RE:RE:Building FlorenceJoeStockIQ wrote: JCSunsfan wrote: Ok. There is an elephant in the room we have not discussed. I live in Arizona. Construction costs are soaring. I am trying to build a custom home right now and costs are running 75-100% more than they were three years ago.
CAPEX for Florence is soaring as the EPA dithers. For Taseko to claim that the CAPEX is not substantionally more than the $230 million planned two years ago is just plain not reality. Construction is taking much longer as well.
$4.50 copper @ 100M solves that issue for the most part. Has inflation hit well drillers? Other than higher energy, shouldn't get too out of hand. Using a $2.35 US All In cost at Gibraltar and $4.35 copper is going to generate roughly $200M, give or take. Heck, lop of another 10% and call it $180M. Say Capex rises to $260-$270M. They'll be fine.
You really need to consider a CAPEX in the range of $350 million. I think they can still get it built, but it will take more financing.