<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q
(Mark One)

/X/  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

     For the quarterly period ended JANUARY 31, 2001
                                       Or

/ /  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

     For the transition period from _______ to _______

                        COMMISSION FILE NUMBER 333-66291


                       THE DOE RUN RESOURCES CORPORATION
             (Exact name of registrant as specified in its charter)

                NEW YORK                             13-1255630
     (State or other jurisdiction of                (IRS Employer
      incorporation or organization)              Identification No.)


           1801 PARK 270 DRIVE, SUITE 300                   63146
                ST. LOUIS, MISSOURI
     (Address of principal executive offices)            (Zip Code)


Registrant's telephone number, including area code (314) 453 - 7100


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the proceeding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.

                                                               / / YES   /X/  NO

Number of shares outstanding of each of the issuer's classes of common stock, as
of March 16, 2001:

COMMON STOCK, $.10 PAR VALUE                       1,000 SHARES

<PAGE>
                        THE DOE RUN RESOURCES CORPORATION
                               INDEX TO FORM 10-Q

<TABLE>
<CAPTION>
                                                                                Page No.
                                                                                --------
<S>                                                                             <C>
PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                        THE DOE RUN RESOURCES CORPORATION

Condensed Consolidated Balance Sheets
  January 31, 2001 and October 31, 2000                                          3

Condensed Consolidated Statements of Operations
  three months ended January 31, 2001 and 2000                                   4

Consolidated Statements of Comprehensive Income
  three months ended January 31, 2001 and 2000                                   5

Condensed Consolidated Statements of Cash Flows
  three months ended January 31, 2001 and 2000                                   6

Notes to Consolidated Financial Statements                                      7-22

                               DOE RUN PERU S.R.L.

Condensed Consolidated Balance Sheets
  January 31, 2001 and October 31, 2000                                          23

Condensed Consolidated Statements of Operations
  three months ended January 31, 2001 and 2000                                   24

Condensed Consolidated Statements of Cash Flows
  three months ended January 31, 2001 and 2000                                   25

Notes to Condensed Consolidated Financial Statements                            26-28

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF                                29-37
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK                                                                      37

PART II.  OTHER INFORMATION.
ITEM 1.  LEGAL PROCEEDINGS                                                       37

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.
(a)  EXHIBITS                                                                    37

SIGNATURES                                                                       38

</TABLE>

<PAGE>
                        THE DOE RUN RESOURCES CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>

                                                                           JANUARY 31,        OCTOBER 31,
                                                                              2001               2000
                                                                           -----------        -----------
                                                                           (UNAUDITED)
<S>                                                                        <C>                <C>
                                     ASSETS
Current assets:
    Cash                                                                   $   4,875          $   8,295
    Trade accounts receivable, net of allowance for
       doubtful accounts                                                      76,525             77,018
    Inventories                                                              122,112            118,726
    Prepaid expenses and other current assets                                 39,716             40,250
    Net deferred tax assets                                                    3,096              2,592
                                                                           ---------          ---------
       Total current assets                                                  246,324            246,881

Property, plant and equipment, net                                           274,801            275,514
Special term deposit                                                         125,000            125,000
Net deferred tax assets                                                        4,791              4,598
Other noncurrent assets, net                                                  12,198             12,952
                                                                           ---------          ---------
       Total assets                                                        $ 663,114          $ 664,945
                                                                           =========          =========

                     LIABILITIES AND SHAREHOLDER'S DEFICIT
Current liabilities:
    Short-term borrowings and current maturities of long-term debt         $  13,122          $  14,824
    Accounts payable                                                          52,863             53,424
    Accrued liabilities                                                       59,361             50,789
                                                                           ---------          ---------
       Total current liabilities                                             125,346            119,037

Long-term debt, less current maturities                                      508,102            498,686
Other noncurrent liabilities                                                  53,220             54,136
                                                                           ---------          ---------
       Total liabilities                                                     686,668            671,859

Shareholder's deficit:

    Common stock, $.10 par value, 1,000 shares authorized,
         issued, and outstanding                                                  --                 --
    Additional paid-in capital                                                 5,238              5,238
    Retained deficit                                                         (28,177)           (10,947)
    Accumulated other comprehensive losses                                      (615)            (1,205)
                                                                           ---------          ---------
       Total shareholder's deficit                                           (23,554)            (6,914)
                                                                           ---------          ---------
       Total liabilities and shareholder's deficit                         $ 663,114          $ 664,945
                                                                           =========          =========
</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.

                                       3
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED
                                                                             JANUARY 31,
                                                                     ----------------------------
                                                                       2001               2000
                                                                     ---------          ---------
<S>                                                                  <C>                <C>
Net sales                                                            $ 187,225          $ 206,334

Costs and expenses:
      Cost of sales                                                    172,538            181,117
      Depletion, depreciation and amortization                           7,521              7,565
      Selling, general and administrative                                7,715              8,124
      Exploration                                                          417                600
      Unrealized gain on derivative financial instruments                  (56)                --
                                                                     ---------          ---------
        Total costs and expenses                                       188,135            197,406
                                                                     ---------          ---------
        Income (loss) from operations                                     (910)             8,928
Other income (expense):
      Interest expense                                                 (16,059)           (15,141)
      Interest income                                                    3,594              3,628
      Other, net                                                           336                431
                                                                     ---------          ---------
                                                                       (12,129)           (11,082)
                                                                     ---------          ---------
        Loss before income tax expense and cumulative
           effect of change in accounting principle                    (13,039)            (2,154)

Income tax expense                                                         417                119
                                                                     ---------          ---------
        Loss before cumulative effect of change
           in accounting principle                                     (13,456)            (2,273)
        Cumulative effect of change in accounting principle,
           net of income tax benefit                                    (3,774)                --
                                                                     ---------          ---------
                  Net loss                                           $ (17,230)         $  (2,273)
                                                                     =========          =========
</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.

                                       4
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION
           CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED
                                                                  JANUARY 31,
                                                            --------------------------
                                                              2001              2000
                                                            --------          --------
<S>                                                         <C>               <C>
Net loss                                                    $(17,230)         $ (2,273)
Unrealized gain on derivative financial instruments              590                --
                                                            --------          --------
      Comprehensive loss                                    $(16,640)         $ (2,273)
                                                            ========          ========

</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.

                                       5
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                   THREE MONTHS ENDED
                                                                                      JANUARY 31,
                                                                              --------------------------
                                                                                2001              2000
                                                                              --------          --------
<S>                                                                           <C>               <C>
Cash flows from operating activities:
    Net loss                                                                  $(17,230)         $ (2,273)
    Cumulative effect of change in accounting principle                          4,254                --
    Adjustments to reconcile net loss to net cash
       used in operating activities:
        Depreciation, depletion and amortization                                 7,521             7,565
        Imputed interest and amortization of deferred financing costs              944               932
        Unrealized gain on derivative financial instruments                        (56)               --
        Deferred income taxes                                                     (697)             (586)
        Increase/(decrease) resulting from other changes in
            assets and liabilities:                                              1,533           (11,351)
                                                                              --------          --------
                 Net cash used in operating activities                          (3,731)           (5,713)

Cash flows from investing activities:
    Purchases of property, plant and equipment                                  (6,792)           (8,480)
                                                                              --------          --------
        Net cash used in investing activities                                   (6,792)           (8,480)

Cash flows from financing activities:
    Proceeds from revolving loans and
       short term borrowings, net                                                8,465             9,264
    Payments on long-term debt                                                    (987)             (883)
    Payment of deferred financing costs                                           (375)               --
                                                                              --------          --------
        Net cash provided by financing activities                                7,103             8,381
                                                                              --------          --------
        Net decrease in cash                                                    (3,420)           (5,812)

Cash at beginning of period                                                      8,295             9,886
                                                                              --------          --------
Cash at end of period                                                         $  4,875          $  4,074
                                                                              ========          ========
Supplemental disclosure of cash flow information -
    Cash paid during the period for:
       Interest, net of capitalized interest                                  $  2,625          $  1,879
                                                                              ========          ========
       Income taxes                                                           $    278          $    412
                                                                              ========          ========
</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.

                                       6
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          UNAUDITED INTERIM FINANCIAL STATEMENTS

     These interim consolidated financial statements include the accounts of The
     Doe Run Resources Corporation and its subsidiaries (collectively, the
     Company). In the opinion of management, the interim consolidated financial
     statements contain all adjustments, consisting of normal recurring
     accruals, necessary to present fairly the consolidated financial position
     as of January 31, 2001 and results of operations for the three month
     periods ended January 31, 2001 and 2000. Interim periods are not
     necessarily indicative of results to be expected for the year.

          RECLASSIFICATIONS

     Certain prior year balances have been reclassified in order to conform to
     current presentation.

(2)  CHANGE IN ACCOUNTING PRINCIPLE

     Statement of Financial Accounting Standards No. 133, ACCOUNTING FOR
     DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, was issued by the
     Financial Accounting Standards Board in June 1998, and amended by
     Statement No. 138, ACCOUNTING FOR CERTAIN DERIVATIVE INSTRUMENTS AND
     CERTAIN HEDGING ACTIVITIES, AN AMENDMENT OF FASB STATEMENT NO. 133, issued
     in June 2000 (collectively, FAS 133). Under FAS 133, entities are required
     to carry all derivative instruments in the statement of financial position
     at fair value. The accounting for changes in the fair value (i.e. gains and
     losses) of a derivative instrument depends on whether it has been
     designated and qualifies as part of a hedging relationship, and if so,
     whether the derivative instrument is designated as a hedge of exposures to
     changes in fair values, cash flows or foreign currencies. If the hedged
     exposure is changes in fair values, the gain (loss) is recognized in
     earnings in the period of change, with an equal and offsetting (loss) gain
     recognized on the change in value of the hedged item. If the hedged
     exposure is changes in cash flows, the effective portion of the gain (loss)
     is reported as a component of other comprehensive income (outside earnings)
     until the forecasted hedged transaction affects earnings, when it is
     reclassified into earnings.

     The Company adopted FAS 133 as of November 1, 2000, in the first quarter in
     which it was required by the standard, as amended. The adoption of FAS 133
     resulted in a net transition loss of $3,774, net of income tax benefit of
     $480, and a gain recorded in other comprehensive income of $70.

(3)  INVENTORIES

     Inventories consist of the following:

<TABLE>
<CAPTION>
                                                 JANUARY 31,      OCTOBER 31,
                                                    2001             2000
                                                 -----------      ----------
<S>                                              <C>              <C>
     Finished metals and concentrates             $ 24,553         $ 20,408
     Metals and concentrates in process             57,821           57,391
     Materials, supplies and repair parts           39,738           40,927
                                                  --------         --------
                                                  $122,112         $118,726
                                                  ========         ========
</TABLE>

     Materials, supplies and repair parts are stated net of reserves for
     obsolescence of approximately $4,603 and $4,472 at January 31, 2001 and
     October 31, 2000, respectively.

                                       7
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(4)  DEBT

     On January 26, 2001, the Company entered into an amendment of its U.S.
     revolving credit facility. The amendment extends the term of the facility
     to January 15, 2003. In addition, the amendment includes changes to the net
     worth requirement, as well as the addition of a limitation on capital
     expenditures in the U.S. and requirements for earnings before interest,
     taxes, depreciation, depletion and amortization (EBITDA). The Company was
     in compliance with all applicable covenants at January 31, 2001.

(5)  SEGMENT INFORMATION

     The Company's operating segments are separately managed business units that
     are distinguished by products, location and production processes. The
     primary lead segment includes integrated mining, milling and smelting
     operations located in Missouri. The secondary lead segment, also located in
     Missouri, recycles lead-bearing feed materials, primarily spent batteries.
     The fabricated products segment produces value-added lead products. The
     Peruvian operations produce an extensive product mix of non-ferrous and
     precious metals through a subsidiary, Doe Run Peru S.R.L. (Doe Run Peru).

