Galore Creek vs Schaft CreekDear Teck,
I love the way you're transforming the business to be more copper oriented.
In your recent presentations, Galore Creek is listed as a medium term option and Schaft Creek as a future potential.
When looking at both projects side-by-side:
- Galore Creek: 230 ktpa, C1 cost between $0.65 US and $0.75 US and capex was estimated around $5.2B CA back in 2011.
- Schaft Creek: 161 kpta, C1 cost between $0.60 US and $0.70 US and capex was confirmed at $2.65B US in 2021.
From the above, I would tend to think that:
- Schaft Creek could provide lower capex intensity for each pound of copper produced
- Schaft Creek could offer better margins
- Schaft Creek also seems better situated (possibly less operational risks)
Teck currently owns 75% of Schaft Creek, with the possibility to acquire 100% vs. a 50% ownership for Galore Creek.
Would you not prefer to provide shareholders with possibly 75% to 100% of Schaft Creek's EBITDA vs. 50% of Galore Creek's EBITDA?
Since Schaft Creek & Galore Creek would most likely share some roads, bridges, etc,. advancing both projects at the same time could be an idea, but I see absolutely no reasons to leave Schaft Creek behind. Do you?
In my opinion.
MoneyK