Canadian Mining Journal

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COPPER HEDGING: Taseko, Lundin lock in prices

VANCOUVER - Two Canadian copper producers have announced copper hedging programs in efforts to secure cash flow.


VANCOUVER — Two Canadian copper producers have announced copper hedging programs in efforts to secure cash flow.

 

Taseko Mines, operator of the Gibraltar copper-molybdenum mine at McLeese Lake, BC, has hedged 50% of planned copper production to the end of 2009. Approximately 30 million lb of copper has been hedged with a price range of US$1.88 – US$2.36 per pound.

 

Under the program, Taseko will receive the prevailing market copper price while it is within the specified price range. Should the market price be outside the price range, Taseko will receive a minimum of US$1.88 and a maximum of US$2.36 for the hedged copper. The remaining estimated 50% of production is unhedged.

 

Likewise, Lundin Mining has struck multiple deals for 40,000 tonnes of copper spread evenly over the next 12 months. The weighted average floor price is US$1.87 per pound copper and the weighted average ceiling is US$2.39. Lundin operates base metal mines in Sweden, Spain and Portugal, and has an approximate 25% interest in the Tenke Fungurume project in the Democratic Republic of the Congo.

 

More information is available at the companies’ websites, www.TasekoMines.com and www.LundinMining.com.


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