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED
                                                                    JANUARY 31,
                                                           ----------------------------
     OPERATING SEGMENTS - REVENUES                            2001              2000
                                                           ---------          ---------
<S>                                                        <C>                <C>
     Revenues from external customers:
        Peruvian operations                                $ 111,275          $ 123,244
        Primary lead                                          51,190             58,193
        Secondary lead                                        18,083             14,937
        Fabricated products                                    5,759              6,738
                                                           ---------          ---------
                Total                                        186,307            203,112

     Revenues from other operating segments: (1)
        Peruvian operations                                       --              1,526
        Primary lead                                             575                569
        Secondary lead                                           207                195
        Fabricated products                                       --                 11
                                                           ---------          ---------
         Total                                                   782              2,301
                                                           ---------          ---------
         Total revenues for reportable segments              187,089            205,413
                Other revenues (2)                               918              3,222
                Intersegment eliminations                       (782)            (2,301)
                                                           ---------          ---------
                       Total consolidated revenues         $ 187,225          $ 206,334
                                                           =========          =========
</TABLE>

     (1)  Transactions between segments consist of metal sales recorded based on
          sales contracts that are negotiated between segments on terms that
          management feels are similar to those that would be negotiated between
          unrelated parties.

     (2)  Other revenues consist of metal sales not attributed to operating
          segments and gains (losses) on hedging transactions.

                                       8
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED
     OPERATING SEGMENTS - EBITDA (EARNINGS BEFORE                  JANUARY 31,
       INTEREST, TAXES, AND DEPLETION, DEPRECIATION        --------------------------
            AND AMORTIZATION)                                2001              2000
                                                           --------          --------
<S>                                                        <C>               <C>
     Peruvian operations                                   $  8,551          $ 12,772
     Primary lead                                            (2,369)            4,092
     Secondary lead                                           3,448             3,113
     Fabricated products                                        501               552
                                                           --------          --------
             Total reportable segments                       10,131            20,529
     Other revenues and expenses (3)                            634               893
     Corporate selling, general and administrative
      expenses                                               (3,864)           (4,424)
     Intersegment eliminations                                  (10)              (74)
                                                           --------          --------
             Consolidated EBITDA                              6,891            16,924
     Depreciation, depletion and amortization                (7,521)           (7,565)
     Interest income                                          3,594             3,628
     Interest expense                                       (16,059)          (15,141)
     Unrealized gain on derivatives                              56                --
                                                           --------          --------
             Loss before income taxes                      $(13,039)         $ (2,154)
                                                           ========          ========
</TABLE>

     (3)  Other revenues and expenses include primarily exploration expenses,
          gains and losses recognized on closed hedge transactions, and
          adjustments necessary to state inventories at LIFO cost.

(6)  HEDGING AND DERIVATIVE FINANCIAL INSTRUMENTS

     A significant portion of the Company's sales contracts are priced based on
     an average London Metal Exchange (LME) or other exchange prices for the
     respective metal plus a negotiated premium. As such, the prices of the
     Company's products fluctuate due to factors in the market that are beyond
     the Company's control. These price changes expose the Company to
     variability in cash receipts. The purpose of the Company's price risk
     management program is to limit the Company's risk to acceptable levels,
     while enhancing revenue through the receipt of option premiums.

     The Company's price risk management program uses various derivative
     instruments in its attempt to mitigate commodity price risks. The Company
     uses purchased futures contracts as a fair value hedge of the change in
     fair value of inventory related to firm sales commitments with customers or
     as a cash flow hedge to lock in the price of lead purchases for its
     fabricated products subsidiary. In fair value hedges, the futures contracts
     are established at terms (quantities, prices and timing) that mirror those
     of the firm commitments. The Company uses sold futures contracts as a cash
     flow hedge to lock in the price of a portion of forecasted lead metal sales
     through September 2001 and to lock in the price of by-product sales whose
     prices are based on an average for a period after they are shipped.

     The Company routinely writes call options which, if exercised, will create
     sold futures contracts that will be designated as cash flow hedges of
     forecasted lead metal sales. The options generate premium income, which
     enhance revenues. The Company also uses futures contracts and options and
     combinations thereof to enhance revenue at contract prices that are
     acceptable to the Company, should the options be exercised. Because these
     instruments do not meet the requirements for hedge accounting under FAS
     133, the changes in fair market value related to these instruments
     (including the time value portion), which reflect market prices and
     volatility at the balance sheet date, are recorded in results of
     operations, and are expected to increase the volatility of reported
     results.

                                       9
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

     The amount reflected in other income/(expense) relates to the change in
     fair market value of derivative financial instruments that are not
     designated as hedges. For derivative instruments designated as hedges
     (futures contracts), the Company assesses effectiveness based on changes in
     the forward rate, and as a result, does not expect hedge ineffectiveness.

     The fair market value of the Company's derivative financial instruments
     reflected in the Company's balance sheet as of January 31, 2001 is the
     difference between quoted prices at the balance sheet date and the contract
     settlement value. The fair market value represents the estimated net cash
     the Company would receive (pay) if the contracts were canceled on the
     balance sheet date.

     The Company's open derivative financial instruments at January 31, 2001
were:

     SOLD (PURCHASED) FUTURES CONTRACTS (NUMBERS NOT IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                   Fair Market
       Metal             Quantity             Price Range            Value                 Period
------------------   --------------   ------------------------     ----------        ------------------
<S>                  <C>              <C>                          <C>               <C>
Lead (Hedges)         (19,456) tons   $.2090/lb. to $.2270/lb.     $  298,784        Feb. 01 to Dec. 01
                       21,026  tons   $.2143/lb. to $.2380/lb.        334,055        Feb. 01 to Oct. 01
Lead (Other)           34,282  tons   $.2170/lb. to $.2330/lb.       (631,103)       Feb. 01 to May 01
Copper (Hedges)           413  tons          $.8670/lb.                27,900        Feb. 01 to Apr. 01
Copper (Other)          1,598  tons   $.7950/lb. to $.9060/lb.       (534,247)       Feb. 01 to Apr. 01
Zinc (Hedges)           2,480  tons          $.4990/lb.                48,732        Feb. 01 to Oct. 01
                       (3,968) tons          $.5050/lb.              (164,430)       Feb. 01 to Dec. 02
Zinc (Other)           (1,984) tons   $.5030/lb. to $.5260/lb.       (170,500)       Feb. 01 to June 01
Silver               (175,000) oz.    $5.695/oz. to $5.8055/oz.      (229,993)       Mar. 01

</TABLE>

     SOLD CALL OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                   Fair Market
       Metal             Quantity             Price Range            Value                 Period
------------------   --------------   ------------------------     ----------        ------------------
<S>                  <C>              <C>                          <C>               <C>
Copper                 15,099 tons    $.7800/lb. to $.9979/lb.     $  (893,407)      Feb. 01 to Oct. 01
Lead                  102,653 tons    $.2123/lb. to $.2404/lb.      (2,062,715)      Feb. 01 to Feb. 02
Zinc                   11,574 tons    $.4990/lb. to $.5488/lb.        (120,820)      Feb. 01 to Oct. 01
Silver                250,000 oz.            $4.85/oz.                 (42,957)      Feb. 01 to Apr. 01
Gold                    3,000 oz.     $280.00/oz. to $285.00/oz.        (2,847)      Feb. 01 to Mar. 01

</TABLE>

     SOLD PUT OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                   Fair Market
       Metal             Quantity             Price Range            Value                 Period
------------------   --------------   ------------------------     ----------        ------------------
<S>                  <C>              <C>                          <C>               <C>
Copper                  1,748 tons    $.8200/lb. to $.8845/lb.     $  (161,136)      Feb. 01 to Mar. 01
Lead                   35,645 tons    $.2123/lb. to $.2200/lb.        (236,086)      Feb. 01 to Dec. 01
Zinc                    5,622 tons    $.4835/lb. to $.5670/lb.        (288,998)      Feb. 01 to Aug. 01
Silver                200,000 oz.     $4.70/oz. to $4.85/oz.           (11,917)      Feb. 01 to Oct. 01
Gold                    3,000 oz.     $270.00/oz. to $280.00/oz.       (10,862)      Feb. 01 to Mar. 01
</TABLE>

                                       10
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

     At January 31, 2001, the Company had recorded an asset of $1,504 and a
     liability of $6,357 related to the fair market values of these instruments.
     The Company also had recorded an asset of $66 for the fair value of firm
     commitments designated as the hedged item in fair value hedges. To affect
     these balances, the Company recorded the transition adjustment discussed in
     Note 2, a gain reflected in other income/expense of $56, and other
     comprehensive income of $590, net of the effect of balances of deferred
     option premiums and options at fair market value previously recorded on the
     balance sheet. The balance of $590 in comprehensive income will be
     recognized in earnings as the forecasted sales/purchases occur through
     December, 2001.

(7)  ENVIRONMENTAL AND LITIGATION MATTERS

     ENVIRONMENTAL

     The Company has recorded a liability of approximately $30,300 as of January
     31, 2001, which represents management's best estimate of known obligations
     relating to the environmental and reclamation matters that are discussed
     below.

          DOMESTIC OPERATIONS

     The Company is subject to numerous federal, state and local environmental
     laws and regulations governing, among other things, air emissions, waste
     water discharge, solid and hazardous waste treatment, and storage, disposal
     and remediation of releases of hazardous materials. In common with much of
     the mining industry, the Company's facilities are located on sites that
     have been used for heavy industrial purposes for decades and may require
     remediation. The Company has made and intends to continue making the
     necessary expenditures for environmental remediation and compliance with
     environmental laws and regulations. Environmental laws and regulations may
     become more stringent in the future which could increase costs of
     compliance.

     Primary smelter slag produced by and stored at the primary smelter in
     Herculaneum, Missouri is currently exempt from hazardous waste regulation
     under the Resource Conservation and Recovery Act of 1976, as amended
     (RCRA), but is subject to a state closure permit. The Company has accrued
     approximately $1,000 related to the cost of closure pursuant to this
     permit, which is management's best estimate of closure costs under the
     current requirements of the permit.

     The Company signed a voluntary Administrative Order of Consent (AOC) in
     September 2000 to study and address issues related to the slag pile, plant
     property, community soils adjacent to the primary smelter in Herculaneum,
     elevated blood lead levels in the community and lead releases from the
     plant. At this time, it is not possible to determine the outcome of the
     study or what potential remediation actions, if any, may be required after
     the study is completed. In addition, the Company has agreed to replace the
     soil in yards of private residences within a half-mile of the smelter. The
     estimated cost of this cleanup is approximately $800, to be performed in
     fiscal 2001 and the first part of 2002. The Company has also agreed to test
     soils in an area outside the half-mile zone to determine if additional
     remediation is required. The EPA has not yet signed the AOC, and
     estimated costs may change if required levels of remediation are different
     than currently estimated or if additional homes are identified as a result
     of soil testing.

     The Company, working with the Missouri Department of Natural Resources and
     the Missouri Air Conservation Commission, has developed a new plan to bring
     the Herculaneum smelter in compliance with the ambient air quality standard
     for lead promulgated under the federal Clean Air Act. The plan was included
     in a consent judgement entered into by the Company in December 2000, and
     has been approved at the state level and by the U.S. EPA. Of the remaining
     capital expenditures of approximately $11,000, approximately $6,500 will
     be spent in fiscal 2001. Additional review of the project requirements has
     resulted in a change in timing of the expenditures.

