I have just listened to an interview of the president of Freeport-McMoRan. He said that they were the lowest cost producer in the world (on a large production). This got me thinking. In Freeports 03 annual results, using the co-product method, they had CU costs per pound of US$0.37. This included, $0.26 site production and delivery, treament charges of $0.10 and royalty on metals at $0.01. Using the by-product method, the gold price covers all of their production costs gives them a US$0.02 credit per pound. This information is at: http://www.fcx.com/
With stage II projected production costs of around US$0.35 a pound, Anvil is truely a world class asset. All we need is a few extra biilion pounds of reserves!!!
