copper price, page-22

Folks,

Some of you are still in de nile wrt poc, but take a look at zinc, nickel and now oil. This is a VERY serious commodities reversal, and whilst it is possible we are seeing the bottom in copper, experience across the commodities suggests the poc will go way below top quartile cash costs, that producers must be squeezed very hard before closing. They are playing bluff with each hoping others fold first, aiding a price recovery. Whilst PNA appears to be well down the cost curve they hold a very weak hand.

They need to act quickly, and I would hope they are looking at all options including the likes of selling up to 35% of the project to the Chinese, Indians or Japanese, perhaps in return for refinancing. Then they can get on with the early stage preparation for other projects etc.

Just watching atm,
EL