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TORONTO (miningweekly.com) – Vancouver-based Lundin Mining has fixed floor and maximum prices for about 40 000 t of copper, the firm announced on Monday.
The weighted average floor price for the hedged metal is $1,87/lb and the weighted average ceiling is $2,39/lb of copper, and the hedged metal is spread evenly over the next 12 months.
The multiple option collar arrangements were entered into over the last five business days, and no cash premiums were paid or received under the net zero cost structures, Lundin said.
Copper prices, which fell sharply last year, as slowing demand and economic pessimism weighed on the metal, have shown signs of recovery in recent weeks, and hit a six-month high last week, boosted by better-than-expected Chinese demand.
However, the metal slid again on Monday, as negative economic data and investor risk aversion weighed on prices.
Copper for May delivery fell 4,1% on Monday, to $2,1035/lb on the New York Mercantile Exchange's Comex division.
Lundin produces copper from its Neves-Corvo mine, in Portugal, and the Aguablanca mine, in Spain.
It also owns a 24,75% stake in Freeport-McMoRan Copper & Gold's Tenke Fungurume copper/cobalt project, in the Democratic Republic of Congo, which recently produced its first copper concentrate.
Excluding output from Tenke, Lundin said earlier this year it expects to produce 90 000 t of copper in 2009.
