Taseko Mines Ltd T.TKO

Building Florence

[JCSunsfan]

Ok.  There is an elephant in the room we have not discussed.  I live in Arizona.  Construction costs are soaring.  I am trying to build a custom home right now and costs are running 75-100% more than they were three years ago.

CAPEX for Florence is soaring as the EPA dithers.  For Taseko to claim that the CAPEX is not substantionally more than the $230 million planned two years ago is just plain not reality.  Construction is taking much longer as well.

[JoeStockIQ]

$4.50 copper @ 100M solves that issue for the most part. Has inflation hit well drillers? Other than higher energy, shouldn't get too out of hand. Using a $2.35 US All In cost at Gibraltar and $4.35 copper is going to generate roughly $200M, give or take. Heck, lop of another 10% and call it $180M. Say Capex rises to $260-$270M. They'll be fine. 

[JCSunsfan]

You really need to consider a CAPEX in the range of $350 million. I think they can still get it built, but it will take more financing. 

[JoeStockIQ]

Going from $230M to $350M would obviously indicate a whopping 50%+ inflationary impact. That's going way overboard JC, don't you think? They already purchased the necessary modules for the processing plant, have already spent significant funds on engineering and have all the needed blueprints from the test facility to have a sufficient model of what to expect moving forward. Major costs

[JCSunsfan]

Man.  I live here.  I am trying to build right now.  I would be thrilled if the bids were coming in at just 50% over two years ago.  I don't know where you live but this is reality.  

[nofluff]

A few points to consider jc. 1.As mentioned before. Expensive components, already purchased. 2. Land is usually a monster % of construction cost. 3. Flor land bought and paid for long ago. 4. There was a 20% contingency in last numbers. 5. Because of sweep efficiencies, wellfield size, could be downsized for initial ramp. 6. I have built a lot of homes and commercial buildings. 7. Custom homes

[JCSunsfan]

That timeline is depressing.  The longer you wait the higher prices will be.  Well we now know how all the stimmies will get paid.  Inflation.  Since almost all tax revenue is a percentage.  My property taxes have gone up 30% this year.  Just got the notification.

[slewfoot2]

I hear ya JC, ole slew was going to start on my custom build before marls kicked me out. But going ahead with the huge expansion on the Manufacturing enterprise. Costs have increased 150% for me. So consider yourselve lucky your cost only up 75%. Ole slew says gotta spend my money on sumthing so into the putatas it goes. Ole slew hoping for a double on ame due to news then maybe i can get marls

[metalhead666]

I heard that Marls took off with a biker and is living in a motel in Key West now.

[nofluff]

Excellant point jc. I have been saying the same thing up here. Energy costs for me r up an average of 75%. Animal feed is up 150%. Groceries r up 50% and climbing every day. We r told inflation is at 6%. Ncu ph is so fortunate that they got the ug mine built on 2020 prices. Flor may have been smart to have ordered key, expensive components months ago.  There will b guessing!!! nf

[JCSunsfan]

I am certainly hoping that those items pre-ordered were a big part of the CAPEX and they got them in early.  I am really frustrated with the EPA for dragging this thing out. 

[nofluff]

Everything is behind jc. My 3 colts r way behind as well. Kitchen is getting hot.  nf