Like the butterflies that flutter through performers' guts before they go out on stage, one small-cap copper miner is brimming with anticipation for the performance of a lifetime.
The audience clamors from beyond a closed curtain, chanting: "We want Prosperity!" But Taseko Mines
Because of a steep surge in both production costs and total cash costs at Gibraltar, operating profit grew only 4.2% to CAD$17.4 million, despite the higher production volume and a 50% increase in realized copper prices. Production costs rose 71% to USD$1.64 per pound for the quarter.
The jump reflected an array of factors, including a higher stripping ratio (working through more waste rock to access ore), a stronger Canadian dollar, and rising fuel costs. As a reference point, larger miner Southern Copper
Thanks to some very attractive copper hedges that I reported to you earlier in the year, Taseko will remain comfortably profitable, even with this near-term surge in costs. Meanwhile, a broader perspective reveals that Taseko is placing the finishing touches upon some meaningful upgrades at Gibraltar. A new in-pit crusher and conveyor system, a new Bucyrus
Speaking of Prosperity -- the star of this show, leaving investors giddy with anticipation -- Taseko still expects that all-important mine permit to be approved in either September or October. The company has already awarded some preliminary contracts with the expectation of a positive finding. Prospective mine developers throughout the Canadian provinces -- from NovaGold Resources
Whatever the outcome, one thing is for sure: Taseko has never stood on a bigger world stage.
More than 1,680 Motley Fool CAPS members have lined up behind Taseko with high expectations for Prosperity. As a longtime shareholder, I stand right there with them. Join the free community today to share your views.