Taseko Mines Ltd T.TKO

Breakeven price of copper = $3.59

[AlfTanner]

I was disappointed by the earnings.  It looks like they earned US$21.8M on sales of 34.4M pounds of coper.  That is a profit of US$.67 per pound.  With the average price of copper at $4.26, that means the breakeven price of copper for Q3 was $4.26 - $.67 = $3.59

Even with a good quarter, the company needs $3.59 copper just to break even.  That seems pretty high.

[Cognition777]

Lotsa variables in there, Alf, that others have mentioned. - sold 2M lbs less copper than they produced = +$8.5M (they didn't sell 34M as you stated) - sold 50k lbs less moly than they produced - +$1M - bond interest is semi-annual, so half of this quarter's payment was accrued last quarter = +$9M - net "unrealized" loss on foreign exchange = +$2.7M those adjustments would have

[Cognition777]

wait... what am I thinking... 32.4M lbs was on 100% basis... Taseko sales 23.4M lbs... DOH! that would calculate $43M profit / 23.4M lbs sold = $1.84 profit per pound. Break even by your method would be $4.26 - $1.84 = $2.42

[JCSunsfan]

This is exactly correct.  That unsold copper is sitting in inventory and will turn into cash likely in the next quarter.  It might be smart to sit on some inventory as the market rises.  Accountants will always use those loss carry forwards for tax purposes.  It produces more of a loss on paper but keeps cash in the bank. I believe they have spend $30 million or so thus far on

[firecracker74]

This post has been removed in accordance with Community Policy

[AlfTanner]

firecracker, I am just going by what the company reported.  I understand the tax expense is a "one time" charge, but these small mining companies ALWAYS seem to come up with some kind of "one time" charge almost every quarter.  I am really getting tired of earnings that do not meet expectation because of some unusual write off.  A certain zinc miner is famous for