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First Quantum Minerals Ltd T.FM

Alternate Symbol(s):  FQVLF

First Quantum Minerals Ltd. is a Canada-based global copper company. The Company produces copper in the form of concentrate, cathode and anode and has inventories of nickel, gold and cobalt. It is engaged in the production of copper, nickel, gold and silver, and related activities including exploration and development. The Company's operating mines include Cobre Panama, Kansanshi, Sentinel, Cobre Las Cruces, Cayeli, Guelb Moghrein, Ravensthorpe and Pyhasalmi. Its development projects include Enterprise, Haquira, Taca Taca and La Granja. Its operating segments include Cobre Panama, Kansanshi, Trident and Ravensthorpe. The Cobre Panama project comprises a series of copper porphyry deposits with main deposits, such as Balboa, Botija, Colina and Valle Grande. The Trident segment includes the Sentinel copper mine and the Enterprise Nickel development project. Its Ravensthorpe Nickel Operation is an open pit mine and primary processing plant located in the southwest of Western Australia.


TSX:FM - Post by User

Bullboard Posts
Post by bond46on Mar 31, 2016 7:52am
181 Views
Post# 24714229

The copper $ paradox explained

The copper $ paradox explained
We all know that when the $ goes up all commodities go down and when $ goes down the price of commodities goes up. That is under normal supply-demand fundamentals. But what happens when there is no demand for the metals, say copper? The draw-down of inventory from the LME, gives the impression that there is demand for the metal. But it there? Not really. The Chinese traders are hoarding the metal, to re-sell it either when the demand goes high or, and this is the puzzle, if the US dollar goes up and The Rambimi , in relation to the dollar goes down. To give an example. If when the traders buy copper and pay in $ the exchange rate of the $/R is say 6.51 Rambibi to the $, if the dollar goes up then one needs more Rembibis to buy a dollar, say 6.55. When the dollar goes up and the Rambibi goes down the traders make money if they sell copper in the market in $ and exchange the dollar with more Rambibis at 6.55 instead at 6.51 to the $ when they bought the copper thus profiting the difference of 0.04 Rambibis to the dollar. This explains the distorted market when there is no supply -demand fundamentals and the speculators can play around with currency exchanges. And so, now the Chinese traders are selling into the market thus depressing the metal. And since the Chinese traders are drawing copper from the LME in order to resell it at a profit, we notice that while the dollar is going down, so is copper because the Chines are flooding the market with the metal. That is why it's important to keep an eye on the LME to see if inventories are going up or down, and that will give an indication where the copper market is headed.
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