Taseko, TKO.to/TGB C$.77
Posted: Wednesday Feb 20 11:22:01PM 2019
Bought a position in Taseko. Copper inventories in London are at 5 year lows. Last time they were this low, the price shot up. China worries have caused copper prices to sag but the fundamentals are very positive for copper prices. In addition, the bear market in mining stocks has slowed exploration and worldwide copper production is not growing enough to match global growth in demand. I looked at several junior producers. Taseko has a proven property that is producing 130million pounds/year. Taseko owns 75% of their main mine so they end up with about 100million pounds/yr. they have an in situ copper mine in Arizona under construction. Production should start in 2020. With rising copper prices, Taseko should move into profitability and have the cashflow to reduce their debt. They do have 300 million in debt that probably contributes to the low share price.