Seeking Alpha: Taseko Hoping To Offer Its Own Copper Growth Story

One of the reasons I like First Quantum (OTCPK:FQVLF) is that I believe that company is poised to deliver excellent low-cost/high-value growth from its copper mines both already operating and on the drawing board. The same could apply to Taseko (TGB), as this BC-based Canadian miner has an existing mine with expansion capacity and a potential new mining project that could offer excellent cash costs.

Of course there is a "but", and with Taseko it's a triple-but. The first "but" is that a lot of copper mining projects are on the books now and it is going to take a real recovery in global demand to maintain prices in the face of that supply. The second "but" is that the company's current copper mine is on the high end of cash costs. The final "but" is that the company's biggest near-term expansion possibility may be derailed by wrangling over environmental and cultural issues.

Even though Taseko is in solid financial shape, the stock has gotten pummeled like most other mining companies. With that, I see significant potential opportunity here. I believe Taseko could rise 30% just on the basis of its existing mine if copper prices stay at $3/lb, and the upside could be into the $4 range (100%-plus potential) if the expansion, cost, and pricing scenarios all work out.

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Taseko Hoping To Offer Its Own Copper Growth Story