TKO hedges TKO will receive a minimum of $3.61/lb for all of their remaining 2011 copper production. 90% of the Company's 2012 copper production, ensures a minimum selling price of US$3.50 per pound. With the POC hitting $3.30 on Friday. TKO took some flack in May and June for hedging, with copper prices near $4.50, why would you hedge?
Russell Hallbauer, President and CEO of Taseko, stated; "This hedge transaction was implemented to mitigate margin risk, as we have seen ongoing volatility in commodity prices over the past six months causing heightened concerns on copper price stability. The 2012 put options, combined with the remaining 2011 put options, guarantees the Company's revenue stream for the next 18 months. This security allows us to bridge into Taseko's roster of future opportunities without the risk associated with a significant reduction in copper prices."
Re Q3 results. There was 9M lbs of CU,$36M, at the dock in the port of Vancouver, TKO's portion that was not loaded on to the ship on time for Q2 that will be included in Q3. The rampup at Gib was in the 55,000 t/d range for most of the 1/4. Q3 will prove to be a breakout 1/4 for TKO with their SP under $3
Cashed up with $400M, gee isn't that 2/3 of their MC right now. Few other copper miners had the foresight to hedge their bets
"With numerous near-term projects in the pipeline, including Gibraltar Development Plan 3, advancement of the New Prosperity Gold-Copper project and completing the feasibility level evaluation of our Aley Niobium project, we believe it is prudent to secure the revenue stream on our Gibraltar production to ensure these opportunities can be fully realized."
Be Right and Sit Tight.