"
The Gibraltar's generated cash for the last 15 years, and it's put us instead where we now can develop our pipeline and production. So if you look at it conceptually, we grow with Florence, we have 185 million pounds of production by 2023, a further 170 million pounds by 2025 once Yellowhead comes online for annual production of over 355 million pounds annually at roughly US$1.60 per tonne C1 cost. So if we look at all your guys' estimation, all your analyst estimations with copper ranging well above $3. As you can see, these are going to be pretty accretive reserves in the ground. So this does not include any consideration of where we may find ourselves headed on New Prosperity discussions with our First Nations firm."
Ok, so hypothetically, CU holds at 4.60 until 2025 (im thinking over 10), that makes $3 per pound profit @355M pounds. That is north of 1B per year profit within 4 years.
but there is more!
"Earnings this quarter continued to benefit from the recovering copper price, which averaged $3.25 per pound for the quarter. Taseko also had a further $8 million in upward provisional copper price adjustments (does anyone know what that is?) included in revenue has resulted in the average realized price of $3.69 per pound in our revenue."
"Florence has a net present value of $680 million based on our 2017 technical report using a $3 copper price. With funding substantially in hand and removing that CapEx in that model that increases the funded NPV of Florence up to $900 million or US$3.25 per share. And if I run that funded Florence model using $3.50 copper price, it's US$4 per share, and that today's copper price to $4.30 per pound, I see an NPV of US$5.50 per share. So there's significant appreciation potential in the near-term for our shareholders as we prepare to build and operate Florence"
this was good "We still think that the potential to maybe sell a minority stake at something based off of NPV, $700 million NPV or higher at today's prices, if we can do a very accretive transaction with a minority stake, then that's something we may consider doing. But if we don't get the valuation that we want, as you say, we have many other options to fund this and own it ourselves on a 100% basis.
So we're in a much stronger position today, obviously. And frankly, kind of looking back, we're glad that we didn't do a transaction last year, because we're in a much stronger position today and have many more options. So sometimes it's the deals that you don't do that work out well for you."
Now some may spin that the wrong way, but if you are or have had discussions with others on JV, it would be rude to just blow that away with "we are no longer considering it", and as they know, and the longs know, CU does not always go up, so in their style, they hedge their bets, but the wording of that indicates they COULD consider a JV if it was really juicy, but not necessarily at NPV 700M, (not likely), and I really liked the final sentence, "So sometimes it's the deals that you don't do that work out well for you".
some really good questions from those there, I liked this answer to the capex questions on expecting a higher capex for Florence "Russell Hallbauer
Greg, the more engineering you do, the better refinement you get on your cost. So, although we've been delayed with the permitting, and last year, certainly, the delay in the permitting, like Stuart said, certainly just blended into the whole where we were in the copper price cycle and that kind of stuff. But at the same time, we were refining our engineering studies and getting more details in terms of overall engineering costs. And when that happens, you can really focus in on your capital expenditures."
KW
KW