MTomasic
05-11-2007, 07:30 PM
Hi, I'm new to the website. I am a semi-retired attorney and I tend to overkill some of the financial information, but I hope you will find it useful.
In about December 2005, I found Yamana Gold (AUY) selling for less than $5.00. It went to $9.00 or $10.00 very quickly, and I was hooked on setting aside some risk capital for inexpensive stocks. Since then, I have looked at some pharmaceuticals and other developing businesses, but nothing has appealed to me like the mining stocks.
I found Taseko (TGB) at $2.58 a few months ago, and it has moved to as high as $3.60, but has recently returned to $3.15. I think that as long as copper continues to hold above $2.50 (currently about $3.60), this company can do nothing but appreciate. Check out their website with the 2005 and 2006 financials together with the Dubai 2006 slide show.
On page 21 of the slide show presentation, combined mining operations project 175,000,000 pounds of copper production and 150,000 ounces of gold production in 2009, growing to 250,000,000 pounds of copper production and 300,000 ounces of gold production in 2010. At a $1.00 per pound profit ($2.25 per pound average price, $1.25 average cost per pound) for copper and $200 per ounce profit ($450 per ounce average price, $250 per ounce average cost) for gold (discount any other metal production like silver or molybdenum) and the profit potential is still $212,500,000 in 2009 and $307,500,000 in 2010. Assuming 200,000,000 outstanding shares, per share earnings could be $1.00 to $1.50 between 2009 and 2010.
The assumptions I used were very conservative considering the current prices for copper and gold.
Thomson lists a current P/E of 13. Thomson's current projected earnings must be $.23 (Price $3.00, P/E of 13). Seemingly, between now and the end of 2009, the earnings will increase a minimum of fourfold. Assuming a P/E ration of at least 10, the price of the stock should be near $10.00 a share. Of course, if the P/E remains in the 13 range and the earnings grow to $1.50, the potential in 2010 is for a per share price of $19.50.
Both Phelps Dodge (now Freeport MacMoran) and Souther Copper have more than doubled in the past two years with their sales to China in particular. Taseko happens to be on the Pacific side of Canada and will benefit as well.
Hope some of you will invitigate the stock and give me your comments. Thanks, Mick
In about December 2005, I found Yamana Gold (AUY) selling for less than $5.00. It went to $9.00 or $10.00 very quickly, and I was hooked on setting aside some risk capital for inexpensive stocks. Since then, I have looked at some pharmaceuticals and other developing businesses, but nothing has appealed to me like the mining stocks.
I found Taseko (TGB) at $2.58 a few months ago, and it has moved to as high as $3.60, but has recently returned to $3.15. I think that as long as copper continues to hold above $2.50 (currently about $3.60), this company can do nothing but appreciate. Check out their website with the 2005 and 2006 financials together with the Dubai 2006 slide show.
On page 21 of the slide show presentation, combined mining operations project 175,000,000 pounds of copper production and 150,000 ounces of gold production in 2009, growing to 250,000,000 pounds of copper production and 300,000 ounces of gold production in 2010. At a $1.00 per pound profit ($2.25 per pound average price, $1.25 average cost per pound) for copper and $200 per ounce profit ($450 per ounce average price, $250 per ounce average cost) for gold (discount any other metal production like silver or molybdenum) and the profit potential is still $212,500,000 in 2009 and $307,500,000 in 2010. Assuming 200,000,000 outstanding shares, per share earnings could be $1.00 to $1.50 between 2009 and 2010.
The assumptions I used were very conservative considering the current prices for copper and gold.
Thomson lists a current P/E of 13. Thomson's current projected earnings must be $.23 (Price $3.00, P/E of 13). Seemingly, between now and the end of 2009, the earnings will increase a minimum of fourfold. Assuming a P/E ration of at least 10, the price of the stock should be near $10.00 a share. Of course, if the P/E remains in the 13 range and the earnings grow to $1.50, the potential in 2010 is for a per share price of $19.50.
Both Phelps Dodge (now Freeport MacMoran) and Souther Copper have more than doubled in the past two years with their sales to China in particular. Taseko happens to be on the Pacific side of Canada and will benefit as well.
Hope some of you will invitigate the stock and give me your comments. Thanks, Mick