Manuel Hernandez, mill manager at Duoro Mine (Duoro), located near Arequipa, Peru, was considering options for increasing output to take advantage of a recent spike in commodity prices. It was Wednesday, January 25, 2023, and prices for copper and gold, the main products of Duoro, were trading at historical highs compared to their five-year average. The mine manager had asked Hernandez to make recommendations about increasing production, and Hernandez had identified three options. Students are expected to evaluate each option and decide which, if any, would address Diaz’s objectives of increasing output and minimizing financial risks.