Good thing TC sold half of the gold when prices were higher kept the copper which actually has utility in this world. TC isn't being valued as if it is going to produce any copper or gold. The market has given the stock no premium. Concerns of copper surplus and the fact that MM deposits are low grade ore have been shaking my confidence recently in my price stock expectations but the Bingham event is starting to build my confidence again. I think gold is going to continue to sell off because things in the US are getting better and the dollar is strengthening (rotation from gold to stocks). Copper with actual utility will hold more of its value than gold. Once TC starts producting copper and gold profitably and its price to book shifts to an FCX price to book, the stock will be at 12. However, I would be extremely happy if we hit 8 by the end of the year. The % completion updates aren't jiving with the timeline expectations so am concerned about the timing but not that completion will happen. Seems like recently they have only completed 1% per month and they have 17% to go.
May be a good time to accumulate a little more at a bargain price- eh Foggie?
"Kennecott is the second-largest copper producer in the United States, and Bingham Canyon, one of the world's largest open pits, produced 163,200 tonnes of copper last year, as well as 200,000 ounces of gold.
In a note to clients, BMO Capital Markets analyst Tony Robson said that on a provisional basis, he expects between 80,000 and 160,000 tonnes of copper could be lost this year, and production could be affected in 2014 and 2015 as well."