RE:RE:The Creaking Floor I think BB was correct in the most recent power point presentation on youtube. The market has almost completely discounted Florence and TKO is trading almost solely on the value of Gibralter. However, Florence will more than double Tasekos EBITDA because of the low cost of production. You would think that it permit approval would at least double the market cap--at least ramp up to that.
This is a beaten down stock as it has hung in limbo for 2 years--really since the State of Arizona approved the injection permit. The reason it is beaten down right now is BECAUSE of the permit. Those who are paying attention know that this company has invested A LOT in prepaid capital expenditures based upon the expectation of the permit. Engineering, planning, long lead purchased equipment and more. All that is lost if the permit is not approved. So at the moment, some see the permit dragging on as a danger, not just a waiting game.
Still. It is hard to imagine how this permit could be denied. It is not like other cases where permits were denied because they were controversial. There has been no controversy. The only true opposition was the City of Florence and the city did a 180 reversal going from opposing to supporting the project after the test facility proved successful (and elections).
The coalition included the Sierra Club sent a letter of concern, but not really opposition, and they oppose everything. And their letter was cut and pasted from their comments on Excelsior's project.
There has been no concern expressed from the EPA to Taseko. Everyone in the State is for it, and it is on private land, not public land. I just cannot see how this cannot pass. But we are Taseko stock holders. We remember New Poverty . . . er . . . I mean Prosperity, and we still sting from that one.
For most investors, this is a show me moment. They will jump in when approval is granted. I am hoping for a dramatic result. It should be.