Re: Slide Show

I thought the slide title "Copper Supply Surplus Estimate Declining" was very interesting. It shows how dramatically they expect Production in Chile to decline starting in 2016. Mind you, I have also read that Codelco wants to spend $billions to prevent this from happening. We will see if the Chile government gives Codelco the required Capex funds. I have a feeling that they will get some but not all the required funds. So production will drop but not as dramatically as shown in the slide.

We continue to run into this dilemma where it appears that in the short term of 1-2 years, there will be copper surpluses but afterwards there appear there will be short falls. The market is trying to anticipate the future - which is why the price keeps jumping around. It is reacting to various pieces of news. I have a feeling that once the inventories start rising (ok we have this one right - what's coming next?), the market will start looking further ahead and perhaps see the deficit. We see that with Nickel where inventories are rising but the price is rising as the market anticipates supply problems. Time will tell.

On the "Attractive Portfolio of Long-Life Assets & Resources", it would have been nice to see Schaft Creek listed as an (Advanced Project). I sure hope we hear that we hear something in September regarding the Engineering Studies.