burgess on copper

Hi Folks,

In the interests of balance and perspective through these jittery times I thought some might find an interview of Terry Burgess by the Business Spectator worthwhile. He has some quite considered things to say about copper, on which he is bullish (& I don't think he"ll be making any one poor with his views). Much of what he says wrt his company's position would equally apply to PNA. I've also copied a short extract below:

http://www.businessspectator.com.au/bs.nsf/Article/KGB-pd20100204-2CBNE?OpenDocument&src=is

"SB: Is there much potential supply sitting on the sidelines or was it wiped out because of the financial crisis?

TB: I think that what happened is that the copper price got very high in 2008 and the early parts of 2009 and every operation was putting out as much copper as they could and production was at a maximum and I think that the easy copper and the copper that you could quickly produce that really has been taken out of the equation. Companies are still producing as much as they can at the moment, therefore any limitation in production instantly looks as though there is going to be a supply shortage. So I don?t think there?s going to be a glut of copper on the market from production. And, in fact, to the contrary. I think that with the difficulty that people have, investing in large copper projects or large projects at all, where you might have to spend $5-6 billion to bring a project into being, will mean that supply will be delayed. And then, on top of that, exploration hasn?t been done particularly consistently in the past and, therefore, there are no new discoveries of copper. So, I think there will be a supply shortage."

EL