Taseko Mines Share Discussion Threads

[qs99] 25/3/2024 13:17

Thanks Rimau1 and good afternoon.

Thanks also someuwin for posting update

$3.50 stress test is interesting, not sure we will be seeing those prices again for a while IMO! DYOR

[baddeal] 25/3/2024 12:20

This feels,like a really good deal especially in terms of cashflow and capping upside. Another step forwards. Once flo is running this company will be a cash cow

[someuwin] 25/3/2024 11:35

Rating BUY Price Target 235p ↑ from 220p

Cariboo-ya!

Canaccord Genuity view

Acquisition of additional 12.5% Gibraltar interest is accretive

Taseko has announced that it has acquired the remaining 12.5% of Gibraltar (held in Cariboo Copper Corp) that it does not already own, for mostly deferred variable payments of C$117-142m. Cariboo's current holders, Dowa Metals and Furukawa, recently sold a Japanese smelting asset to Mitsubishi, and Taseko notes that they are exiting their copper mining businesses. The deal is structured as follows:

•Initial C$5m payment (upon closing). •Remaining cash consideration repayable in annual instalments, commencing March 2026.

•Each instalment has a floor of C$5m when the prior year's average copper price is at US$4/lb or below, and pro-rated up to a ceiling of C$15.25m which corresponds to US $5/lb copper.

•The annual payments cannot exceed 6.25% of Gibraltar's annual cash flow for 2025-28, and 10% for 2029-33.

•Total consideration is capped at C$142m.

•Any outstanding balance on the minimum C$117m to be paid in a final balloon payment in March 2034.

We calculate the NPV10 of the additional 12.5% of Gibraltar as ~C$144m, while the NPV10 of the deferred consideration is ~C$60m (primarily due to the back-ended nature of the balloon payment), making this transaction highly accretive. Further, we estimate that the additional cash flow from the increased interest outstrips the deferred payments by an average of C$10m p.a. from 2024-30. This relationship also holds at US$3.50/lb copper, and is even more accretive at US$5/lb copper.
Finally, we note that the first variable payment kicks in after construction of Florence is complete, which should avoid additional balance sheet stress.

[rimau1] 25/3/2024 11:06

Nicely paraphrased QS!

[qs99] 25/3/2024 11:05

Really like the structure of the transaction, well done the board. Capped upside, minimum payment known for market, long-term payment schedule etc etc....DYOR...

[rimau1] 25/3/2024 10:33

Very smartly structured transaction, effectively a cashflow accretive loan hedged on copper prices. Need to sharpen my pencil and model TKO properly.

[tightfist] 25/3/2024 07:33

Interesting deal announced this morning; presumably it makes good sense if you are on board with the future dynamics of Copper..... which I do! (ATYM also gaining traction too)

[qs99] 21/3/2024 08:50

Mine as well, thought Flo would get permissioned earlier, but hey ho, TKO is moving in right direction as is copper price IMO...DYOR

[pughman] 20/3/2024 18:48

My investment here has just past the 3 year mark. I sold some BP at £2.90 to buy Taseko, yet today I can see a light at the end of that long dark tunnel. Yes, my timing was lousy, all part of my investment education I guess.

[qs99] 17/3/2024 13:16

THanks Rob, so nearer a £4 to £5 range? Provides a nice upside to current c.£1.30!!

Am suitably invested here to ride that "bagging"!

DYOR

[robmcelf2] 17/3/2024 12:02

Smith weekly research published this interview with Taseko CEO Stuart McDonald a couple of days ago which I found interesting. Stuart noted he felt the share price should be 5-6 dollars (I think that was US) https://m.youtube.com/watch?v=Sht_jVcYwXU

[qs99] 15/3/2024 14:19

Pushing on nicely again...DYOR

Copper looking v. strong...lovely job

[qs99] 14/3/2024 07:18

Copper holding nicely above $4....if it can maintain and increase from here, FLO economics should be very tasty. DYOR

[qs99] 13/3/2024 20:16

haha, indeed! Have a v. decent stake here and looking to get some material capital and income (eventually) gains over next few years....DYOR

[baddeal] 13/3/2024 19:00

Long way to run on this imo. Once flo starts the cash will flow faster than the copper :)

[qs99] 13/3/2024 16:32

Indeed....need it to be above £2 to make up for that opportunity cost!

[rimau1] 13/3/2024 15:27

2 years of pain and we finally break-out!

[qs99] 13/3/2024 14:17

Looks like a few liked what they heard! DYOR

[qs99] 13/3/2024 14:03

Thanks TF if you could that would be great, or a summary please?

Copper motoring through $4 will help as well!

DYOR

Cheers
QS99

[rimau1] 12/3/2024 07:55

If you have a spare minute appreciate any key takeaways tightfist?

[tightfist] 12/3/2024 07:33

I found last night's Mello presentation (webcast by Stuart McDonald) was pretty informative - post a link if I find one - or the Co website?

[rimau1] 11/3/2024 10:59

Zero value in the marketcap for Flo, still....

[qs99] 11/3/2024 10:37

Really doesn't take much volume to get his one moving, all to play for given upcoming Flo production and $ weakness IMO helping copper price. DYOR

[tightfist] 11/3/2024 07:51

A free Mello ticket offer for this evening's investor session, Code SHR100. I have already paid for mine......? Hopefully this event marks a reawaking of London promotion