RE:RE:RE:bingo!!nofluff wrote: We could see 6.00 and higher copper. So lets say they offset puts 100%.
I am going by memory here. But I think tko spent 5 million on about 40 million pounds 1rst half puts. So they gambled the future a bit. Lets say copper averages 6.00. That is 16 million u.s. or 20 million cad lost.
But lets say the energy shortage carries on and copper averages 8.00 u.s.
Tko leaves 100 million on the table.
I remember shaking my head on that one in expression on this forum. The puts were good insurance at the time. The calls were straight out gambling.
Stu will b hoping copper does not run past 5.70. The pp was a big mistake.
The collar might be bigger.
nf
It's not a gamble. It is being unnecissarily conservative. What is fairly clear to me is that while Taseko brass speaks of copper prices very enthusiastically, they tend to think of those same prices much more conservatively than we do.
They buy puts, they sell calls. Good grief, even the stats on their power points are still based on $3 copper. Can't understand that one. Why keep using the same power points over and over. Update the numbers to match current reality.