to be hit by double whammy today, page-4

UBS: Much lower metal prices? Yes, for the day, copper is lower and so is the $A. Copper now $1.18 or $A1.71, still a good price.

However, OXR won't produce copper till March next year and much can happen before. We do know there will be a shortage varying from 300k tonnes to 700 k tonnes.

As to the gold price, yes, it is down to $383 but still a good price at $A556. Cost of production is low at $US135/ounce.

Also, OXR is to supply 40,000 ounces of gold at $US400 from July 1, this year.

Having said that, many investors realize that this year is one of expenditure (building of the massive Sepon Copper project) so as to benefit from the to be ramped up production of copper and gold next year.

I believe that share prices would have taken that into account.

Is UBS suggesting that profits will be down by 8%? Compared with what? The upgrading from 165,000 tonnes gold to 230,000 tonnes will take place this year.

There could of course be more depreciation.

I am waiting for a report from ABN-AMRO

Gerry