Timing is just about everything when the overall marketplace is a bit uncertain. What is not uncertain is a company that has solid cash flow, solid product sales and new projects on the horizon that are bought and paid for even before they begin. Finding a company such as this, and at a reasonable price, is the fairly safe way to profit when nobody is quite sure which way the market will turn.
Taseko Mines Ltd., a minerals exploration, development and extraction company, works to find and exploit mineral deposits primarily in British Columbia, Canada. The company currently operates several mining properties in and around the Williams Lake mining region where gold, molybdenum and copper represent the bulk of metals extracted.
The company has been in operation since 1966 and has a solid reputation in the strict Canadian mining sector. A solid flow of ore is being produced from its Gibraltar copper-molybdenum facility, to the point where it can help support future projects. In this respect, the company has announced a deal involving the Franco-Nevada gold company, where 22% of gold produced from Taseko’s proposed Prosperity mine will be purchased by Franco-Nevada. Combined with warrant sales involved in the deal, and other sale aspects, the company anticipates that the Prosperity project will be 80% financed even before construction has begun (and without accruing any debt). Overall, the Prosperity project is estimated to have a 33 year life expectancy, produce 7.7 million ounces of gold and 3.6 billion pounds of copper. Estimated commissioning is 2013. Additionally, the all important environmental assessment certificate has been issued by the provincial authorities.
Taseko Mines is finding profit at each of its open pit properties and expects the same going forward. At the end of 2009, the company reported a yearly operating profit of over $43 million compared to $28 million in 2008. Unfortunately, there were some minor non-cash losses due to derivatives issues but not to a point where overall security was affected. Given current stock price and in other aspects of the mining marketplace, Taseko Mines may be an option for those interested in getting into the metals sector.