copper futures, page-11

SFH,

I saw the Goldmans story.

I've got to say I was happy to see it as well. There has been a little too much heat in the copper sector over the past 2 months. The chinese are quite cunning in stockpiling as well, and yes this goes on every year.

The Chinese trying to put the brakes on there economy over the past year has been welcomed by all. They dont wish to see a bubble in their property mkt, and neither do we.

The benefits of seeing a little heat come out of the copper sector now is a more balanced mkt in 18-24 mths. Thats when we'll be hopefully coming on line.

Also, the last thing Cdu want to see is marginal deposits getting and mined because the copper price has moved to $5 a pound.

You see we have a very low cost mine to be. Dont forget that. The benefits of an open pit and shallow near surface deposit guarantees this.

The Cu price rise we've witnessed, although impressive looking isn't out of hand. Remember it is in US dollars, and the rise when converting to Aussie dollars looks much more sustainable.

$4.20 a pound while the Aussie is at $1.05 US is the same as $3.60 a pound when the Aussie was at 90c US. If the chinese economy were to slow we would fall under parity with the US very quickly, which would cushion any falls in the copper price.

Cheers

mm