     The Company has received notice that it is a potentially responsible party
     (PRP) subject to liability under The Comprehensive Environmental Response,
     Compensation and Liability Act of 1980, as amended (CERCLA) at the
     following sites: six sites in St. Francois County, Missouri, including the
     Big River Mine Tailings site, the Bonne

                                       11
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

     Terre site, the Federal site, the National site, the Rivermines site and
     the Leadwood site; the Oronogo-Durenweg site in Jasper County, Missouri;
     the Cherokee County site in Cherokee County, Kansas; the Tar Creek site in
     Ottawa County, Oklahoma; the Block "P" site in Cascade County, Montana; and
     the Missouri Electric Works site in Cape Girardeau, Missouri. There are two
     additional sites in St. Francois County for which the EPA has indicated it
     will issue notice. These sites involve historical operations of
     predecessors of the Company. CERCLA provides for strict and, in certain
     circumstances, joint and several liability for response costs and natural
     resource damages. The Company has a reserve as of January 31, 2001 of
     approximately $9,800 for these sites, including the two additional
     sites in St. Francois County, which the Company believes is adequate based
     on its investigations to date. However, depending upon the types of
     remediation required and certain other factors, costs at these sites,
     individually or collectively, could have a material adverse effect on the
     results of operations, financial condition and liquidity of the Company.

     The Company signed a voluntary AOC in 1994 with the EPA to remediate the
     Big River Mine Tailings site; the remediation work required by the AOC has
     been substantially completed, and will be followed by revegetation and
     ongoing monitoring and maintenance activities.

     The Company has also signed AOC's to perform an Engineering Evaluation/Cost
     Analysis (EE/CA) on each of the Bonne Terre, National, Rivermines, and
     Leadwood sites for remediation of the mine waste areas at these sites. In
     addition, the Company has signed an AOC with the EPA to conduct a Remedial
     Investigation/Feasibility Study (RI/FS) to assess potential off-site
     impacts of site operations on and the need for remediation regarding
     groundwater, residential soils, several creeks and a river. The RI/FS is
     being conducted by a third party with completion currently expected within
     two years. The Company has signed an order to conduct interim measures
     until the RI/FS is complete, consisting of blood lead testing of young
     children, residential soil sampling, and limited soil remediation as
     indicated by the testing and sampling results. The Company believes the
     current reserves assigned to these sites are adequate. However, should
     remediation goals or areas change, requiring substantially increased
     measures, there can be no assurance that the reserves would be adequate.

     The Company has been advised by the EPA that it is considering taking
     certain response actions at a mine site in Madison County, Missouri known
     as the Mine LaMotte Site. A predecessor of the Company was a former
     operator of the site in a joint venture with another company. The EPA has
     not decided whether any action will be taken, but the Company and the joint
     venture partner have signed an AOC to conduct an RI/FS at the site. This
     site is substantially smaller than the sites in St. Francois County where
     the Company has been named a PRP, and the potential issues are less
     complex. The Company has also been advised that remediation is required at
     a related small satellite mine site. After conducting an investigation, the
     Company has determined that it was not involved in operations at the
     satellite site. At this time, based on this preliminary information and an
     inspection of the sites, management does not believe that any future action
     will result in a material adverse impact to the results of operations,
     financial condition or liquidity of the Company.

     The Company's Buick recycling facility is subject to corrective action
     requirements under RCRA as a result of a storage permit for certain wastes
     issued in 1989. This will involve remediation of solid waste management
     units at the site, although the plan for corrective action has not yet been
     finalized. The Company has reserves as of January 31, 2001 of approximately
     $1,500 for corrective action and $2,600 for closure costs for the
     permitted storage area. While management believes these reserves are
     adequate based on expectations of the closure plan requirements, regulators
     could require that additional measures be included in the finalized plan,
     which could change the estimate of the costs for corrective action.

     The Company's domestic operating facilities have wastewater discharge
     permits issued under the federal Clean Water Act, as amended. It is
     possible that stricter discharge limits than previously in effect may be
     included in certain permits now in renewal. If additional treatment
     facilities were required under these permits, capital expenditures of
     approximately $2,500 would be required. Management does not expect an
     appreciable increase in operating costs.

                                       12
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

     The Company's mining and milling operations include six mine waste disposal
     facilities that are subject to Missouri mine closure permit requirements.
     Certain closure requirements have already been performed, and the remaining
     estimated cost of future closure activities is approximately $7,600. The
     Company's mine and mill closure reserves were approximately $7,400 as of
     January 31, 2001.

          FOREIGN OPERATIONS

     Doe Run Peru submitted to and received approval from the Peruvian
     government for an Environmental Adjustment and Management Program (PAMA)
     that consisted of an environmental impact analysis, monitoring plan and
     data, mitigation measures and closure plan. The PAMA also sets forth the
     actions and corresponding annual investments the concession holder agrees
     to undertake in order to achieve compliance with the maximum applicable
     limits prior to expiration of the PAMA (ten years for smelters, such as Doe
     Run Peru's operations in La Oroya, and five years for any other type of
     mining or metallurgical operation like Cobriza). The required amount of
     annual investment must not be less than one percent of annual sales. Once
     approved, the PAMA functions as the equivalent of an operating permit with
     which the operator must comply. After expiration of the PAMA, the operator
     must comply with all applicable standards and requirements. Future changes
     in legal rules and maximum permissible levels would not be applicable to
     Doe Run Peru for the remaining period of the PAMA.

     Doe Run Peru has committed under its PAMA to implement the following
     projects at its La Oroya smelter through December 31, 2006:

     -    New sulfuric acid plants

     -    Treatment plant for the copper refinery effluent

     -    Industrial waste water treatment plant for the smelter and refinery

     -    Improve Huanchan lead and copper slag deposits

     -    Build an arsenic trioxide deposit

     -    Management and disposal of lead and copper slag wastes

     -    Domestic waste water treatment and domestic waste disposal

     Through January 31, 2001, the Company had spent approximately
     $20,600 on projects under the La Oroya PAMA.

     Annual spending on a calendar year basis as approved in the La Oroya PAMA,
     is as follows:

<TABLE>
<CAPTION>
                                             Estimated
                    Year                        cost
                    ----                     ---------
<S>                                          <C>
                    2001                       13,800
                    2002                       14,300
                    2003                       13,180
                    2004                       30,055
                    2005                       34,790
                    2006                       42,040
                                              -------
                                              148,165
                                              =======
</TABLE>

     The current estimate for the total to be expended on environmental projects
     under the PAMA and on additional related process changes for Doe Run Peru
     is approximately $190,000 for the remaining term of the PAMA.
     Doe Run Peru has requested permission from the MEM to change certain PAMA
     projects and the timing of their completion. There can be no assurance that
     the MEM will approve the proposed changes to the PAMA or that
     implementation of the changes will not increase the cost of compliance.

                                       13
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

     Doe Run Peru's operations historically and currently exceed some of the
     applicable Ministry of Energy and Mines (MEM) maximum permissible limits
     pertaining to air emissions, ambient air quality and waste water effluent
     quality. The PAMA projects, which are more fully discussed below, have been
     designed to achieve compliance with such requirements prior to the
     expiration of the PAMA on January 13, 2007. No assurance can be given that
     implementation of the PAMA projects is feasible or that their
     implementation will achieve compliance with the applicable legal
     requirements by the end of the PAMA period. Further, there can be no
     assurance that the Peruvian government will not in the future require
     compliance with additional or different environmental obligations that
     could adversely affect Doe Run Peru's business, financial condition or
     results of operations. Under the purchase agreement related to the
     acquisition of the La Oroya assets in October 1997, Empresa Minera del
     Centro del Peru S.A. (Centromin), the previous owner of the La Oroya
     assets, agreed to indemnify Doe Run Peru against environmental liability
     arising out of its prior operations, and performance of the indemnity has
     been guaranteed by the Peruvian government through the enactment of the
     Supreme Decree No. 042-97-PCM. However, there can be no assurance that
     Centromin will satisfy its environmental obligations and investment
     requirements, including those in its PAMA, or that the guarantee will be
     honored. Any failure by Centromin to satisfy its environmental obligations
     could adversely affect Doe Run Peru's business, financial condition or
     results of operations.

     The Cobriza mine has a separate PAMA in which the Company has committed to
     complete projects to manage tailings, sewage and garbage by mid-2002. The
     Company has spent approximately $8,300 under the PAMA as of January
     31, 2001. After beginning construction on the largest of the projects, the
     tailings backfill project, revisions to the cost estimate increased
     substantially. As a result, the Company has requested a revision of its
     PAMA from the MEM, which would allow it to operate for a time without
     completing the backfill project. Future economic and operating conditions
     could affect the Company's ability to complete the backfill project. The
     Company is currently in compliance with its requirement to reduce emissions
     from the mine under the PAMA through a decrease in production. The Company
     is delaying further spending on the tailing projects in the PAMA while
     tailings options, mine plans and cost estimates are reviewed. At this time,
     it is not possible to determine whether the MEM will allow the Company to
     amend its PAMA. Mine plans and costs could change if the MEM does not allow
     the Company to amend its PAMA.

     The Company is responsible for the closure costs relating to a zinc ferrite
     disposal site. The Company has accrued $7,200 for the closure costs and,
     although a plan for closure of the site has not been finalized, management
     believes that this reserve is adequate.

          CONSOLIDATED

     The Company believes its reserves for domestic and foreign environmental
     and reclamation matters are adequate, based on the information currently
     available. Depending upon the type and extent of remediation activities
     required, costs in excess of established reserves are reasonably possible.
     Therefore, there can be no assurance that additional costs, both
     individually and in the aggregate, would not have a material adverse effect
     on the results of operations, financial condition and liquidity of the
     Company.

          LITIGATION

     The Company is a defendant in six lawsuits alleging certain damages
     stemming from the operations at the Herculaneum smelter. Two of these cases
     are class action lawsuits. In one case, the plaintiffs seek to have
     certified two separate classes. The first class would consist of property
     owners in a certain section of Herculaneum, alleging that property values
     have been damaged due to the operations of the smelter. The second class
     would be composed of children who lived in Herculaneum during a period of
     time when they were nine months to six years old, and the remedy sought is
     medical monitoring for the class. On December 5, 2000 the court denied
     class certification for both classes. The second case is similarly seeking
     certification of a class of property owners allegedly damaged by operations
     from the smelter, but the potential size of the class is every home in

                                       14
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

     Herculaneum, Missouri. Investigation and research by the Company indicates
     property values in Herculaneum are consistent with those of surrounding
     communities and have not been affected by the smelter. Finally, based on
     rules for class certification, and the reasoning in the December 5 court
     ruling in the first case, the Company believes class certification in the
     second case is unlikely.

     The other four cases are personal injury actions by seventeen individuals
     who allege damages from the effects of lead poisoning due to operations at
     the smelter. Punitive damages also are being sought in each case. The
     Company is vigorously defending all of these claims.

     Because the cases are in discovery, the Company is unable at this time to
     state with certainty the expected outcome of and the final costs of any of
     these cases. Therefore, there can be no assurance that these cases would
     not have a material adverse effect, both individually and in the aggregate,
     on the results of operations, financial condition and liquidity of the
     Company.

     On May 21, 1999, a lawsuit was filed against the Company alleging certain
     damages from discontinued mine facilities in St. Francois County. The
     plaintiffs seek to have certified two separate classes. The first class
     would consist of property owners, alleging that property values have been
     damaged due to the tailings from the discontinued operations. The second
     class would be composed of children, and the remedy sought is medical
     monitoring for the class. The Company intends to vigorously defend itself
     against this claim. The Company is unable at this time to state with
     certainty the expected outcome of and the final costs of this suit.
     Therefore, there can be no assurance the suit will not have a material
     adverse effect on the results of operations, financial condition and
     liquidity of the Company.

     The Company, with several other defendants, has been named in six cases in
     Maryland. One case is seeking certification as a class the owners of all
     housing in the State of Maryland built prior to 1978 that have lead paint
     on the premises. The complaint alleges that all defendants were members of
     Lead Industries Association (LIA), a trade association, and that the
     defendants improperly promoted lead paint. The suit seeks damages for paint
     removal for all such housing in the State of Maryland. The other suits seek
     damages, alleging personal injuries as a result of lead poisoning from
     exposure to lead paint and tetraethyl lead dust. The suits seek punitive
     damages. Discovery has just begun, and the Company is unable at this time
     to state with certainty the expected outcome of and the final costs of any
     of these cases. Therefore, there can be no assurance that these cases would
     not have a material adverse effect on the results of operations, financial
     condition and liquidity of the Company.

