AGMI attended the AGM for Taseko.
It was very well run - not the usual orchestrated AGM where the meeting matters were rammed through in 56 seconds. They seemed sincerely interested in getting discussion from the floor. There was a guy there who seemed to be representing a mutual fund, but I didn't get which one.
Everything passed EXCEPT the request to increase the authorized capital consisting of unlimited shares. (Got approx 65% approval but needed 75%) The other requests - adoption of new articles barely passed at 77%, General Authority to issue shares and increase capitalization got 78% (needed 51% to pass that one) and the Share Option Plan passed as well.
They discussed some of the problems that they had been having with the mine start-up - mostly to do with aquisition of materials. Since there is a comodity boom on right now ALL the mines are starting up and purchases are difficult to find as well as costly. For instance those huge tires on the ore trucks take 6 months to order because there is such as shortage. Originally the plan for the Brenda mine was to use a significant amount of second hand equipment - but nothing but rubbish was available - anything good had already been scooped. This significantly impacted their startup costs. Their most expensive new purchase was the mine shovel which they had been confident that they could buy used, but were forced to buy new. Fortunately they had tentatively "tied up" an order for a new one while they looked for a used one. If they hadn't done that, the delays in start-up would have been significant as to get a new shovel now is (I think they said) was over a year. They said it was difficult now to even aquire transport barges because of the commodity boom.
The mill is operating generally at 95%.
They have a burn rate of about $6M @ month. They received tons of angry calls regarding the last pp which they used to raise capital so that they would have and extra 1.5 months of working capital in the bank.
They didn't want to go to the bank for this financing because the bank would require them to hedge their copper prices (sell forward) and they didn't want to lock themselves in because they are bullish on copper prices. They do have agreements in place to sell their copper, but only the tcrc (treatment charge/refinery charge) is set. The copper price will be market.
They are anticipating extra business from the refinery when it is up and running because a)there is a convenient railway that runs by the refinery and Mount Polly has approached them to do work as well. They are anticipating the refinery would be financed 25 - 30% equity vx. debt and would take approx 24 - 30 months to permit/build.
They also discussed some financing that they got from Red Mile. It involved 0 dilution of shares but managed to raise 10M capital. It involves a "super royalty" that kicks in when copper reaches $2.50 lb. They also have the right to buy back this royalty if they want. (Didn't understand this agreement as I am still a newbie at this)
Hope you find this interesting.
Regards,
MystressM