Southern Copper (PCU)

PCU does not control the price of Copper in the market, which could pose problems for the company if the market price go down. In October 2008, The CEO Oscar Gonzalez Rocha said, "Unfortunately prices (for copper) have dropped considerably, from U$3.20/lb to U$2.70/lb. This will definitely affect us because although this only started at the beginning of September and we don't know how long it will last, income will diminsh due to the lower prices." He then mentioned that cash cost was around $1/lb at present, the rise due to fuel and steel costs. Gonzalez said, "Up to now we believe our projects are feasible; if copper was priced at $1/lb they would not be feasible."

President and CEO of Southern Copper (PCU), Oscar Gonzalez Rocha, talks about the state of play in the company and the copper sector.

"We think that due to the crisis our projects could move foward a little slower, but at the end of the day we hope to execute them."

"We do not anticipate the need for credit, as now the situation is very diffuclt due to the US problems, and we can develop the project from our income cash flow....but if it is necessary, togher with the board of diretcors we will see if we can take a little away from the dividend pool to complete the projects if it's difficult to get credit lines." Gonzalez then mentioned that the Tia Maria project (120ktpa Cu) is due online in 2010.