     In February, 2000 the Company and several other parties were named
     defendants in a suit brought by the City of St. Louis, Missouri for costs
     allegedly incurred and to be incurred by the plaintiff for the care of
     lead-poisoned persons, education programs for children injured by exposure
     to lead and the abatement of lead hazards purportedly created by the
     defendants in the City of St. Louis. The complaint alleges that the
     defendants made material misrepresentations and intentional omissions of
     material facts to the City and/or its residents regarding the nature of
     lead and lead products, such as paint. The suit also seeks punitive
     damages. Discovery has yet to be initiated, the Company is unable at this
     time to state with certainty the expected outcome of and the final costs of
     any of these cases. Therefore, there can be no assurance that these cases
     would not have a material adverse effect on the results of operations,
     financial condition and liquidity of the Company.

     On November 1, 2000, one hundred and seven individual cases were filed that
     list the Company among the defendants, alleging that the employees or
     ex-employees of Burlington Northern Railroad who filed the cases were
     exposed to lead from the hauling of lead concentrates by the railroad.
     These cases were recently filed, and the Company is unable at this time to
     state with certainty the expected outcome of and the final costs of any of
     these cases. Therefore, there can be no assurance that these cases would
     not have a material adverse effect on the results of operations, financial
     condition and liquidity of the Company.

                                       15
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(8)  GUARANTOR SUBSIDIARIES

     The Guarantor Subsidiaries (Fabricated Products, Inc. (FPI) and DR Land
     Holdings, LLC (the Domestic Guarantors) Doe Run Cayman Ltd. (Doe Run
     Cayman) and certain subsidiaries, Doe Run Mining S.R.L. and its
     subsidiaries Doe Run Development S.A.C. and Doe Run Peru) have jointly and
     severally, fully, unconditionally and irrevocably guaranteed the Unsecured
     Notes and Secured Notes of the Company. Separate financial statements and
     other disclosures concerning certain Guarantor Subsidiaries and disclosures
     concerning non-Guarantor Subsidiaries have not been presented because
     management has determined that such information is not material to
     investors.. Intercompany transactions eliminated in consolidation consist
     of various service and agency fees between The Doe Run Resources
     Corporation and Doe Run Mining S.R.L, The Doe Run Resources Corporation and
     Doe Run Peru, and Doe Run Mining S.R.L and Doe Run Peru; and sales of metal
     to The Doe Run Resources Corporation by Doe Run Peru and to FPI by The Doe
     Run Resources Corporation.

                                       16
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(8)  GUARANTOR SUBSIDIARIES (CONTINUED)

                     Condensed Consolidating Balance Sheet
                       As of January 31, 2001 (unaudited)

<TABLE>
<CAPTION>
                                                The Company                  Doe Run
                                                 Excluding                    Cayman        Doe Run
                                                 Guarantor       Domestic   and Certain     Peru and                       The
                                                Subsidiaries    Guarantors  Subsidiaries  Subsidiaries   Eliminations    Company
                                                ------------    ----------  ------------  ------------   ------------   ---------
<S>                                             <C>             <C>         <C>           <C>            <C>            <C>
                                     ASSETS
Current assets:
  Cash                                            $      --     $      --     $      45     $   4,830     $      --     $   4,875
  Trade accounts receivable, net of
    allowance for doubtful accounts                  44,598         4,597            --        27,712          (382)       76,525
  Inventories                                        49,573         2,112            --        70,451           (24)      122,112
  Prepaid expenses and other current assets          11,301           422        (3,172)       31,165            --        39,716
  Net deferred tax assets                                --            --           (26)        3,122            --         3,096
  Due from subsidiaries                              18,744            --            --            --       (18,744)           --
  Due from parent                                        --            --            --        36,352       (36,352)           --
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total current assets                            124,216         7,131        (3,153)      173,632       (55,502)      246,324
Property, plant and equipment, net                  129,433         6,278            --       139,090            --       274,801
Special term deposit                                125,000            --            --            --            --       125,000
Net deferred tax assets                                  --            --            --         4,791            --         4,791
Other noncurrent assets, net                          9,529           182           186         2,301            --        12,198
Investment in subsidiaries                           25,243            --       198,307            --      (223,550)           --
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total assets                                  $ 413,421     $  13,591     $ 195,340     $ 319,814     $(279,052)    $ 663,114
                                                  =========     =========     =========     =========     =========     =========

                 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Current liabilities:
  Short-term borrowings and current
    maturities of long-term debt                  $     406     $      --     $   1,416     $  11,300     $      --     $  13,122
  Accounts payable                                   14,405         2,293            --        36,547          (382)       52,863
  Accrued liabilities                                35,384           332         5,686        17,959            --        59,361
  Due to subsidiaries                                    --            --        36,352            --       (36,352)           --
  Due to parent                                          --         9,095         1,827         7,822       (18,744)           --
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total current liabilities                        50,195        11,720        45,281        73,628       (55,478)      125,346
Long-term debt, less current maturities             342,599            --       125,000        40,503            --       508,102
Other noncurrent liabilities                         44,181         1,663            --         7,376            --        53,220
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total liabilities                               436,975        13,383       170,281       121,507       (55,478)      686,668
Shareholders' equity (deficit):
  Common stock, $.10 par value, 1,000 shares
    authorized,issued, and outstanding                    0            --            --            --            --             0
  Common stock, $1 par value, 1,000 shares
    authorized, issued, and outstanding                  --             1            --            --            (1)           --
  Common stock, $1 par value, 2,005,000 shares
    authorized, issued and outstanding                   --            --         2,005            --        (2,005)           --
  Common stock, one nuevo sole par value,
    729,548,057 shares authorized, issued
    and outstanding                                      --            --            --       271,435      (271,435)           --
  Additional paid in capital                          5,238         1,205            --       (16,234)       15,029         5,238
  Due from parent                                        --            --            --      (103,446)      103,446            --
  Retained earnings (deficit) and accumulated
    other comprehensive loss                        (28,792)         (998)       23,054        46,552       (68,608)      (28,792)
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total shareholders' equity (deficit)            (23,554)          208        25,059       198,307      (223,574)      (23,554)
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total liabilities and shareholders'
      equity (deficit)                            $ 413,421     $  13,591     $ 195,340     $ 319,814     $(279,052)    $ 663,114
                                                  =========     =========     =========     =========     =========     =========

</TABLE>

                                       17
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(8)  GUARANTOR SUBSIDIARIES (CONTINUED)

                     CONDENSED CONSOLIDATING BALANCE SHEET
                             AS OF OCTOBER 31, 2000

<TABLE>
<CAPTION>
                                                The Company                  Doe Run
                                                 Excluding                    Cayman        Doe Run
                                                 Guarantor       Domestic   and Certain     Peru and                       The
                                                Subsidiaries    Guarantors  Subsidiaries  Subsidiaries   Eliminations    Company
                                                ------------    ----------  ------------  ------------   ------------   ---------
<S>                                             <C>             <C>         <C>           <C>            <C>            <C>
                                     ASSETS
Current assets:
  Cash                                            $      --     $      --     $      45     $   8,250     $      --     $   8,295
  Trade accounts receivable, net of
    allowance for doubtful accounts                  48,745         3,197            --        25,425          (349)       77,018
  Inventories                                        49,388         1,988            --        67,364           (14)      118,726
  Prepaid expenses and other current assets           7,510           202        (2,176)       36,389        (1,675)       40,250
  Net deferred tax assets                                --            --           (34)        2,626            --         2,592
  Due from subsidiaries                              18,882            --            --            --       (18,882)           --
  Due from parent                                        --            --            --        34,667       (34,667)           --
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total current assets                            124,525         5,387        (2,165)      174,721       (55,587)      246,881
Property, plant and equipment, net                  130,822         6,657            --       138,035            --       275,514
Special term deposit                                125,000            --            --            --            --       125,000
Net deferred tax assets                                  --            --            --         4,598            --         4,598
Other noncurrent assets, net                         10,258           205           197         2,292            --        12,952
Investment in subsidiaries                           27,209            --       197,390            --      (224,599)           --
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total assets                                  $ 417,814     $  12,249     $ 195,422     $ 319,646     $(280,186)    $ 664,945
                                                  =========     =========     =========     =========     =========     =========

                 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Current liabilities:
  Short-term borrowings and current
    maturities of long-term debt                  $     396     $      --     $   1,382     $  13,046     $      --     $  14,824
  Accounts payable                                   19,043         2,011            --        32,719          (349)       53,424
  Accrued liabilities                                29,186           357         3,339        19,582        (1,675)       50,789
  Due to subsidiaries                                    --            --        34,667            --       (34,667)           --
  Due to parent                                          --         7,965         3,887         7,030       (18,882)           --
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total current liabilities                        48,625        10,333        43,275        72,377       (55,573)      119,037
Long-term debt, less current maturities             331,183            --       125,000        42,503            --       498,686
Other noncurrent liabilities                         44,920         1,840            --         7,376            --        54,136
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total liabilities                               424,728        12,173       168,275       122,256       (55,573)      671,859
Shareholders' equity (deficit):
  Common stock, $.10 par value, 1,000 shares
    authorized, issued, and outstanding                   0            --            --            --            --             0
  Common stock, $1 par value, 1,000 shares
    authorized, issued, and outstanding                  --             1            --            --            (1)           --
  Common stock, $1 par value, 2,005,000
    shares authorized, issued and outstanding            --            --         2,005            --        (2,005)           --
  Common stock, one nuevo sole par value,
    729,548,057 shares authorized, issued
    and outstanding                                      --            --            --       271,435      (271,435)           --
  Additional paid in capital                          5,238         1,205            --       (16,234)       15,029         5,238
  Due from parent                                        --            --            --      (104,090)      104,090            --
  Retained earnings (deficit) and
    accumulated other comprehensive loss            (12,152)       (1,130)       25,142        46,279       (70,291)      (12,152)
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total shareholders' equity (deficit)             (6,914)           76        27,147       197,390      (224,613)       (6,914)
                                                  ---------     ---------     ---------     ---------     ---------     ---------
    Total liabilities and shareholders'
      equity (deficit)                            $ 417,814     $  12,249     $ 195,422     $ 319,646     $(280,186)    $ 664,945
                                                  =========     =========     =========     =========     =========     =========

</TABLE>

                                       18
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(8)  GUARANTOR SUBSIDIARIES (CONTINUED)

                      CONSOLIDATING STATEMENT OF OPERATIONS
                 THREE MONTHS ENDED JANUARY 31, 2001 (UNAUDITED)

<TABLE>
<CAPTION>
                                                The Company                  Doe Run
                                                 Excluding                    Cayman        Doe Run
                                                 Guarantor      Domestic   and Certain     Peru and                       The
                                                Subsidiaries   Guarantors  Subsidiaries  Subsidiaries   Eliminations    Company
                                                ------------   ----------  ------------  ------------   ------------   ---------
<S>                                             <C>            <C>         <C>           <C>            <C>            <C>
Net sales                                        $  73,365     $   5,759     $   1,962     $ 111,275     $  (5,136)    $ 187,225

Costs and expenses:
  Cost of sales                                     69,242         4,844            --        99,224          (772)      172,538
  Depletion, depreciation and amortization           4,736           395            --         2,390            --         7,521
  Selling, general and administrative                3,865           409           810         6,985        (4,354)        7,715
  Exploration                                          417            --            --            --            --           417
  Unrealized (gain) loss on derivatives                743           (61)           --          (738)           --           (56)
                                                 ---------     ---------     ---------     ---------     ---------     ---------
    Total costs and expenses                        79,003         5,587           810       107,861        (5,126)      188,135
                                                 ---------     ---------     ---------     ---------     ---------     ---------

    Income (loss)from operations                    (5,638)          172         1,152         3,414           (10)         (910)

