX i do not know a great deal about them,now i understand better.
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Not applicable
Damn Barry, I was hoping you did know more about them, because I am trying to understand their hedge situation. Their production is mostly hedged (and nicely too!) but this expires in July, so I don't know what hte cash flow situation is likely to look like in the near future. I also have to assume that most of this is known and priced in, put given the recent rally on a copper price that is irrelevant, given the hedge, I don't really know. The other big issue, is that they still need to raise about R960m, but I don't understand why, and whether this is still on the table
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