Taseko Mines Ltd T.TKO

Transcript

[spitfireIVX]

Taseko Mines Limited (TGB) CEO Russ Hallbauer on Q1 2021 Results - Earnings Call Transcript | Seeking Alpha

[spitfireIVX]

Concentrator expansion and drill program on the books: Gibraltar has a long mine life, predicated off its 500 million tonnes of reserves, but its resources are large as well with an additional 500 million tonnes. We are now planning a property-wide geophysics program, followed by a detailed drill program, to find out more about what we have and what the future may hold for the Gibraltar Mine

[JCSunsfan]

"At current copper prices, we're forecasting over $200 million of operating margin over the next 9 months. And if copper prices go higher, then so, too, will our margins." wow.

[JCSunsfan]

In response to Fish's "where did the cash go?" Posts. cash at the beginning of th me quarte (pro forma). $250 million. cash at the end.  $197 million. where it went. $27 million in receivables due to late payments.  Payment has now been made. $11 million on puts. $10 million on Florence capex. $10 million debt payment. undisclosed amount of capex on Gibraltar.

[JCSunsfan]

Also from this report.  They are still listening to Florence JV offers but now say they probably prefer to pay for and own it 100%.  They just do not need a JV partner and are only interested if it is "accretive."

[RobertC40]

why do you guys keep saying they spent $11 million on puts!! crazy

[JCSunsfan]

From the transcript: We ended the quarter just shy of $200 million. The working capital decrease of $27 million, which will reverse in Q2, accounted for about half of that use of cash. We also had increased CapEx at both Gib and Florence, and $11 million was used for the purchase of copper put options to protect our Florence price in the second half of this year. We also paid our debt service

[BlueBee]

No mention of the $15M Frasier River water treatment plant in the transcript.....part of the increased  CapEx at Gibralter?

[nofluff]

Yup! I am not a big fan of insurance. But sometimes the cost of doing business. It actually is 15 cents per pound cost. So that locked in 4.50 csd copper.  If it got us the flor capital and saved us a cheap jv, then it was straight out good business.  My guess is that we crack 3.00 cad on monday. nf

[JCSunsfan]

Yes.  I am not really speculating on the Florence connection because the cc specifically said the puts were directly related to the Florence investment.  The bank accounts should climb over the next quarter and the draw down as Florence is built.

[JCSunsfan]

My guess is that the puts were a condition of the bo d issue so that the cash to build Florence would be more or less guaranteed.  Lenders routinely make sure you are going to have the cash to finish a project  wrote they mill make a loan on it. just my guess.  That price seems a bit steep otherwise.  With more than 100 million pounds expected production foe the remainder

[KentWilkens]

Did they ever read up to what they paid for the puts, anywhere? I missed it, say someone on this board say it without reference, now you state as fact, but where does that info come from? KW

[JCSunsfan]

See my previous post.  I quoted directly from the transcript.  They paid $11 million.

[RobertC40]

geez there has to be an explanation you don't pay $11 million for put options....wrong wrong wrong.!!! Basically they paid $20,500 for 1640 put options with a 3.75 Strike. "If I look at it correctly it cost the company about 800K CAD,  meaning about 50% of the quarterly copper sales/output is coverered by the put options at a strike price of 3.75

[JCSunsfan]

Again.  They said it had to do with Florence.  They just cannot risk the copper market reversing--as unlikely as that is--and then not having the cash to build Florence.  This guarantees they will have the cash to build.  I think it was probably a condition of the bonds but that is just my speculation. I can see it in a special situation but not as a habit.

[nofluff]

I think u nailed it jc. Now we only get 4.60 a pound for 2nd half instead of 4.75. unless copper is at 6.00. Then we only get 5.75. Would have been better to sell 50% of flor for 200 mill right?? nf

[firecracker74]

This post has been removed in accordance with Community Policy

[JCSunsfan]

we better hope they expire worthless.

[JCSunsfan]

The puts are definitely a much better choice.

[JCSunsfan]

Here it is again. From the transcript: We ended the quarter just shy of $200 million. The working capital decrease of $27 million, which will reverse in Q2, accounted for about half of that use of cash. We also had increased CapEx at both Gib and Florence, and $11 million was used for the purchase of copper put options to protect our Florence price in the second half of this