Page 17 - pd248 April17 mag-web

Copper comeback continues

Copper is trading at significantly higher 3.000
prices than 12 months ago and the
value of the red metal appears likely to

remain strong for the foreseeable future. 2.800
Ongoing strike action and uncertainty

at the world’s largest copper mine, Es-

condida in Chile, has added some spice 2.600
to copper pricing a bit earlier than some

would have thought. USD/lb

“There is a definite view that a deficit 2.400
is on the way and that the copper price

is going up a bit further. Some guys are

talking it up significantly higher than this, 2.200

but that is not my view,” Aeris Resources

Ltd chief executive Andre Labuschagne

told Paydirt. 2.000

“Copper is looking at 3-4 years of much

better, returns than we had in the last 12 1.800
Mar16 Apr16 May16 Jul16 Aug16 Sep16 Oct16 Nov16 Dec16 Jan17 Feb17
months or two years, definitely. It might
pull back a little, we have seen it pull

back [recently] but I definitely don’t see it Spot prices for copper have risen sharply since October. SOURCE: Kitco

going back to the lows of 12 months ago.

“There are some of the big majors In the December quarter, Aeris pro- opportunities based on whether it is a

going through wage negotiations and duced 6,024t at C1 costs of $2.48/lb. good business decision or not,” he said.

strikes, and that tends to move the deficit Meanwhile it continues to deal with its – Mark Andrews
around, although the deficit might be a capital structure.

bit earlier than originally forecasted. It all “We are dealing with those prefer-

depends on how long it is going to take to ence shares and

get [production] back on track, but overall looking at ways to

the sentiment at conferences has been clean that up to get

very positive on copper.” a proper structure in

At the time of print, copper was trading place so we can get

at $US2.6/lb, with Aeris working towards proper valuations

FY2017 copper production of 25,000- in the market,” La-

26,000t from its underground operations buschagne said.

at Tritton. “From a growth

The company downgraded its FY2017 position we are ac-

production forecast in its last quarterly tively looking at var-

report due to delays in the start of stoping ious opportunities, if

at the new Murrawombie underground the right one comes

mine. around and there is

“The start of the Murrawombie under- enough support for

ground and the change of the mine plan it that is obviously

going from bottom up, basically has de- something we will

layed production out of Murrawombie by look at. But, our first

6-9 months,” Labuschange said. priority is to try and

“The original plan was to take some work on cleaning

stopes on the way down, so it was re- up the capital struc-

ally a change in the ture.”

mine plan resulting in a Once Aeris is in

delay in those tonnes, a position to take

so we are developing on more assets,

further down before Labuschangne

starting to mine back said he would

up. That said, although entertain options

the production was a outside of copper

bit disappointing, they and gold where

still managed to get the its main skill sets

cost well under control are.

and manage to hold the “Definitely we

position.” Andre Labuschagne will look at other

AUSTRALIA’S PAYDIRT APRIL 2017 PAGE 17