Taseko Mines takes a step towards approval for its Florence Copper Project
(Kitco News) - Taseko Mines Limited (TKO:LSE) have announced that the Arizona Department of Environmental Quality has granted its Florence Copper Project the Aquifer Protection Permit.
Russell Hallbauer, Chief Executive Officer and Director of Taseko, stated "This is a key milestone in the advancement of the Company's next operating asset. By issuing this permit, the ADEQ has endorsed the environmental integrity of our project and is confident that the commercial operation will meet all state environmental laws and regulations. The US Environmental Protection Agency ("EPA") continues to advance their permitting process and our expectation is that the Underground Injection Control Permit will be issued in early 2021. With construction anticipated to commence in 2021, the timing could not be better with copper being highlighted as the metal of the future as the world aggressively transitions to a green economy."
Stuart McDonald, President of Taseko, added, "When in production, Florence Copper will produce 85 million pounds of copper annually at US$1.13 per pound C1 cash costs over its 20-year mine life. Based on our latest Technical Report, and supported by nearly two years of successful operation of the test facility, the project has an after-tax NPV (8%) of US$680 million at a copper price of US$3.00 per pound. At today's copper price, the NPV rises dramatically to US$920 million, which is roughly three times our current market capitalization. We have de-risked the project significantly since its acquisition in 2014 and believe we are on the cusp of having one of the best low-cost, fully-permitted and financed copper projects in the world."
Below is the TSX listing for the share. The price has now broken out of the chart pattern and have now pushed to the upside. There could be a test of the highs on the chart of 1.76 if the bullishness continues. In an ideal world, the volume would be higher when the price pushes up compared to when it falls but this is still a good sign for the bulls.