|Long-Term Price Cases||$3/lb. Cu, $1,700/oz. Au, $24/oz. Ag|
|M&I Resources||12,836,666,667 CuEq lbs.|
|Average Annual Production||247,911,111 lbs. CuEq|
|Payable Copper||3,648,000,000 lbs.|
|Payable Gold||7,720,000 ozs.|
|Payable Silver||19,800,000 ozs.|
|True All-in Costs (TAIC)||$1.55/lb. CuEq|
|Total Operating Costs ||($6,664,337,195)|
|Operating Profit (EBITDA)||$17,878,862,806|
|Total Capital Costs||($1,149,157,800)|
|Net Profit Margin||48%|
|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!
|Long-Term Price Case||$3/lb. Cu|
|Project||Florence Copper Project|
|Estimated Indicated Resources||2.8B lbs. |
|Average Annual Production||96.8M lbs.|
|Payable Product||2,517,480,000 lbs.|
|True All-in Costs (TAIC)||$1.98/lb.|
|State Royalty (~5%)||($377,622,000)|
|Total Operating Costs ||($2,265,732,000)|
|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 Profit Margin||34%|
|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.