Other income (expense):
  Interest expense                                 (10,917)         (212)       (3,640)       (1,501)          211       (16,059)
  Interest income                                    3,742            --            --            63          (211)        3,594
  Other, net                                           402            (7)          (45)          (14)           --           336
  Equity in earnings of subsidiaries                (2,145)           --           917            --         1,228            --
                                                 ---------     ---------     ---------     ---------     ---------     ---------
                                                    (8,918)         (219)       (2,768)       (1,452)        1,228       (12,129)
                                                 ---------     ---------     ---------     ---------     ---------     ---------
    Income (loss) before income tax
      expense (benefit)                            (14,556)          (47)       (1,616)        1,962         1,218       (13,039)
    Income tax expense (benefit)                        25            --           472           (80)           --           417
                                                 ---------     ---------     ---------     ---------     ---------     ---------
    Income (loss) before cumulative effect
      of change in accounting principle            (14,581)          (47)       (2,088)        2,042         1,218       (13,456)
    Cumulative effect of change in accounting
      principle, net of income tax benefit          (2,649)           --            --        (1,125)           --        (3,774)
                                                 ---------     ---------     ---------     ---------     ---------     ---------

        Net income (loss)                        $ (17,230)    $     (47)    $  (2,088)    $     917     $   1,218     $ (17,230)
                                                 =========     =========     =========     =========     =========     =========
</TABLE>

                                       19
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(8)  GUARANTOR SUBSIDIARIES (CONTINUED)

                      CONSOLIDATING STATEMENT OF OPERATIONS
                 THREE MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
                                              The Company                  Doe Run
                                               Excluding                    Cayman        Doe Run
                                               Guarantor     Domestic   and Certain     Peru and                       The
                                              Subsidiaries  Guarantors  Subsidiaries  Subsidiaries   Eliminations    Company
                                              ------------  ----------  ------------  ------------   ------------   ---------
<S>                                           <C>           <C>         <C>           <C>            <C>            <C>
Net sales                                     $  81,942     $   6,749     $   3,473     $ 124,770     $ (10,600)    $ 206,334

Costs and expenses:
  Cost of sales                                  68,804         5,911            --       108,630        (2,228)      181,117
  Depletion, depreciation and amortization        4,954           391            --         2,220            --         7,565
  Selling, general and administrative             4,423           282         2,495         9,223        (8,299)        8,124
  Exploration                                       600            --            --            --            --           600
                                              ---------     ---------     ---------     ---------     ---------     ---------
    Total costs and expenses                     78,781         6,584         2,495       120,073       (10,527)      197,406
                                              ---------     ---------     ---------     ---------     ---------     ---------

    Income from operations                        3,161           165           978         4,697           (73)        8,928

Other income (expense):
  Interest expense                              (10,177)         (252)       (3,677)       (1,284)          249       (15,141)
  Interest income                                 3,785            --            --            92          (249)        3,628
  Other, net                                        385            (4)           (4)           54            --           431
  Equity in earnings of subsidiaries                790            --         4,141            --        (4,931)           --
                                              ---------     ---------     ---------     ---------     ---------     ---------
                                                 (5,217)         (256)          460        (1,138)       (4,931)      (11,082)
                                              ---------     ---------     ---------     ---------     ---------     ---------
    Income (loss) before income tax
      expense (benefit)                          (2,056)          (91)        1,438         3,559        (5,004)       (2,154)
    Income tax expense (benefit)                    217            --           484          (582)           --           119
                                              ---------     ---------     ---------     ---------     ---------     ---------

    Net income (loss)                         $  (2,273)    $     (91)    $     954     $   4,141     $  (5,004)    $  (2,273)
                                              =========     =========     =========     =========     =========     =========
</TABLE>

                                       20
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(8)  GUARANTOR SUBSIDIARIES (CONTINUED)

                 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                 THREE MONTHS ENDED JANUARY 31, 2001 (UNAUDITED)

<TABLE>
<CAPTION>
                                              The Company                  Doe Run
                                               Excluding                    Cayman        Doe Run
                                                Guarantor     Domestic   and Certain     Peru and                  The
                                              Subsidiaries  Guarantors  Subsidiaries  Subsidiaries Eliminations   Company
                                              ------------  ----------  ------------  ------------ ------------  ---------
<S>                                           <C>           <C>         <C>           <C>          <C>           <C>
Net cash provided by (used in)
  operating activities                          $ (9,785)    $ (1,130)    $  1,292     $  4,664     $  1,228     $ (3,731)
Cash flows from investing activities:
  Purchases of property, plant and equipment      (3,347)          --           --       (3,445)          --       (6,792)
  Investment in subsidiaries                       2,145           --         (917)          --       (1,228)          --
                                                --------     --------     --------     --------     --------     --------
    Net cash used in investing activities         (1,202)          --         (917)      (3,445)      (1,228)      (6,792)
Cash flows from financing activities:
  Proceeds from (payments on) revolving
    loans and short-term borrowings, net          11,318           --           --       (2,853)          --        8,465
  Payments on long-term debt                         (94)          --           --         (893)          --         (987)
  Payment of deferred financing costs               (375)          --           --           --           --         (375)
    Loans with parent/subsidiaries                   138        1,130         (375)        (893)          --           --
                                                --------     --------     --------     --------     --------     --------
    Net cash provided by (used in)
      financing activities                        10,987        1,130         (375)      (4,639)          --        7,103
                                                --------     --------     --------     --------     --------     --------
    Net decrease in cash                              --           --           --       (3,420)          --       (3,420)

Cash at beginning of period                           --           --           45        8,250           --        8,295
                                                --------     --------     --------     --------     --------     --------
Cash at end of period                           $     --     $     --     $     45     $  4,830     $     --     $  4,875
                                                ========     ========     ========     ========     ========     ========

</TABLE>

                                       21
<PAGE>
                        THE DOE RUN RESOURCES CORPORATION

             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(8)  GUARANTOR SUBSIDIARIES (CONTINUED)

                 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                 THREE MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
                                               The Company                   Doe Run
                                                Excluding                     Cayman        Doe Run
                                                 Guarantor     Domestic    and Certain     Peru and                       The
                                               Subsidiaries   Guarantors   Subsidiaries  Subsidiaries  Eliminations     Company
                                               ------------   ----------   ------------  ------------  ------------    ---------
<S>                                            <C>            <C>          <C>           <C>           <C>             <C>
Cash flows from operating activities:
Net cash provided by (used in)
  operating activities                            $(4,327)      $  (318)      $ 4,701       $  (838)      $(4,931)      $(5,713)
Cash flows from investing activities:
  Purchases of property, plant and equipment       (1,614)          (18)           --        (6,848)           --        (8,480)
  Investment in subsidiaries                         (790)           --        (4,141)           --         4,931            --
                                                  -------       -------       -------       -------       -------       -------
    Net cash provided by (used in)
      investing activities                         (2,404)          (18)       (4,141)       (6,848)        4,931        (8,480)
Cash flows from financing activities:
  Proceeds from revolving loans
    and short-term borrowings, net                  1,195            --            --         8,069            --         9,264
  Payments on long-term debt                          (85)           --            --          (798)           --          (883)
  Loans with parent/subsidiaries                   (1,576)        1,683          (560)          453            --            --
                                                  -------       -------       -------       -------       -------       -------
    Net cash provided by (used in)
      financing activities                           (466)        1,683          (560)        7,724            --         8,381
                                                  -------       -------       -------       -------       -------       -------
    Net increase (decrease) in cash                (7,197)        1,347            --            38            --        (5,812)

Cash at beginning of period                         7,197        (1,347)           39         3,997            --         9,886
                                                  -------       -------       -------       -------       -------       -------
Cash at end of period                             $    --       $    --       $    39       $ 4,035       $    --       $ 4,074
                                                  =======       =======       =======       =======       =======       =======

</TABLE>

                                       22
<PAGE>
                               DOE RUN PERU S.R.L.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                JANUARY 31,        OCTOBER 31,
                                                                   2001               2000
                                                                -----------        -----------
                                                                (UNAUDITED)
<S>                                                             <C>                <C>
                                     ASSETS
Current assets:
     Cash                                                        $   4,830          $   8,250
     Trade accounts receivable, net of allowance for
         doubtful accounts                                          27,712             25,425
     Inventories                                                    70,451             67,364
     Prepaid expenses and other current assets                      31,165             36,389
     Net deferred tax assets                                         3,122              2,626
     Due from parent                                                36,352             34,667
                                                                 ---------          ---------
         Total current assets                                      173,632            174,721

Property, plant and equipment, net                                 139,090            138,035
Net deferred tax assets                                              4,791              4,598
Other noncurrent assets, net                                         2,301              2,292
                                                                 ---------          ---------
         Total assets                                            $ 319,814          $ 319,646
                                                                 =========          =========

                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Short-term borrowings and current
         maturities of long-term debt                            $  11,300          $  13,046
     Accounts payable                                               36,547             32,719
     Accrued liabilities                                            17,959             19,582
     Due to parent                                                   7,822              7,030
                                                                 ---------          ---------
         Total current liabilities                                  73,628             72,377

Long-term debt, less current maturities                             40,503             42,503
Other noncurrent liabilities                                         7,376              7,376
                                                                 ---------          ---------
         Total liabilities                                         121,507            122,256

Shareholders' equity:
     Common stock, one nuevo sole par value, 729,548,057
         shares authorized, issued and outstanding                 271,435            271,435
     Additional paid in capital                                    (16,234)           (16,234)
     Due from parent                                              (103,446)          (104,090)
     Foreign currency translation adjustment                       (21,554)           (20,910)
     Retained earnings                                              68,106             67,189
                                                                 ---------          ---------
         Total shareholders' equity                                198,307            197,390
                                                                 ---------          ---------
         Total liabilities and shareholders' equity              $ 319,814          $ 319,646
                                                                 =========          =========
</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.

                                       23
<PAGE>
                               DOE RUN PERU S.R.L.
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                        THREE MONTHS
                                                                      ENDED JANUARY 31,
                                                                ----------------------------
                                                                   2001               2000
                                                                ---------          ---------
<S>                                                             <C>                <C>
Net sales                                                       $ 111,275          $ 124,770

Costs and expenses:
    Cost of sales                                                  99,224            108,630
    Depreciation and amortization                                   2,390              2,220
    Selling, general and administrative                             6,985              9,223
    Unrealized gain on derivative financial instruments              (738)                --
                                                                ---------          ---------
        Total costs and expenses                                  107,861            120,073
                                                                ---------          ---------
        Income from operations                                      3,414              4,697

Other income (expense):
    Interest expense                                               (1,501)            (1,284)
    Interest income                                                    63                 92
    Other, net                                                        (14)                54
                                                                ---------          ---------
                                                                   (1,452)            (1,138)
                                                                ---------          ---------
        Income before income tax benefit                            1,962              3,559

Income tax benefit                                                    (80)              (582)
                                                                ---------          ---------
        Income before cumulative effect
             of change in accounting principle                      2,042              4,141
        Cumulative effect of change in accounting
               principle, net of income tax benefit                (1,125)                --
                                                                ---------          ---------
        Net income                                              $     917          $   4,141
                                                                =========          =========

</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.

                                       24
<PAGE>
                               DOE RUN PERU S.R.L.
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                           THREE MONTHS
                                                                         ENDED JANUARY 31,
                                                                      ------------------------
                                                                        2001            2000
                                                                      -------          -------
<S>                                                                   <C>              <C>
Net cash provided by (used in) operating activities                   $ 4,664          $  (838)
Cash flows from investing activities:
     Purchases of property, plant and equipment                        (3,445)          (6,848)
                                                                      -------          -------
          Net cash used in investing activities                        (3,445)          (6,848)
Cash flows from financing activities:
     Proceeds from (payments on) revolving loans
        and short-term borrowings, net                                 (2,853)           8,069
     Payments on long-term debt                                          (893)            (798)
     Loans with parent                                                   (893)             453
                                                                      -------          -------
          Net cash provided by (used in) financing activities          (4,639)           7,724
                                                                      -------          -------
          Net increase (decrease) in cash                              (3,420)              38

Cash at beginning of period                                             8,250            3,997
                                                                      -------          -------
Cash at end of period                                                 $ 4,830          $ 4,035
                                                                      -------          -------

</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.

