Minto safe from falling metal prices, for now

Sherwood Copper is waiting out the economic storm before deciding whether dropping metal prices should affect operations.

Sherwood Copper is waiting out the economic storm before deciding whether dropping metal prices should affect operations.

“The very rapid and significant drop in metal prices will have to be assessed once there is any sense of stability” said Stephen Quin, president, CEO and director of Sherwood Copper.

Sherwood is protected from any immediate changes at the moment.

“At Minto, we have just completed a major waste-removal program, exposing a significant quantity of high-grade ore,” wrote Quin in an e-mail.

The ore is a much higher than average quality.

“The (ore) will be processed between now and the end of 2009, which should allow us to remain profitable at depressed copper prices,” said Quin.

“Assuming (prices) don’t go right through the floor,” he wrote.

Minto Exploration has forward sold approximately 100 million pounds of copper at prices significantly higher than the current price, he said.

Minto, Sherwood’s subsidiary, sells copper from the mine.

This forward contract should also help insulate the Minto Mine from depressed copper prices, said Quin.