$TGB : Taseko Mines — New Prosperity… What if?

Long-Term Price Cases$3/lb. Cu, $1,700/oz. Au, $24/oz. Ag
ProjectNew Prosperity
Ownership100%
M&I Resources12,836,666,667 CuEq lbs.
Average Annual Production247,911,111 lbs. CuEq
CuEq Recovery64%
Payable Copper3,648,000,000 lbs.
Payable Gold7,720,000 ozs.
Payable Silver19,800,000 ozs.
LoM33 Years
True All-in Costs (TAIC)$1.55/lb. CuEq
Gross Revenue$24,543,200,001
Total Operating Costs ($6,664,337,195)
Operating Profit (EBITDA)$17,878,862,806
Income Taxes($4,827,292,957)
Total Capital Costs($1,149,157,800)
Net Income$11,902,412,049
Net Profit Margin48%
Absolute Cost Structure (ACS)52%
MTQ Score (Higher is Better)0.9
Estimated Average Net Annual Cash Flow Contribution at the Long-term Price Cases$359,471,111

Notes: All Values in U.S. Dollars

An encouraging development at Taseko this week:

The Tŝilhqot’in Nation and Taseko have agreed to an outstanding litigation freeze, while the parties engage in what we hope proves a fruitful dialog aimed at the resolution of a decade-long conflict.

Were a resolution to be reached and development of the New Prosperity Project green-lighted, Taseko would be catapulted into the top ranks of North American mid-tiers.

New Prosperity is one of our favorite development-stage Projects and our economic analysis demonstrates why.

It’s time to pray!

$TGB : Florence Copper Project Low Level Analysis

Long-Term Price Case$3/lb. Cu
ProjectFlorence Copper Project
Ownership100%
Estimated Indicated Resources2.8B lbs.
Average Annual Production96.8M lbs.
Recovery99.9%
Payable Product2,517,480,000 lbs.
LoM26 Years
True All-in Costs (TAIC)$1.98/lb.
Gross Revenue$7,552,440,000
State Royalty (~5%)($377,622,000)
Net Revenue$7,174,818,000
Total Operating Costs ($2,265,732,000)
EBITDA$4,909,086,000
Income Taxes (Effective Rate 24%)($1,178,180,640)
Conoco Inc. Net Returns Royalty (~3%)($147,272,580)
BHP Copper Inc. Royalty (2.5%)($93,272,634)
Total Capital Costs($917,000,000)
Net Income$2,573,360,144
Net Profit Margin34%
Absolute Cost Structure (ACS)66%
MTQ Score (Higher is Better)0.5
Estimated Average Net Annual Cash Flow Contribution at the Long-term Price Case$98,736,000

The Florence Copper Project will be profitable at today’s Cu price and will prove a veritable cash cow at the long-term price case and above.

Our estimated Total All-in Costs (TAIC) of $1.98/lb. is stellar and will result in a healthy Net Profit Margin of 34%.

Florence is a well-timed Project with a bright future that will generate the cash required to self-fund the advancement of Yellowhead, Aley and Harmony.

Fahy Capital Management initiated a stake in Taseko Mines on 12 November 2019.