....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.
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
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