                                       25
<PAGE>
                               DOE RUN PERU S.R.L.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(1)  BASIS OF PRESENTATION

          UNAUDITED INTERIM FINANCIAL STATEMENTS

     In the opinion of management, the interim condensed consolidated financial
     statements of Doe Run Peru S.R.L. (Doe Run Peru) contain all adjustments,
     consisting of normal recurring accruals, necessary to present fairly the
     condensed consolidated financial position as of January 31, 2001 and
     results of operations for the three and nine month periods ended January
     31, 2001 and 2000. Interim periods are not necessarily indicative of
     results to be expected for the year.

          RECLASSIFICATIONS

     Certain prior year balances have been reclassified in order to conform to
     current presentation.

(2)  CHANGE IN ACCOUNTING PRINCIPLE

     Statement of Financial Accounting Standards No. 133, ACCOUNTING FOR
     DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, was issued by the
     Financial Accounting Standards Board in June 1998, and amended by
     Statement No. 138, ACCOUNTING FOR CERTAIN DERIVATIVE INSTRUMENTS AND
     CERTAIN HEDGING ACTIVITIES, AN AMENDMENT OF FASB STATEMENT NO. 133, issued
     in June 2000 (collectively, FAS 133). Under FAS 133, entities are required
     to carry all derivative instruments in the statement of financial position
     at fair value. The accounting for changes in the fair value (i.e. gains and
     losses) of a derivative instrument depends on whether it has been
     designated and qualifies as part of a hedging relationship, and if so,
     whether the derivative instrument is designated as hedge of exposures to
     changes in fair values, cash flows or foreign currencies. If the hedged
     exposure is changes in fair values, the gain (loss) is recognized in
     earnings in the period of change, with an equal and offsetting (loss) gain
     recognized on the change in value of the hedged item. If the hedged
     exposure is changes in cash flows, the effective portion of the gain (loss)
     is reported as a component of other comprehensive income (outside earnings)
     until the forecasted hedged transaction affects earnings, when it is
     reclassified into earnings.

     The Company adopted FAS 133 beginning November 1, 2000, in the first
     quarter in which it was required by the standard, as amended. The adoption
     of FAS 133 resulted in a net transition loss of $1,125, net of income
     tax benefit of $480.

(3)  INVENTORIES

<TABLE>
<CAPTION>
                                                       JANUARY 31,      OCTOBER 31,
                                                          2001             2000
                                                       -----------      ----------
                                                       (UNAUDITED)
<S>                                                    <C>              <C>
     Refined metals and concentrates for sale            $  5,524         $  2,307
     Metals and concentrates in process                    46,644           45,753
     Materials, supplies and spare parts                   18,283           19,304
                                                         --------         --------
                                                         $ 70,451         $ 67,364
                                                         ========         ========
</TABLE>


     Materials, supplies and repair parts are stated net of reserves for
     obsolescence of approximately $394 and $250 at January 31, 2001 and October
     31, 2000, respectively.

                                       26
<PAGE>
                               DOE RUN PERU S.R.L.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

(4)  HEDGING AND DERIVATIVE FINANCIAL INSTRUMENTS

     The Company's price risk management program uses various derivative
     instruments in its attempt to mitigate commodity price risks. The
     Company uses purchased futures contracts as a fair value hedge of the
     change in fair value of inventory related to firm sales commitments with
     customers. In fair value hedges, the futures contracts are established
     at terms (quantities, prices and timing) that mirror those of the firm
     commitments. The Company also uses futures contracts and options and
     combinations thereof to enhance revenue at contract prices that are
     acceptable to the Company, should the options be exercised. The options
     generate premium income, which enhance revenues. Because these
     instruments do not meet the requirements for hedge accounting under FAS
     133, the changes in fair market value related to these instruments
     (including the time value portion), which reflect market prices and
     volatility at the balance sheet date, are recorded in results of
     operations, and are expected to increase the volatility of reported
     results.

     The amount reflected in other income/(expense) relates to the change in
     fair market value of derivative financial instruments that are not
     designated as hedges. For derivative instruments designated as hedges
     (futures contracts), the Company assesses effectiveness based on changes in
     the forward rate, and as a result, does not expect hedge ineffectiveness.

     The fair market value of the Company's derivative financial instruments
     reflected in the Company's balance sheet as of January 31, 2001 is the
     difference between quoted prices at the balance sheet date and the contract
     settlement value. The fair market value represents the estimated net cash
     the Company would receive (pay) if the contracts were canceled on the
     balance sheet date.

     The Company's open derivative financial instruments at January 31, 2001
     were:

          PURCHASED FUTURES CONTRACTS (numbers not in thousands)

<TABLE>
<CAPTION>
                                                                         Fair Market
     Metal            Quantity               Price Range                    Value               Period
---------------    ----------------   ----------------------------      ------------      ------------------
<S>                <C>                <C>                               <C>               <C>
Copper               (1,433) tons        $.8070/lb. to $.9055           $  (462,292)      Feb. 01 to Apr. 01
Zinc (Hedges)        (3,968) tons               $.5050/lb.                 (164,430)      Feb. 01 to Dec. 02
Zinc (Other)           (330) tons               $.5025/lb.                  (18,975)      Feb. 01
Silver             (175,000) oz.         $5.695/oz. to $5.8055/oz.         (229,993)      Mar. 01
</TABLE>

          SOLD CALL OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                         Fair Market
     Metal            Quantity               Price Range                    Value               Period
---------------    ----------------   ----------------------------      ------------      ------------------
<S>                <C>                <C>                               <C>               <C>
Copper               13,956  tons        $.8200/lb. to $.9979/lb.       $  (737,764)      Feb. 01 to Oct. 01
Silver              250,000  oz.                $4.85/oz.                   (42,957)      Feb. 01 to Apr. 01
Gold                  3,000  oz.        $280.00/oz. to $285.00/oz.           (2,847)      Feb. 01 to Mar. 01
</TABLE>

                                       27
<PAGE>
                               DOE RUN PERU S.R.L.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)

     SOLD PUT OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                         Fair Market
     Metal            Quantity               Price Range                    Value               Period
---------------    ----------------   ----------------------------      ------------      ------------------
<S>                <C>                <C>                               <C>               <C>
Copper                1,748  tons        $.8200/lb. to $.8845/lb.       $  (161,136)      Feb. 01 to Mar. 01
Lead                 14,536  tons               $.2200/lb.                 (174,474)      Feb. 01 to Dec. 01
Zinc                  3,417  tons        $.4835/lb. to $.5670/lb.          (135,284)      Feb. 01 to Aug. 01
Silver              200,000  oz.          $4.70/oz. to $4.85/oz.            (11,917)      Feb. 01 to Oct. 01
Gold                  3,000  oz.        $270.00/oz. to $280.00/oz.          (10,862)      Feb. 01 to Mar. 01
</TABLE>

     At January 31, 2001, the Company had recorded a liability of $2,153 related
     to the fair market values of these instruments. The Company also had
     recorded an asset of $149 for the fair value of firm commitments designated
     as the hedged item in fair value hedges. To affect these balances, the
     Company recorded the transition adjustment discussed in Note 2 and
     reflected in other income/expense of $738, net of the effect of balances of
     deferred option premiums and options at fair market value previously
     recorded on the balance sheet.

(5)  RELATED PARTY TRANSACTIONS

     Effective November 1, 2000, the Company terminated all previously existing
     agreements for services with Doe Run Mining S.R.L. and the Doe Run
     Resources Corporation and replaced them with a Hedging Services Contract
     and an International Sales Agency Services Contract with the Doe Run
     Resources Corporation. Under the Hedging Services Contract, the Company
     will pay to the Doe Run Resources Corporation $42 per month for trading
     and hedging services. Under the International Sales Agency Services
     Contract, the Company will pay a commission of 2 1/4% of foreign sales
     to the Doe Run Resources Corporation. The Contracts cover an initial
     term of two years, and are annually renewable thereafter. Amounts
     expensed in the three months ended January 31, 2001 were $126 and $2,266
     under the Hedging Services Contract and the International Sales Agency
     Services Contract, respectively. Amounts expensed under the previous
     agreements for the three months ended January 31, 2000 totaled $4,826.

                                       28
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

     The following discussion and analysis includes both the U.S. operations and
the Peruvian operations of the Company and should be read in conjunction with
the consolidated financial statements of the Company and the notes thereto, and
other financial information included herein.

RESULTS OF OPERATIONS

     THREE MONTHS ENDED JANUARY 31, 2001 (THE 2001 QUARTER) COMPARED TO THE
     THREE MONTHS ENDED JANUARY 31, 2000 (THE 2000 QUARTER)

     The Company reported a net loss of $17.2 million for the 2001 quarter
compared to a net loss of $2.3 million for the 2000 quarter. The Company's U.S.
operations reported a net loss of $17.5 million (excluding intercompany fee
revenue of $2.4 million) for the 2001 quarter compared to a net loss of $8.0
million excluding intercompany fee revenue of $4.8 million) in the 2000 quarter.
The implementation of Statement of Financial Accounting Standards No. 133
Accounting for Derivative Instruments and Hedging (FAS 133), increased the net
loss $3.3 million. The remainder of the change is primarily due to increased
production cost and lower realized prices for lead and zinc. See "Item 1.
Financial Statements - Note 2 to the Company's Consolidated Financial
Statements" for a discussion of FAS 133. Peruvian operations had net income of
$0.3 million (excluding intercompany fees and eliminations of $2.4 million) in
the 2001 quarter compared to net income of $5.7 million (excluding intercompany
fees and eliminations of $4.9 million) in the 2000 quarter. The decrease in
Peruvian net income was due primarily to lower treatment and refining charges,
lower metal and byproduct sales volumes and lower metal prices.

     The Company's results for the 2001 quarter reflect declines in the market
prices of lead, zinc and silver and an increase in the market price of copper.
The following table sets forth average London Metal Exchange (LME) prices for
lead, copper and zinc and the average London Bullion Market Association (LBMA)
price for silver for the periods indicated:

<TABLE>
<CAPTION>
                                      THREE MONTHS ENDED
                                        JANUARY 31,
                               ---------------------------
                                   2001           2000
                               ------------   ------------
<S>                            <C>            <C>
     AVERAGE PRICES
     Lead ($/short ton)        $     426.00   $     432.20
     Copper ($/short ton)          1,641.20       1,612.00
     Zinc ($/short ton)              952.80       1,060.60
     Silver ($/troy ounce)             4.66           5.17
</TABLE>

     The average market price, determined on the London Metal Exchange (LME),
for refined lead was $.21 per pound in the 2001 quarter. Over the past three
years the LME lead price has declined as new mines have been developed in
Australia and Ireland, and as China has increased its lead metal production and
exports. During the second and third quarters of fiscal 2000 lead prices
declined to near historic lows. Although lead prices have improved recently,
they remain substantially below the ten-year average.

     Management believes that lead prices will recover from the current low
level, as several large lead-producing mines will be depleted beginning in 2001
through 2006. This should significantly reduce western world production and
bring about a deficit in supply versus demand. In recent publications, some
international commodity consultants are forecasting higher lead prices in the
next two to three years.

                                       29
<PAGE>

     Low metal prices, primarily lead and zinc, contributed to the operating
loss generated by the Company's U.S. operations in the 2001 quarter. The Company
is implementing changes to its operations, described below, which it expects
will reduce certain costs, and achieve certain operating efficiencies, in an
effort to mitigate the impact of low metal prices. However, prices sustained at
these levels or decreasing further are likely to result in the continuation of
operating losses for the Company's U.S. operations.

