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Exhibit 99.3
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS  (US dollars, in accordance with Canadian GAAP)
    Forward-Looking Information
   www.sedar.com
 1




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Corporate Structure
 Canada Business Corporations Act.
  2006 Company Highlights
   2




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3




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Subsequent Events
    4




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Overview
     5




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Pre-Feasibility Study and National Instrument 43-101 Technical Report
   Capital Costs
 $ millionsMine capital cost
    
    $
    231.8Direct capital cost
    
    
    784.2Indirect capital cost
    
    
    242.8Owner, tailings and SX-EW (Solutionextraction/electrowinning) capital cost
    
    
    265.2TOTAL
    
    $
    1,524.0
 Operating Costs
   6




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Reserves and Resources
  Cautionary Note to United States Investors Concerning Disclosure of Mineral Resources
  U.S. investors are cautioned not to assume that all or any part of Measured Mineral Resources,
Indicated Mineral Resources, or Inferred Mineral Resources will ever be converted into reserves.
U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral
Resource exists, or is economically or legally mineable.
   7




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Toromocho Project
Mineral Reserves and Resources as of March 20, 2006
 Total Mineral ReservesTotal Cu
    
    Moly
    
    Silver
    
    
    EquivalentCategory
    
    
    Ktonnes
    
    %
    
    %
    
    gm/t
    
    
    Copper %(6)Proven (2)(3)
    
    
    
    465,384
    
    
    
    0.57
    
    
    
    0.021
    
    
    
    6.54
    
    
    
    
    0.80Probable (2)(3)
    
    
    
    909,571
    
    
    
    0.48
    
    
    
    0.016
    
    
    
    7.33
    
    
    
    
    0.67Proven + Probable(4)
    
    
    
    1,374,955
    
    
    
    0.51
    
    
    
    0.018
    
    
    
    7.06
    
    
    
    
    0.71
 Mineral Resources in Addition to ReservesCategory
    
    
    
    
    
    
    Total Cu
    
    Moly
    
    Silver
    
    
    Equivalent0.27%Eqcu Cutoff
    
    
    Ktonnes
    
    %
    
    %
    
    gm/t
    
    
    Copper %(6)Measured (2)
    
    
    
    64,049
    
    
    
    0.41
    
    
    
    0.013
    
    
    
    6.55
    
    
    
    
    0.58Indicated (2)
    
    
    
    537,212
    
    
    
    0.37
    
    
    
    0.016
    
    
    
    6.85
    
    
    
    
    0.57Measured + Indicated(5)
    
    
    
    601,361
    
    
    
    0.37
    
    
    
    0.016
    
    
    
    6.82
    
    
    
    
    0.57Inferred(5)
    
    
    
    151,000
    
    
    
    0.46
    
    
    
    0.010
    
    
    
    7.85
    
    
    
    
    0.61
 
 Notes:(1)
    
    The NI 43-101Technical Report complies with Canadian regulations. Mineral resource classifications are, in all material
respects, based upon the definitions of the Canadian Institute of Mining, Metallurgy and Petroleum, which appears in CIM
Definitions Standards  On Mineral Resources and Mineral Reserves dated December 11, 2005, as amended.(2)
    
    Metal prices for mineral reserves and resources; $0.90/lb copper, $6.00/lb molybdenum, $5.50/OZ silver.(3)
    
    Cutoff grades for mineral reserves vary over time and are based on
flotation cutoffs that range from $4.22 to $3.52 net smelter return per tonne and
leach cutoffs that range from 0.44% to 0.085% soluble copper.(4)
    
    Proven and probable mineral reserves under Canadian standards do not have demonstrated economic viability in the United
States and are not mineral reserves in the United States.(5)
    
    Measured, Indicated, and Inferred resources are not mineral reserves and do not have demonstrated economic viability.(6)
    
    Equivalent Copper on this Table is based on copper + 9.70 x molybdenum + 0.0007 x Silver ($1.00/lb Copper, $10.00/lb Mo,
$5.50/oz Silver). Heap Leach Ore receives no credit for Molybdenum or Silver content in the equivalent copper calculation. 8




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Mining
   Production
  Infrastructure
     9




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Next Steps to Development
         10




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Results of Operations
 For the Year Ended December 31, 2006
       Capitalized Expenses
  11




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Cash Flows
    Analysis of the Fourth Quarter 2006
   12




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Selected Annual Information
  2006
    
    2005
    
    2004Sales
    
    $
    0.0
    
    
    $
    0.0
    
    
    $
    0.0Loss for the Period
    
    $
    (3.3
    )
    
    $
    (3.4
    )
    
    $
    (0.3
    )Loss per Share  Basic and Diluted
    
    $
    (0.03
    )
    
