2010 Full Year Results Presentation - Antofagasta plc
2010 Full Year Results Presentation - Antofagasta plc
2010 Full Year Results Presentation - Antofagasta plc
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Molybdenum market<br />
Molybdenum price and market balance<br />
• Market fundamentals remain strong<br />
driven by recovery in the stainless steel<br />
market<br />
• China remains a net importer, though<br />
not at the exceptional levels of 2009<br />
Marke t b alan ce (m lbs )<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
-10<br />
M arke t balance (m lbs)<br />
N o mina l price (U S $/lb)<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 <strong>2010</strong> 2011<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
P ric e (U S D /lb )<br />
• China has declared molybdenum as<br />
strategic element limiting exports.<br />
• Improved demand from USA and Europe.<br />
• High marginal cost of production<br />
provides a support to prices.<br />
• Large size projects postponed and no<br />
new significant production expected in<br />
the short term.<br />
-20<br />
S o u rce : A nto fag asta Min erals -10<br />
• Market consensus is for a price of<br />
approximately US$18 per pound in 2011<br />
53
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