     The following table sets forth the Company's production statistics for the
periods indicated:

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED
                                                               JANUARY 31,
                                                            -------------------
                                                             2001         2000
                                                            ------       ------
<S>                                                         <C>          <C>
     U.S. OPERATIONS
       Lead metal - primary (short tons)                    83,195       99,206
       Lead metal - secondary (short tons)                  39,755       32,602
       Lead concentrates (metal content, short tons)        80,999       79,191
       Ore Grade                                              6.23%        5.47%

     PERUVIAN OPERATIONS
       Refined copper (short tons)                          17,948       18,349
       Refined lead (short tons)                            33,282       32,480
       Refined zinc (short tons)                            21,848       21,450
       Refined silver (thousands of troy ounces)             8,529        8,758
       Refined gold (thousands of troy ounces)                  20           29
       Copper concentrates (metal content, short tons)       4,449        5,704
       Ore Grade                                              1.07%        0.87%
</TABLE>

     In the U.S., lead ore production was scaled back based on evaluations
designed to optimize mine production in light of continued low lead prices.
Partially due to these changes in mining plans, lead ore grade improved 14% in
the 2001 quarter, compared to the 2000 quarter. As a result of the improved
grade, production of lead metal in concentrates increased 2.3% in the 2001
quarter.

     Primary smelter production for the 2001 quarter was 16% less than the 2000
quarter. At the Company's Herculaneum smelter the No.2 blast furnace was taken
down for scheduled maintenance in November. The No.3 furnace, a backup to the
No.2 furnace, did not perform as expected during the maintenance period, slowing
production from mid November through early March. The No.1 furnace experienced
multiple cooling system failures due to poor water quality, which caused a
five-day outage in December and caused the furnace to run slowly for much of the
quarter. As a result, Herculaneum's production for the 2001 quarter was
approximately 10,300 tons, or 16% less than the 2000 quarter. The water quality
problem has been resolved and the No.1 furnace is now running at capacity.
Maintenance on the No.2 furnace was completed in early March.

     The Company's Glover primary smelter was forced to shut down three times
during the quarter, twice due to mechanical failure of cooling system components
and once due to the failure of a baghouse fan motor. As a result, Glover's
production volume for the 2001 quarter was 5,700 tons or 16% less than the prior
year quarter. The Glover smelter is currently producing at slightly higher than
planned rates and management expects that the lost production will be recovered
by the end of fiscal 2001.

     On March 7, 2001, in response to continued poor lead metal market
conditions, the Company announced production changes at its U.S. primary lead
operations. These changes were made in an effort to allow the Company to compete
more effectively in the global market and improve overall financial performance.
The improvement should result from reduced production costs and enhanced product
mix as the smelters focus

                                       30
<PAGE>

on producing specialty and alloy products. The Herculaneum primary smelter will
cut its annual refined metal production rate by 80,000 tons from 250,000 to
170,000 tons. This will be accomplished through reductions in the purchase of
lead concentrates as well as concentrates produced at the southeast Missouri
mining operations. The Company will place its No. 29 mine on care and
maintenance and during 2001 the No. 28 mine be will mined to closure. The
Company will also reduce total concentrate production at its other five mines.
These production changes will result in a workforce reduction of approximately
240 employees in early May.

     The estimated cost of severance benefits and outplacement services provided
to certain employees of approximately $0.9 million will be accrued in the second
quarter and paid over 12 months beginning in May 2001. The estimated cost of
closing the No. 28 mine, the Viburnum mill and related surface structures and
tailings areas of approximately $0.6 million was accrued over the operating life
of the mine. These closure activities will be performed as labor and funds are
available.

     The Company's Buick secondary smelter continued its outstanding performance
into the 2001 quarter. An additional burner was installed on the smelter's
reverberatory furnace in December and modifications were made to the feed
delivery system making it possible to take full advantage of the furnace's
increased capacity. In addition, operating procedures were changed in the
plant's battery breaker, which eliminated bottlenecks and improved throughput by
15%, making more feed available to the furnaces. As a result, production volume
increased 22% in the 2001 quarter, compared to the 2000 quarter.

     In Peru, at the La Oroya metallurgical complex production of refined lead
and zinc were up 3% and 2%, respectively, in the 2001 quarter, compared to the
prior year. Refined copper production declined 2% primarily due to a one-day
production interruption resulting from a mechanical failure in the copper
smelter. Refined silver and gold production were both lower in the 2001 quarter
primarily due to lower metal content in the concentrate feed used.

     In May 2000, the Company implemented changes in operations at its Cobriza
copper mining operation intended to improve ore grade and reduce unit production
cost. The changes involved a reduction in annualized ore production of
approximately 31%. Ore grade has improved steadily since the new operating plan
was implemented, from 0.86% in the second quarter of 2000 to 1.07% in the 2001
quarter. Compared to the 2000 quarter, ore grade improved 9% in 2001 quarter.
Production of metal contained in concentrates was 22% lower in the 2001 quarter
due to the decrease in tons of ore produced.

                                       31
<PAGE>

     The following tables set forth the separate operating results, sales
volumes and realized prices for the Company's U. S. and Peruvian operations for
the periods indicated:

                           RESULTS OF U.S. OPERATIONS

<TABLE>
                                                           THREE MONTHS ENDED
                                                               JANUARY 31,
                                                         -----------------------
                                                           2001           2000
                                                         --------       --------
<S>                                                      <C>            <C>
Net sales (a)                                            $ 75,950       $ 83,090

Costs and expenses:
  Cost of sales                                            73,314         73,942
  Depletion, depreciation and amortization                  5,131          5,345
  Selling, general and administrative                       4,274          4,705
  Exploration                                                 417            600
  Unrealized loss on derivatives                              682             --
                                                         --------       --------
    Total costs and expenses                               83,818         84,592
                                                         --------       --------

    Loss from operations                                   (7,868)        (1,502)

Other income (expense)
  Interest expense                                        (10,918)       (10,180)
  Interest income                                           3,531          3,536
  Other, net                                                  395            381
                                                         --------       --------
                                                           (6,992)        (6,263)
                                                         --------       --------

    Loss before income tax expense and cumulative
      effect of change in accounting principal            (14,860)        (7,765)
Income tax expense                                             25            217
                                                         --------       --------
    Loss before cumulative effect of change in
      accounting principal                                (14,885)        (7,982)
                                                         --------       --------
Cumulative effect of change in accounting principal        (2,649)            --
                                                         --------       --------
Net loss                                                 $(17,534)      $ (7,982)
                                                         ========       ========
</TABLE>

(a)  Intercompany fees that are eliminated in the consolidated results of the
     Company and have been excluded from the results presented above are as
     follows:

<TABLE>
<S>                                   <C>           <C>
      Net Sales                       $  2,392      $  4,826

SALES VOLUMES (SHORT TONS)
  Lead metal                           104,390       108,258
  Zinc concentrates                     24,469        22,491
  Copper concentrates                    1,577         3,879

REALIZED PRICES ($/SHORT TON)(B)
  Lead metal                          $ 529.14      $ 542.41
  Zinc concentrates                     288.73        370.81
  Copper concentrates                   310.08        285.13
</TABLE>

     b)   Net realized prices for metals, concentrates, and by- products include
          the effects of in: 1) premiums received, including charges for special
          alloys and shapes, 2) adjustments to provisionally priced sales, 3)
          treatment and refining charges and 4) net hedging activity.

                                       32
<PAGE>
                         RESULTS OF PERUVIAN OPERATIONS

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED
                                                                   JANUARY 31,
                                                             -------------------------
                                                               2001            2000
                                                             ---------       ---------
<S>                                                          <C>             <C>
Net sales (a)                                                $ 111,275       $ 123,244

Costs and expenses:
  Cost of sales (a)                                             99,224         107,175
  Depreciation and amortization                                  2,390           2,220
  Selling, general and administrative (a)                        3,441           3,419
  Unrealized gain on derivatives                                  (738)             --
                                                             ---------       ---------
    Total costs and expenses                                   104,317         112,814
                                                             ---------       ---------
    Income from operations                                       6,958          10,430

Other income (expense):
  Interest expense                                              (5,141)         (4,961)
  Interest income                                                   63              92
  Other, net                                                       (59)             50
                                                             ---------       ---------
                                                                (5,137)         (4,819)
                                                             ---------       ---------
  Income before income tax expense (benefit) and
    cumulative effect of change in accounting principal          1,821           5,611
Income tax expense (benefit)                                       392             (98)
                                                             ---------       ---------
  Income before cumulative effect of change in
    accounting principal                                         1,429           5,709
Cumulative effect of change in accounting principal             (1,125)             --
                                                             ---------       ---------
Net Income (loss)                                            $     304       $   5,709
                                                             =========       =========

</TABLE>

(a)  Intercompany sales and fees that are eliminated in the consolidated results
     of the Company and have been excluded from the results presented above are
     as follows:

<TABLE>
<S>                                            <C>          <C>
  Net sales                                    $    --      $ 1,526
  Cost of sales                                     --        1,454
  Selling, general and administrative            2,392        4,826

SALES VOLUMES
  Copper (short tons)                           17,268       17,808
  Lead (short tons)                             32,818       28,089
  Zinc (short tons)                             21,143       19,882
  Silver (thousands of troy ounces)              8,154        8,724
  Gold bullion (thousands of troy ounces)           20           30

REALIZED PRICES
  Copper ($/short ton)                         $1,641.42    $1,608.38
  Lead ($/short ton)                            438.56       432.17
  Zinc ($/short ton)                            970.49      1,090.68
  Silver  ($/troy ounce)                          4.69         5.20
  Gold bullion  ($/troy ounce)                  266.98       291.31
</TABLE>

     b)   Net realized prices for metals, concentrates, and by- products include
          the effects of changes in: 1) premiums received, including charges for
          special alloys and shapes, 2) adjustments to provisionally priced
          sales, 3) treatment and refining charges and 4) net hedging activity.


                                       33
<PAGE>

     Results of operations for the three months ended January 31, 2001 and 2000
include the results of the Company's U.S. and Peruvian operations. In order to
provide a more meaningful analysis, the results attributable to Peruvian
operations will be noted and discussed separately under "Results of Peruvian
Operations".

     NET SALES in the 2001 quarter were $187.2 million compared to $206.3
million in the 2000 quarter. A decrease of $12.0 million is attributable to
Peruvian operations. U. S. net sales were $7.1 million lower in the 2001
quarter, compared to the 2000 quarter, primarily due to lower realized prices
for lead metal and zinc concentrates and a decrease in lead metal sales volume.
The average LME zinc price declined 10% in the 2001 quarter, compared to the
2000 quarter, reducing net sales by $2.0 million. Lead metal sales volume was 4%
lower than the prior year, reducing net sales by $2.1 million. The reduced
volume reflects somewhat weaker overall demand compared to the prior year,
primarily due to slower new cars sales, which reduced the demand for original
equipment automotive batteries. Increased competition from imported lead also
adversely affected sales volume. Metals industry statistics show that, for
calendar 2000, automotive battery demand in the U.S. was down about 1%, compared
to 1999, while imports of lead metal increased by approximately 80,000 tons or
40%. The net realized price for lead metal declined 2%, reducing net sales $1.4
million. The net realized price was lower primarily due to lower premiums
resulting from increasingly competitive conditions in the U.S. market. Other
sales were $1.6 million less than the prior year primarily due to reduced demand
for oxide and anodes sold by the Company's fabricated products subsidiary (FPI).

