Fallout from the price of copperToday the price of copper is $2.30.
TKO has historically been plagued by high costs. TKO needs the price of copper to be roughly $2.50 to be viable. It might have money to repurchase stock, but why would it? This is not a fundamentally sound use of it's cash. It's share price is just reflecting Mr. Market's sentiment.
If the price of copper is <$2.50, TKO should shut down and wait for better prices. Right now it is costing more to pull the copper from the ground than it gets from selling it. TKO will be burning its cash trying to keep its mine running (even at a loss) because the startup costs and logistics are so horrendous. But if the recessionary market fundamentals remain in place - TKO is toast.
Comments anyone?