Sleeping copper assets - how much are they worth?Dear Teck,
How is it possible for your shareholders to properly decide if they want to split the company or not without all the information?
Two of your best copper projects in the pipeline (Galore & Shaft Creek) don't even have a NPV attached to them at this time.
From my perspective and with current metal pricing, each one of these projects could be worth several billions!
With very low recoveries and conservative thoughtput assumptions, per the Copper Fox Metals (25% ownership) PEA published in 2021, Schaft Creek could today be worth around $2.4B US. See below details. - $842M US - base case after-tax NPV (8%) for 100% of SC
- add $768M US for LT copper at $4.00 US (per tornado chart)
- add $530M US for LT moly at $20 US (per tornado chart)
- add $267M US for LT gold at $1800 US (per tornado chart)
With minor improvements, that value could increase even more, but unfortunately, the development of this project has been dragging for years.
What's the value for Galore? What's the plan? Nobody knows.
If these two projects only are worth 5-6-7B US, would it not be in your best interest to let your shareholders know before the vote?
MoneyK