Looking aheadSo. Let's just assume that the permit comes and Florence get's built and runs at full capacity. What kind of income generation would that be and what type of market cap should that generate?
BTW. All USD amounts here.
The mining world seems to run between a 7 and 10 multiple for a PE. It's lower than most industries, but dems the berries.
Let's assume a $4/lb copper price. Don't want to be too optimistic or pessimistic.
Florence is projected to produce 80 million pounds of pure copper cathode per year at a C1 of $1.10. That is $232 million per year EBITDA.
Gibralter is projected to produce 120 million pounds per year at a c1 of $2.50 or so. That is probably to optimistic. Let's call it $2.75. That is $150 million per year EBITDA. Of course, Gib is only 75% owned by Taseko so that drops to $112 million. (You see what a difference Florence is).
Assume other costs will eat up $100 million or so per year. Maybe more. You do your own guessing. That would result in $244 million per year earnings. At a 7 PE that would be a market cap of $1.708 billion and at a 10 PE of $2.44 billion.
I think these numbers are very conservative. Present market cap is $332 million.
Conclusion. Finished Florence should produce somewhere between 5 and 7 bags in SP.