Comment by metalhead666on Feb 11, 2025 9:23am
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Post# 36447571
RE:Nice update...what's not to like?
RE:Nice update...what's not to like?Comment from CEO.CA
Had to buy a few, too. First ERO purchase ever! In their Q3 comments, Scotia really cut back their estimates. Quote: We now forecast more modest 2024E-26E Cu output of 45kt, 87kt and 93kt (vs 53kt, 97kt and 93kt previously. Subsequently, I see that Scotia has further trimmed 2025 expectations - now at 80kt. I like to run a comparison with another producer. I use Taseko which has a market cap of about $915 million and debt that is ballpark proportional to ERO I think. Less than US$300 million, if memory serves. TKO is supposed to produce 120-125 million pounds in 2025, so about 56 or 57kt. Then their 80 million pound per year Florence project begins to kick in, which after a year(?) of ramp up should see TKO produce about 200 million pounds (91 kt) in 2027. In 2026 it'll probably be in the vicinity of 75kt. Bottom line: if you like ERO, and I think most here do, you should really like Taseko also. This time next year, TKO should be approximately where ERO is today. You would expect the market cap to go up from $915 million to the general vicinity of C$2 Billion.