Blythefan
Thanks for your comments. Aware that leaching starts pretty quickly (from memory their ore as about 60 days gets them the majority of the contained copper ) - my point was that the extra volumes of dirt being moved in excess of what is required to replace what has been leached will be having a drag on cashflow ( contractor will want 30 days - they won't get the cash from Glencore for some time after this ). Inventory build always hurts your cashflow.
Diesel & Sulfur prices coming off will help - power is from the grid so they have been lucky in that area for the last 12 months.
Hedging is always a hard one - the AUD hedge looked really good when AUD was pushing parity. I agree some put options in USD would have been prudent - though I can't recall seeing any other miners that bought puts at high prices. Much of their hedging was undertaken when they drew down the finance for Lady Annie - from memory they got about the 3 month LME price on average at the time.
Cheers
Baraka
CUO
copperco limited
