Falling copper prices have been a huge headache for Quadra Mining Inc. and it could get worse, says UBS analyst Onno Rutten.

In a note to clients on Tuesday following Quadra's financial update, the analyst said Quadra's core Robinson operation may have to close by early 2010 if copper prices don't recover to US$2 per pound by the middle of next year.

"If copper prices do not recover by 2009, Robinson would close and Quadra would become entirely dependent on the unproven Carlota project," said Mr. Rutten, adding that the projected start-up of Carlota appears in-line with his estimates. He downgraded the stock from "neutral" to "sell" and cut his price target from $4 to $2.75.

Quadra shares were down more than 10% on Tuesday morning and have now fallen more than 90% since hitting $27 in the spring.

Raymond James analyst Tom Meyer is decidedly more optimistic on Quadra prospects than his UBS peer, maintaining his "strong buy" rating while cutting his price target from $23 to $21.

Instead of focusing on a potential shut down of Robinson in 2010, he told clients that Quadra's strong balance sheet will allow it to weather the current economic storm.

He noted that Quadra expects to maintain US$$100 million in cash through the first quarter of 2010 and should it need to the, Mr. Meyer said the company has the option of deferring some of its capital spending at Robinson to conserve cash.

"To a degree, unlike many mining companies which need to manage their mines for the banks or bondholders in order to pay back credit lines or make principal and interest payments, Quadra has a higher level of flexibility given its strong balance sheet and options to defer spending in the short term." Mr. Meyer wrote.