Taseko Mines Ltd T.TKO

Thoughts on Q2 Report

[JCSunsfan]

Negative surprise with a -.06 per share loss which computes to $16.098 million.

However.

July collars netted $15.2 million after Q2 end. 
$27 million was spent on Florence CAPEX.  Not sure if that is just a balance sheet transfer or comes out of expenses. 

Lower production than anticipated at Gibralter.

[nofluff]

If the july collars netted 15 million cad, then headgrade had to be enormous. nf

[metalhead666]

Is it possible for a living thing to be as stupid as you are?  What's the probability?  1 in a trillion? Has to be at least that great.

[metalhead666]

"The mill operated at design capacity in the second quarter, but lower head grades contributed to lower recoveries, resulting in copper production of 21 million pounds." You truly are the most stupid human being I've ever encountered....ever.

[metalhead666]

No need to read a word eh stupid?  Silly words. See Spot run, run Spot run.... "Head grades averaged 0.17% which was lower than expected due to the complexity of the ore zones mined in the upper benches of the Gibraltar pit resulting in higher than normal mining dilution." Gibraltar is a giant hole in the ground....nothing more.

[cwDeici]

That's a bit harsh. They certainly make mistakes, but it's the EPA and NIMBYs that are a hole in the ground (I hope they starve). 

[cwDeici]

Unfortunately they live in non-communist economies, but at least we can take some joy in actual full-blown communists who voted in communists in their own lifetime starving in Venezuela. remember to donate to the Ukrainian army! also lithium going bonkers lately :3

[cwDeici]

Lithium going bonkers this month btw, I'm almost back up to my ATH on April 1-4. color me optimistic, but I think you'll get your permit sometime this year, and Florence will take some time to set up, and copper prices should stay well above its break even cost.   

[cwDeici]

Well, 2022-23 production start date lithium juniors. Tech stocks also doing good. I'm thinking about nickel as another battery metal to invest in, but I think I'll just slowly shift towards tech stocks over the next few years (mostly in 2025). 

[JCSunsfan]

Please explain. 

[nofluff]

lets say copper was 3.20 u.s average. The collar would b 1.00 cad oer pound. To net 15 million cad. they would have produced 15 million pounds. nf

[JCSunsfan]

I thought I read that they produced 9.7 million pounds in July, but I cannot find it in the report now. 

[lucky1215]

It's 9.5 million pounds.   Appears in the 4th paragraph of the earnings release you posted below.  

[JCSunsfan]

Yes.  And they expect that to increase in august and Sept.  so maybe 31 million pounds in q3.  Florence costs are going to cut into cash on hand going forward.  Spending $27 million for buildout now show strong confidence in permit approval and will cut build time. Still over $3 in cost of production is really high.

[cwDeici]

They're building out Florence? That's great! Just underlined their confidence in eventual approval.  Tesla and Lithium Americas have been doing this too. 

[JCSunsfan]

Listened to the conference call.  They cashed out their July puts and recast for the rest of the year at $3.75 rather than $4, taking the $15 million cash now.  That's a bullish position on copper, expecting the prince to increase over the second half of the year.   I agree with that move. In effect they took an advance on the value of the puts for the second half of the

[JCSunsfan]

So outlook for Q3.  More production expected, also they have done extra drilling to confirm.   There will be a financing payment in Q3. An extra $15 million from the puts will be realized in Q3, maybe more.  C1 in Q3 is expected to be around $2.20/lb rather than the $3 plus in Q2. EPA is now telling them the permit should come the week of the 14th of August, but that is only

[nofluff]

good sluething jc. All makes sense. nf

[JCSunsfan]

Well, I was going to buy 20k more this morning (TGB @$1.01) but I woke up and had missed the dip.  Oh well.  Can't be greedy.

[nofluff]

I chose to buy the bwcg sale this morn.  nf

[metalhead666]

The multi year low sale you paid 3x for all year?  Like the multi year low NCU stock you bought millions of shares of before it hit yet another multi year low?  That sale?

[JCSunsfan]

I think we are seeing the beginning of the Florence permit bump.  Based upon the CC I believe investors are believing that we will move into the public comment stage in the next few weeks.  I would not be surprised to see a "sell on news" situation. 

[metalhead666]

Another "sale" going on....new multi year lows!  Well done Gump! 

[Returns2021]

JC is delusional as always