Taseko Mines Ltd T.TKO

RE:RE:There is just no story here anymore

[AlfTanner]

JCSunsfan, Taseko had adjusted net income of $6M in Q1.  The realized copper price was US$4.59 per pound.  Production was 21M pounds of copper, but Taseko only gets 75% or 15.8M pounds.

 

Profit per pound = $6M / 15.8M = $.38

Breakeven price of copper = $4.59 - $.38 = $4.21

 

According to Q1, Taseko needs $4.21 copper just to break even.  That is pathetic.  As usual, they claim that "grade and continuity of mineralization are expected to gradually improve as mining advances to deeper benches."  Maybe the mine is just running out of good ore.

 

In my opinion, things are going to get a lot worse before they get better.  The copper and commodity story is going to turn bad quickly if and when we enter a recession.  I have no intention of fighting the Fed.  We went over the fiscal and monetary cliff right at the start of 2022.  Rates continue to go up, the Fed is just starting quantitative tightening, and we have a potato brained fossil in the White House who is doing everything in his power to wreck not only the U.S. economy, but also the world economy.

I do not see any reason to hold any investments right now except gold.  I see no reason to ride investments over a cliff.  When the Fed starts giving signals that they are turning around, there will be plenty of time to buy back any stocks I like.  If you insist on holding, you might at least want to buy some puts that go out about 6 months to protect yourself against a potential wipe out.