     COST OF SALES for the 2001 quarter was $172.5 million compared to $181.1
million for the 2000 quarter. Of this decrease, $8.0 million is attributable to
Peruvian operations. U.S. cost of sales for the first quarter of 2001 was $0.6
million less than the 2000 quarter. Volume changes, primarily lower lead metal
and copper concentrate sales, and reduced volumes at FPI reduced cost of sales
by $3.5 million. Most of this decrease was offset by increased lead metal unit
production cost, which was up 5% over the prior year, increasing cost of sales
$2.9 million. This increase is primarily due to the reduced volumes resulting
from the primary smelter problems, discussed earlier, and increased energy
costs, partially offset by improved efficiency at the secondary smelter. Energy
costs for the 2001 quarter were $2.4 million higher than the 2000 quarter,
primarily due to price increases for natural gas and propane, which increased
approximately 190% and 90%, respectively. These prices have dropped
significantly in recent weeks and are currently in line with planned prices.

     EXPLORATION expense for the 2001 quarter decreased $0.2 million, or 30%,
compared to the 2000 quarter. All of the reduction is attributable to U.S.
operations and it is due to the completion of certain maintenance work and
metallurgical testing related to a Missouri property, which was in process
during the 2000 quarter.

     UNREALIZED LOSS ON DERIVATIVES relates to the change in market value of
derivative financing instruments pursuant to FAS 133. Losses for the 2001
quarter resulted from the LME lead price at January 31, 2001 being higher
than the settlement price on certain sold futures contracts.

     INCOME (LOSS) FROM OPERATIONS for the 2001 quarter was a $0.9 million loss
compared to income of $8.9 million for the 2000 quarter. Of this decrease, $3.5
million is attributable to Peruvian operations. The increase in U.S. loss from
operations of $6.3 million is due to the factors discussed above.

     INCOME TAX EXPENSE for the 2001 quarter reflects primarily the provision
for the Company's Peruvian subsidiaries. As a result of the Company's tax
status in the U.S., the Company is not subject to federal and most state
income taxes.

     CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE relates to the
adoption of FAS 133. See "Item 1. Financial Statements - Note 2 to the
Company's Consolidated Financial Statements" for a discussion of FAS 133.

                                       34
<PAGE>

RESULTS OF PERUVIAN OPERATIONS

     NET SALES for 2001 quarter decreased $12.0 million, compared to 2000
quarter, primarily due to lower realized prices for silver, zinc and gold and
lower sales volumes. Silver, gold, and copper sales volumes were lower in the
2001 quarter, compared to the 2000 quarter, reducing net sales $6.7 million.
Approximately 40% of the volume shortfall was due to a rockslide, which
interrupted transportation to the port, delaying shipments during the last week
of January. Transportation has been restored and these sales will be reflected
in the second quarter results. The remainder of the volume shortfall is
primarily due to the reduced production of silver and gold, discussed earlier.
The market prices of silver and zinc each declined approximately 10% in the 2001
quarter, compared to the 2000 quarter, accounting for a $6.7 million reduction
in net sales. These reductions were partially offset by increased sales volumes
of refined zinc and byproducts.

     COST OF SALES decreased $8.0 million, from the 2000 quarter to the 2001
quarter. The sales volume changes, discussed above, decreased cost of sales $4.7
million. The remainder of the decrease is primarily due to lower feed costs,
resulting from lower market prices for lead, zinc, silver and gold, partially
offset by lower treatment and refining charges.

     UNREALIZED GAIN ON DERIVATIVES relates to the change in fair market value
of derivative financial instruments pursuant to FAS 133. Gains for the 2001
quarter resulted from higher metal prices.

     INCOME FROM OPERATIONS decreased $3.5 million in the 2001 quarter compared
to the 2000 quarter due primarily to the factors discussed above.

     INCOME TAXES effective rate for the quarter of (66)%, compared to the
effective rate for the year ended October 31, 2000 of (19)% is due primarily to
the tax effects of FAS 133 and a change in the expected impact of inflation on
the Company.

     CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE - relates to the
adoption of FAS 133. See "Item 1. Financial Statements - Note 2 to Doe Run
Peru's Financial Statements" for a discussion of FAS 133.

LIQUIDITY AND CAPITAL RESOURCES

     The Company's liquidity requirements arise from its working capital
requirements, and capital investment and debt service obligations. The Company's
primary available sources of liquidity are cash provided by operating activities
and two revolving credit facilities. In the U.S., the Company has available a
revolving credit facility (the Doe Run Revolving Credit Facility) that provides
for advances by the lender to a maximum of $100.0 million less outstanding
letters of credit, based on specific percentages of eligible receivables and
inventories. As of January 31, 2001, $36.2 million was outstanding, exclusive of
$7.6 million of letters of credit, under the Doe Run Revolving Credit Facility.
On January 26, 2001, the Company entered into an amendment of the Doe Run
Revolving Credit Facility, which extends the term to January 15, 2003 and
establishes a reserve against calculated availability of $5.0 million. Excluding
the additional covenants described below, no other significant terms of the
original agreement were amended.

     In Peru, the Company has available a revolving credit facility (the Doe Run
Peru Revolving Credit Facility) that provides for advances by the lender to a
maximum of $40.0 million, less outstanding letters of credit, based upon
specific percentages of eligible receivables and inventories. In addition the
lender provides a separate line of $12.0 million for the issuance of guarantee
letters. The sum of the advances on both of these lines is limited to $42.0
million. At January 31, 2001, $32.0 million was outstanding under the Doe Run
Peru Revolving Credit Facility and $1.5 million, for guarantee letters was
outstanding under the separate line, described above. The Company also has
available, in Peru, unsecured and uncommitted credit arrangements and additional
availability related to letters of credit and customs bonds, provided by local
banks. At January 31, 2001 $7.5 million exclusive of $14.4 million of letters of
credit and customs bonds was outstanding under these arrangements.

                                       35
<PAGE>

     Net unused availability at January 31, 2001 was $12.0 million under the
Doe Run Revolving Credit Facility and $8.0 million under the Doe Run Peru
Revolving Credit Facility. In addition to availability under the credit
facilities, the Company had $4.9 million of cash at January 31, 2001. At
February 28, 2001 availability was $12.8 million under the Doe Run Revolving
Credit Facility and $7.0 million under the Doe Run Peru Revolving Credit
Facility, and the Company's cash balance was $10.2 million. On March 15, 2001
the Company made the interest payment on its senior notes, senior secured
notes and floating interest rate notes.

     In the 2001 quarter, cash used in operating activities was $3.7 million,
cash used in investing activities was $6.8 million and cash provided by
financing activities was $7.1 million.

     In the U.S., the Company had capital expenditures of $3.4 million for the
2001 quarter and has projected total capital expenditures of approximately $9.4
million for fiscal 2001, primarily to support ongoing operations and for
operational and environmental improvements. In addition to these capital
investments, the Company's U.S. operations expended an average of approximately
$71.0 million per year on repairs and maintenance from fiscal 1996 through
fiscal 2000. As a result of these expenditures, the Company believes that it
operates and will continue to maintain modern and efficient facilities.

     As part of the acquisition of its Peruvian operations, the Company has
undertaken a capital investment program, in part to satisfy an investment
commitment of $120.0 million as set forth in the purchase agreement. For
expenditures through October 31, 1999 Centromin has approved qualifying
expenditures under the investment commitment of approximately $58 million.
Additional expenditures for fiscal 2000 and the first quarter of fiscal 2001
have not yet been approved. Peruvian operations had capital expenditures of $3.4
million in the 2001 quarter and have projected capital expenditures of
approximately $13.7 million for fiscal 2001, primarily for environmental
improvements and to support ongoing operations.

     The Company has substantial indebtedness and debt service requirements.
As of January 31, 2001, on a consolidated basis, the Company had $521.2
million of indebtedness outstanding, or $396.2 million net of - the Special
Term Deposit made in a foreign bank as collateral for a loan made to Doe Run
Mining, securing indebtedness of a like amount. The Company has recently
developed projections for fiscal year 2001, which include the changes in
mining and primary smelting operations, discussed previously in "Results of
Operations". These projections indicate that liquidity should be adequate
during fiscal 2001. However, if metal prices, premiums or treatment and
refining charges decrease from current levels, these declines are likely to
have an adverse impact on liquidity. Changes in operating results, such as
production interruptions or less than expected ore grade could also adversely
impact liquidity. Management will monitor liquidity closely and will
reevaluate capital, exploration and maintenance spending levels and consider
further changes in operations in order to maintain sufficient liquidity. In
addition, the Company is currently pursuing various financing alternatives in
an effort to improve its ability to meet working capital and capital
investment requirements while maintaining sufficient liquidity and financial
flexibility. There can be no assurance that the pursuit of these alternatives
will be successful.

     The Doe Run Revolving Credit Facility, the Doe Run Peru Revolving Credit
Facility, and the indentures governing the Notes contain numerous covenants and
restrictions. The more restrictive covenants included limitations on allowable
indebtedness and maintenance of a minimum net worth, as defined, a limitation on
capital expenditures in the U.S. and requirements for earnings before interest,
taxes, depreciation, depletion, amortization and adjustments made in accordance
with FAS 133 (EBITDA) in the U.S. The indentures covering the Company's senior
notes, senior secured notes and floating interest rate senior notes limit
principal outstanding under various Peruvian working capital facilities to $60
million. The Company was in compliance with all applicable covenants at January
31, 2001.

                                       36
<PAGE>

     The ability of the Company to meet its debt service requirements and to
comply with these covenants is dependent upon future operating performance and
financial results, which are subject to financial, economic, political,
competitive and other factors affecting the Company, many of which are beyond
the Company's control.

FORWARD-LOOKING STATEMENTS

     This report includes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 which involve known and unknown
risks, uncertainties and other important factors that could cause the actual
results, performance or achievements of the Company to differ materially from
any future results, performance or achievements expressed or implied by such
forward-looking statements. Such risks, uncertainties, and other important
factors include, among others: general economic and business conditions;
increasing industry capacity and levels of imports of non-ferrous metals or non-
ferrous metals products; industry trends, including product pricing;
competition; currency fluctuations; the loss of any significant customer;
availability of qualified personnel; effects of future collective bargaining
agreements; outcome of litigation, and major equipment failures. These forward-
looking statements speak only as of the date of this report. The Company
expressly disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statement contained herein to reflect any
change in the Company's expectations with regard thereto or any change in
events, conditions, or circumstances on which any such statement is based.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

     The Company has outstanding $55 million of floating interest rate senior
notes on which interest is payable based on the six-month LIBOR rate plus 6.29%,
reset at each interest payment date (March and September 15). The Company has
not hedged its risk with respect to fluctuations in the LIBOR rate. At January
31, 2001, the effective rate was approximately 12.23%.

     In the normal course of its business, the Company has used in the past, and
may use in the future, forward sales commitments and commodity put and call
option contracts to manage its exposure to fluctuations in the prices of lead,
copper, zinc and silver. Contract positions are designed to ensure that the
Company will receive a defined minimum price for certain quantities of its
production. Gains and losses, and the related costs paid or premiums received
for option contracts which hedge the sales prices of commodities are recognized
in net sales when the related production is sold. None of the aforementioned
activities have been entered into for speculative purposes. See "Item 1.
Financial Statements- -Note 6 to the Company's Condensed Consolidated Financial
Statements" for additional disclosures regarding these activities.

PART II. OTHER INFORMATION.

ITEM 1. LEGAL PROCEEDINGS

     No developments since Form 10K filed January 29, 2001.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a)  EXHIBITS.

10.5.7    Amendment No. 5 to Loan and Security Agreement dated January 26 2001
          by and among the Doe Run Resources Corporation, Fabricated Products,
          Inc. and Congress Financial Corporation (Incorporated by reference to
          the exhibit number in Form 10K filed January 29, 2001).

(b)  Reports on Form 8-K

     None filed during the quarter reported on.

                                       37
<PAGE>

                               S I G N A T U R E S


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                      THE DOE RUN RESOURCES CORPORATION
                                      (Registrant)






     March 16, 2001                   /s/ Marvin K. Kaiser
     --------------                   ------------------------------------------
         Date                         Marvin. K. Kaiser
                                      Vice President and Chief Financial Officer
                                      (duly authorized officer and principal
                                      financial officer)



                                       38