Taseko Mines Ltd T.TKO

bingo!!

[nofluff]

Copper. 4.7520.  Five dollars, here we come:))

I think I will take Chantelle out for a teenburger today. I have cupons.

nf

[JCSunsfan]

 BB.  Said in the conference call that in order to offset the cost of the $4 puts, they also sold $5.60 calls.  He said if those calls are exercised it would be a really good situation.  Still, any chance they will regret selling $5.60 calls?  Could we see $6 copper by next May?

[nofluff]

We could see 6.00 and higher copper. So lets say they offset puts 100%. I am going by memory here. But I think tko spent 5 million on about 40 million pounds 1rst half puts. So they gambled the future a bit. Lets say copper averages 6.00. That is 16 million u.s. or 20 million cad lost.  But lets say the energy shortage carries on and copper averages 8.00 u.s. Tko leaves 100 million on the

[JCSunsfan]

It's not a gamble.  It is being unnecissarily conservative.  What is fairly clear to me is that while Taseko brass speaks of copper prices very enthusiastically, they tend to think of those same prices much more conservatively than we do. They buy puts, they sell calls.  Good grief, even the stats on their power points are still based on $3 copper.  Can't understand

[nofluff]

Bottom line is this. At 5.70 copper, tko collared there shareholders share price. We hit above that and cmmc, cs, and ncu fly to the moon. Tko idles along until h1 is over. But 5.70 copper will give sh 5.70 cad sp. So why complain. Just that the other miners go much higher. Of course I believe cm made some vows with tko. So he stays for better or worse)) Me. Never even invested in a promise

[JCSunsfan]

[JoeStockIQ]

All this talk about $5+ US copper is a waste of time. This current spike is temporary, obviously due to speculators jumping in hard because of current supply chain hype. Not saying a true issue there doesn't exist but it is temporary. Then, the first minute decent shipment amounts arrive to the various exchange warehouses, the price will fall quickly back to the $4 range. Enjoy the spike while

[firecracker74]

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[nofluff]

6.00 is no game changer fc. But 8.00 is. I understand the puts insurance. That is a hedge to protect bottom end. But to hedge against the hedge is just irrisponsible.  I would venture to guess that the put seller was the same entity as the call buyer. nf

[nofluff]

Personally I hope copper goes to 15.00 and they leave  500 million on the table. I have much unhedged corps to take those winnings home. nf

[JCSunsfan]

 And if it goes to 15, they will still be making money in q3 and4 next year.   The calls just do not seem necessary, but I am not sure what the puts cost them.  They were just offsetting the cost of the puts with the premium from the calls. I assume it allowed them to get higher puts.  This is all about having the funds to build out Florence.  They sacrificed some

[nofluff]

Bad accounting anyway u look at it j.c. My entire 6 figures is now swing. The call sell was in no way needed to secure flor. The put was. A long way to go, to get to 5.70. But maybe not if we are truly short copper. With flor and gib buildout and 5.70 copper, tko should b a 10.00 bill. Flor and gib buildout and copper price are wildcards. Right now. Looks like they r 3 aces in a hole. nf

[JCSunsfan]

It depends.  How much did they net from the calls?  How much did they pay for the puts?  How much of their production did they encumber with the calls they sold?  If they did at all.  Did the calls they sold actually encumber production or are they just using calls as a financial mechanism?   Copper will probably have to be well above $6 since they have the

[nofluff]

What is the premium u speak of jc

[JCSunsfan]

They sold calls,  the buyer of the calls pays a premium for those calls.  Just like when they pay a premium to buy puts. A premium is just the cost of a call or put. 

[nofluff]

o.k. jc. So the premium ofset the cost of the put. That means they broke even on the put.but left the loss on the call with no cap. This, all the while, that the world is electrifying!!!    Nf

[JCSunsfan]

Exactly.  At least it is a short term gamble. 

[nofluff]

Thanks for admitting it was a gamble.Odds were against them. If they really believe they are money market people. Why mine? Just play puts and calls. Of course time will tell how bad or good the call was. The pp probably set us back about 2.00 a share. I am guessing this will do the same. This is not about mining. Just bad accounting.  I would not b so vocal if I had not said anythingbon

[JCSunsfan]

Yep.  Looks like we got the puts for free as long as copper does not break $5.70.   Here I go again--$5.70 US or CAD?  I have been thinking US.  Whenever they talk about copper prices its in USD. 

[nofluff]

Eye think u.s. jc.  I have to go feed steers.  nf

[nofluff]

To answer some of your qs. They encumbered almost all production. Bb said calls were an off set against put cost. So I will guess even steven. Anything else if not clarified would b fluff. Until I c different, 5.70 copper in h1 2022 is a very big fundamental on my swing trades.  Perhaps stu will clarify on con call. Hi copper is only negative to other unhedged corps. As miner pointed. Our

[Fishbillion]

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[nofluff]

So analyst is saying lme is down to 14 thousand tonnes. Which is empty. They said there is hope some may sell back without taking delivery. A survey though shows builders and factories are waiting on copper products. The analyst says if 5.00 is breached, it quickly goes to 7.33. So if it hits there nov. 1. Tko gets full benefit for 2 months. Then leaves 100 million on the table at 7.33. It is