Taseko Mines Ltd T.TKO

inflation coming

[nofluff]

2 trillion u.s. stimulus package with minimum wage double. If true, u do not want 2 b sitting on cash.

nf

[marketsense]

That's exactly what Livermore Fund said on BNN this morning.  He is long gold and commodities. and prefers the samller cap names in these sectors becasue they are more undervalued but have higher beta in an inflationary environmment,  He also said he was expecting a lot of M&A activity so names like TKO with a relatively undervalued price but a large portfilio of 

[fishmillion]

A fully developed florence at 85 mill lbs/ year should generate 120 million in fcf. Thats implies a value for flo of about 1.70/sh can. This is running at nameplate and at 100% ownership... current fair value of all of tko is about 1.75/ sh.. so a takeout offer of 2.25 should be enough to get tko...

[Notgnu]

fish, could you provide a quick overview of the $120 m fcf? I though ISL was cheaper in both capital intensity and OPEX so should the 85 m pounds per year not be X's about $2.00 to $2.20 cf/lb at $3.60 copper thus $170 m to $190 m fcf? N

[fishmillion]

Were close snots... i used 3.5 copper, less 20 million for financing charge, then 20-30 mill for sustaining capitial, initial tweaks ect... there is the tko factor i never put in but ususlly is needed tho... lol

[Notgnu]

Cheers. Makes sense. Seems well on the conservative side but probs good to look at it that way. N

[Little4Less]

If min wage doubles this year in US, unemployment will spike and jobs will once again go out of the US.  Purchasing power will disapate and the stock market will tank.

[fishmillion]

Im sure the chinese will keep buying copper

[marketsense]

We'll see about that.   When people have money in their pockets,  they tend to spend,  not save.   The other caveat is how effective the Biden administration will be in combatting the corona virus.   If they can get a better handle on it,  the US  could get into economic  recovery mode which would counteract your rise in unemployment  thesis.  

[JCSunsfan]

We are trying to solve this in our typical US way--throw money at it.  People are not spending because the things they typically spend money on are unavailable to them--no vacations, cruises, pro sports, movies, concerts, etc.  So now they are trying the new Las Vegas--the stock market.  How else can you explain Tesla, which makes 500,000 cars annually being valued higher than the

[nofluff]

Based on current commodity prices that would b true. The double would likely b a phased in thing. The gov. would b doing lots of employing.  Hi end jobs today r being phased out. Ai is taking those. So a few hi end jobs left to administer ai. After that, u have your laborors. They woukd b availanle in droves. All about inflation. nf

[nofluff]

To illustrate. 10 years ago an oilfield field operator contractor made net 120 thousand dollars per year in canada. He got bonus for keeping production up. Today ai decides hiw to keep production up. So operator just follows instruction. Net today for operator is 60 thousand. That is 50% reduction and 50% inflation. Example 2. When I was a kid, I came back from a euto your completely broke

[JCSunsfan]

Doubling the minimum wage is a tax on the middle class for the benefit of the lowest rung of workers.  It demotivates the drive for educational advancement since college grads and high school grads are going to be making the same salaries.   Inflation is almost unavoidable with all the stimulus talk--unless productivity and technological advancement negates it.  Money is just

[sclarda]

JCSunsfan wrote Doubling the minimum wage is a tax on the middle class for the benefit of the lowest rung of workers.  It demotivates the drive for educational advancement since college grads and high school grads are going to be making the same salaries.   Inflation is almost unavoidable with all the stimulus talk--unless productivity and technological advancement negates it

[fishmillion]

Well stated Sclarda