EconomicsLook at NG and the shut down of their project, now look at TKO, a full paid for mine with a 20 year mine life at 130 million lbs year. Do we really need what a great asset, the mill is almost new now.
All that cash is going to be generated by this project, and it is only about 3 weeks until they will generating hords of cash. Cheap power is also a significant benifit to this project.
It is great to have a galore creek, however it seems to me that teck may have got fooled on that one and now they are rewritting the entire agreement, in my opinion.
TKO will take it time and not destroy the balance sheet however I would expect a significant improved in price over the next 3 months.
As a side not however could the economics of NG project of changes so significantly in the last 3 months or what ever, why is Teck prepared to eat their bad investment to date? maybe the entire truth is not out regarding that project? IMHO