By Leia Michele Toovey-Exclusive to Copper Investing News

Share Speculation that the worst may be over, when it comes to the recession sent the price of copper above $2.00 a pound on Thursday for the first time since October.  Stock indexes rose in Asia and Europe this week and were poised for gains in the U.S. after leaders at the Group of 20 summit claimed they would triple the IMF’s resources to kick start the slumping economy. Copper has surged 42 per cent this year.

Copper futures for May delivery advanced 11.05 cents, or 5.8 per cent, to $2.0005 a pound on the Comex division of the New York Mercantile Exchange. This week, the metal added another 9 per cent to its rally started at the end of December. The metal’s gain in 2009 trails only gasoline among 19 raw materials in the Reuters/Jefferies CRB Index.

J P Morgan raised its 2009 copper forecast to $3,338 a tonne from $3,163 but lowered its forecast on aluminum to $1,438 from $1,463.  LME copper for three-month delivery climbed to a session peak at $4,540 a tonne; it’s highest since October 30. It last traded at $4,523, up $123 from Wednesday’s close. Refined copper imports into China are likely to hit a new record above 300,000 tonnes in March. 

Company News

Credit Suisse has increased their first-quarter 2009 earnings-per-share estimate for Freeport-McMoRan Copper & Gold, the world’s largest publicly traded copper producer from a loss of 7 cents to earnings of 25 cents. The adjustment in projections came as copper’s performance so far in 2009 has been better than anticipated. Freeport-McMoRan’s first-quarter overall realized price was $1.72 per pound, versus Credit Suisse’s preliminary estimate of $1.50 per pound, translating into a positive impact of approximately 10 cents per share.

Grupo Mexico SAB, Mexico’s largest mining company, may lose control of Southern Copper Corp. under a ruling issued by a U.S. judge last week. District Judge Andrew Hanen on April 1 ordered Grupo Mexico to return about 30 per cent of the shares of the Peruvian copper miner to bankrupt Asarco. Should the ruling be implemented immediately, Grupo Mexico’s 80 per cent stake, would drop to just 49.4 per cent. Grupo Mexico has been locked in legal fights with its Asarco unit since losing control of the Tucson, Arizona-based company to a court-appointed board in 2005.

Yesterday, Asarco persuaded Hanen to temporarily limit Grupo Mexico’s control over its Southern Copper shares to prevent any loss in their value.  Grupo Mexico plans to appeal Hanen’s earlier order to return 260 million shares of Southern Copper to Asarco. Yesterday, Asarco filed court papers accusing Grupo Mexico of trying to maintain its voting majority by purchasing more stock and by ordering Southern Copper to conduct share buybacks. Southern Copper spent $384.7 million last year to buy back shares, according to the company’s fourth-quarter earnings report.

African Copper Plc announced on Thursday that its shareholder Natasa Mining Ltd had agreed to a US$ 6.5 million share purchase and an $8.5 million loan facility. The funds will provide African Copper with a much needed cash injection. The company currently has no income, as its principal Mowana Mine in Botswana has been placed on care and maintenance. The company said the low copper prices are expected to remain weak in the near term and “the group is therefore dependent on the injection of funding by Natasa pursuant to the proposals to enable it to continue to trade. Upon completion of the deal, African Copper’s current board will step down and Natasa’s nominees Chrisilios Kyriakou and Jonathan Reynolds would become chairman and chief financial officer, respectively.

Questions about this article? Leave a comment below or contact our editorial team at editor@resourceinvestingnews.com.