Taseko Mines Ltd T.TKO

closed

[nofluff]

Oh boy!!

nf

[JCSunsfan]

From Russ.  "Capital requirements for the commercial production facility are estimated at US$230 million," added Mr. McDonald. "We continue to advance discussions with potential joint venture partners, but with our strong cash balance and improved Gibraltar cash flows from copper prices that are currently over US$3.70 per pound, we have numerous

[JCSunsfan]

Pricing today will be interesting.  Companies are required to fax news releases to the exchanges BEFORE public release of information.  That little window of prior information is usually reflected in sp. 

[nofluff]

My concern is jv. If a good partner was taken I would 50 cents u.s per pound bought would be fine. That would give them carried to production deal. So 10% is 200 million pounds. So 100 million u.s. bucks for 10% That would give us cash for np and ymi 2021. We would just bank gib cash. Anything less and I will be substantially ticked.  nf

[CdnScorpion]

Well, at this point, with Start syaing they have about US$200 million sitting in cash and US$230 million to build, why would we even consider a JV? Start building now and as long as prices remain 3.50+ we'll make the final amount pretty quickly. This is what I have been hoping for, financed with debt and earnings, no JV, no further dilution.

[nofluff]

I agree cdn. But the fact that they still mention jv tells me it is going to happen.  nf

[CdnScorpion]

I am kind of zeroing on part of "We continue to advance discussions with potential joint venture partners, but with our strong cash balance and improved Gibraltar cash flows from copper prices that are currently over US$3.70 per pound, we have numerous options available to obtain the remaining funding."

[JCSunsfan]

That is reason for optimism.  It indicates that they know they are negotiating with JV's from a position of strength.  We will see how well they use that leverage in negotiations. 

[JCSunsfan]

One of the stipulations of a bond issue is retaining a certain amount of liquidity in cash.  They have to maintain some of that cash horde to satisfy those demands.  I haven't seen the actually terms of the bond issue, but its typical.   So, a JV would be helpful to get online sooner.  However, they can build based upon cash flow, it would just take more time, and