    $
    (0.04
    )
    
    $
    (0.00
    )Total Assets
    
    $
    115.3
    
    
    $
    60.5
    
    
    $
    55.7Total Long-term Liabilities
    
    $
    0.0
    
    
    $
    0.0
    
    
    $
    0.0Dividends Declared
    
    Nil
    
    Nil
    
    Nil
 Summary of Quarterly Results
  13




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Basic and Fully-DilutedIncome (Loss) from
    
    Income (Loss) per ShareContinued Operations
    
    from Continuedand Net Income (Loss) in
    
    Operations and NetPeriod
    
    Revenues
    
    Millions
    
    Income (Loss)| | |4th Quarter 2006
    
    Nil
    
    $
    (0.9
    )
    
    $
    (0.01
    )3rd Quarter 2006
    
    Nil
    
    $
    (0.9
    )
    
    $
    (0.01
    )2nd Quarter 2006
    
    Nil
    
    $
    (0.6
    )
    
    $
    (0.01
    )1st Quarter 2006
    
    Nil
    
    $
    (1.0
    )
    
    $
    (0.01
    )4th Quarter 2005
    
    Nil
    
    $
    (1.3
    )
    
    $
    (0.01
    )3rd Quarter 2005
    
    Nil
    
    $
    (0.8
    )
    
    $
    (0.01
    )2nd Quarter 2005
    
    Nil
    
    $
    (0.8
    )
    
    $
    (0.01
    )1st Quarter 2005
    
    Nil
    
    $
    (0.7
    )
    
    $
    (0.01
    )
         14




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Liquidity and Capital Resources
 Cash
  Cash and Cash Equivalents Table
 2006
    
    Balance
    
    YieldCash
    
    
    5,241,896
    
    
    
    0
    %EquivalentsFederal Notes (a)
    
    
    30,396,503
    
    
    
    5.19
    %Provincial Notes (b)
    
    
    
    
    
    
    0
    %Cash
    
    
    11,518
    
    
    
    0
    %Total
    
    
    35,649,917
 2005
    
    Balance
    
    YieldCash
    
    
    9,550,369
    
    
    
    0
    %EquivalentsFederal Notes
    
    
    13,032,438
    
    
    
    4.11
    %Provincial Notes
    
    
    4,091,632
    
    
    
    4.33
    %Cash
    
    
    3,013
    
    
    
    0
    %Total
    
    
    26,677,452
 
 (a)
    
    Federal Notes are Canadian Government bonds or
Canadian Federal Crown Corporation bonds that are
issued and guaranteed by the Government of Canada.(b)
    
    Provincial Notes are bonds issued and guaranteed by
Canadas Provincial Governments.  15




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Expenditures
         16




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$3.72/share by 500,000 shares
 Outlook and Capital Requirements:
     17




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Contractual and Commitment Obligations:
  In US$ millions
    
    TOTAL
    
    2007
    
    2008
    
    2009
    
    2010
    
    2011Toromocho Option (a)
    
    
    30.0
    
    
    
    
    
    
    
    30.0CentenarioShareholders (b)
    
    
    6.0
    
    
    
    2.6
    
    
    
    1.7
    
    
    
    1.7Austria DuvazDebt (c)
    
    
    13.1
    
    
    
    3.5
    
    
    
    3.3
    
    
    
    2.4
    
    
    
    1.2
    
    
    
    2.7TOTAL
    
    
    49.1
    
    
    
    6.1
    
    
    
    35.0
    
    
    
    4.1
    
    
    
    1.2
    
    
    
    2.7
 Toromocho Option
  Centenario Shareholders
  Austria Duvaz Debt
  Foreign Currency Exchange Rate Risk
  18




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Litigation, Claims and Assessment
 Empresa Minera Natividad (Natividad) Claims
    Compañia Minera Argentum  Administration process of easement
    Revocation of Agreement  Minera Peru Copper S.A. (Minera Peru Copper) vs. Amalia
Subercaseaux Donoso de Bonifax y María Amalia Bonifaz Subercaseaux (the Subercaseaux Family)
  19




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Forward Sales, Options and Other Commitments (including Off-Balance Sheet Arrangements)
   Related Party Transactions
     20




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Critical Accounting Policies
        21




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Outstanding Share Data
  Common Shares
  Convertible Securities
  Disclosure Controls and Internal Control Over Financial Reporting
 Disclosure Controls and Procedures
  Managements Report on Internal Control Over Financial Reporting
  22




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Changes in Internal Control Over Financial Reporting
  Additional Sources of Information
 www.sedar.com www.perucopper.com
 Cautionary Notes to US Investors
    23