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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Antofagasta - Copper mines boosted by price surge

April 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

News that the US is considering banning the export of scrap metals for the first time since the 1970s is the first panicky reaction to dwindling world copper supplies, caused by insatiable demand from Chinaalong with a recovery in the US.  The price of copper has now risen over 70% to US139c/lb since last October and could go higher, with analysts calculating that inventories can only supply three weeks of global demand – a near critical level.   Not surprisingly the market's purest copper producer, Chilean-based, Antofagasta, has had a fantastic run, allowing it to proudly enter the FTSE 100 for the first time in its history. Apart from owning a railway and a water concession in the arid northern part of Chile ...

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