Copper prices and TGB -
From Lehman Brothers, May 12:
"While many have disagreed, we have consistently argued that the risk to our above-consensus copper forecasts was likely to the upside. Our thesis remains that increasing the global supply of copper will prove much more difficult than many observers believe. With mature mines throughout the world encountering tougher mining conditions and facing shortages of skilled labor, machinery, and tires, "unexpected" production disappointments should be expected. With strong demand, low inventories, and restrained production, we are raising our copper price forecasts again. We expect copper to average $3.00 per pound for the rest of 2006, $2.75 per pound in 2007, and $2.25 per pound in 2008.
Again, we believe the risk to these forecasts is to the upside. We believe the sustainability of high copper prices will continue to surprise many investors.
