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Copper and Gold Markets We receive market prices for our copper, gold and silver contained in our concen- trates. At current commodity prices, our mining revenues are derived approximately 60 percent from copper and 40 percent from gold. 

The fundamentals of the copper markets are positive, supported by continued growth in demand, primarily in China, and limited development of new supplies. Copper markets have operated in deficit since 2003 and inventories declined in 2004 to extremely low levels from a historical perspective. Copper prices began the year at $1.06 per pound and moved 

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significantly higher for most of the year, reaching a 16-year high of $1.49 per pound in October before closing the year at $1.48. Early in 2005, copper prices rose to new highs. 

The positive environment for gold continued in 2004 with gold prices ranging from $374-$456 per ounce, averaging $410 per ounce. In recent years, a weakened U.S. dollar, large U.S. budget deficits, low interest rates accompanied by reduced forward sales by producers, and geopolitical concerns have resulted in higher gold prices. 

