surda pricing not affected , page-9

Personally, I don't see a rise in Cu prices next year.

If anything, I see a further fall. This is what concerns me about the US$3700 threshold.

US in recession, with Europe going into one. The world, ex China comprising around 60% of demand for Cu., with China growth slowing.

This all implies not only demand falling for Cu, but more importantly prices backing off further: and I believe significantly.

Real copper prices during the 2001 recession fell to around US$2000/tonne.

We are currently at US$3965/tonne for three month delivery and the China slowdown has only just started, and we are at the front end of the slowdown in Europe and the US.

It's going to be a very difficult survival road for the company from here, with it not being cashflow positive now, and the likelihood of a renegotiation of the HCL sale price coming up: just my view.

Having the US$3700 information now, the fundamentals of the company have changed significantly.

BUSH