Outbreak affecting metal prices

By SHIRLEY MAULUDU
PRICES for all metals have been unstable in recent months, according to Ok Tedi Mining Ltd (OTML) chief executive and managing director Peter Graham.
Graham told The National yesterday that this was because of the global outbreak of the coronavirus.
“Prices for all metals have been volatile recently and are affected by the Covid-19 coronavirus impact on economies around the world,” he said.
“GDP (gross domestic product) growth forecasts have been revised down.
“Copper price is usually related to supply-demand fundamentals while gold is more subject to geo-political factors and financial uncertainty. Copper price is currently around US$2.50 (K8.33)/lb (pound) versus an average of around US$2.70 (K9)/lb in 2019.
“Gold is around US$1,550 (K5,169.58)/oz (ounces) down from a peak of around US$1,600 (K5,336.34)/oz but well up on the average for 2019.”
But Graham said the company viewed the price difference as almost neutral. “For Ok Tedi the net effect of copper price being down and gold price being up is almost neutral,” he said.
The Ok Tedi mine in 100 per cent PNG-owned.
It operates the open-pit copper, gold and silver mine in Western.
Meanwhile, Reuters last week reported that copper fell to its lowest in over three years on Thursday after the United States imposed a curb on travel from Europe due to the coronavirus and gave little detail on other plans to cushion its economy from the pandemic.
Three-month copper on the London Metal Exchange ended 1.6 per cent lower at US$5,440 (K18,496) a tonne, after falling as low as US$5,376.50 (K18,280), its weakest since November 2016.