Copper producer Phelps Dodge (NYSE) is benefiting from a hedging program that applies to about 45% of its projected 1993 output.
The company reports that contracts with several financial institutions provide for a minimum 1993 annual average price of US95 cents per lb. for 475 million lb. of copper cathode.
These contracts are based on the average London Metal Exchange price for the entire year; any benefit will therefore be determined at year-end. During the second quarter, the company realized estimated revenue of US$7 million (before taxes) from these arrangements.
Copper has been trading below US90 cents for the past several months.
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