$TGB : Florence Copper Project Low Level Analysis

Long-Term Price Case$3/lb. Cu
ProjectFlorence Copper Project
Estimated Indicated Resources2.8B lbs.
Average Annual Production96.8M lbs.
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)
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.

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