RE: Is there any hope?bildit;
excellent analysis.
Couple of thoughts:
1. the hedge cost is huge and increases with every cent of copper increase (cost is average month copper - roughly $1.85), multiplied by hedge volume. Right now costing CCU about $2 million per month in hedge loss. The sooner they get production higher, the more they can cover the hedge (its actually just a cash settlement)
2. Fixed costs at the mine are basically that - fixed. Again variable costs are small compared to fixed costs, so that any extra pound of copper produced runs to the bottom line.
so there is lots of potential, but need to remove some of the obstacles and they have to tell more truthful stories that are easier to understand - like monthly production numbers. How many of you have called the company to complain? I have on a couple of occasions and it should also be brought up at the annual meeting if anyone is going.