Teck's total cash cost is $1.62 per pound of Copper in Q1.
Other Copper Projects
At Relincho, work continues on optimization studies that are focused on capital and operating reductions and other value enhancing initiatives. Focused engineering studies also continue for our Galore Creek, Schaft Creek and Mesaba projects as we further explore ways to enhance the value of these projects. No significant field work is planned on these projects in 2014.
Markets
LME copper prices averaged US$3.19 per pound in the first quarter of 2014 compared with
US$3.60 per pound in the same period a year ago. Copper prices were stable during the first
quarter of 2014 before softening at the end of the quarter. LME, Comex & SHFE stocks were
down 30,300 tonnes in the first quarter. Consumption in China continues to show good growth based on investment plans by the State Grid. In Europe, consumption continues to show strong growth with metal premiums holding strong while in the U.S. consumption in the first quarter was soft as a result of the extreme winter. Mining companies have been giving lower production guidance for 2014 which is translating into a lower expected metal surplus.
It seems the optimization studies are well underway at Schaft Creek which is a positive. No delays is a good sign for this company. I hope to hear the results within the next 2 months at the latest. These studies should be made public once the results are known as these developments are very material to Copper Fox and its shareholders! It angers me when I read:
2) How long of a wait do you expect before Teck announces the findings of their optimization? (the results are expected relatively soon. Disclosure requirements may require that these observations cannot be released to the public. Best to wait and if possible the results would be made public)
Reading the above bolded statement puts knots in my stomach and if these results remain private then I am certain legal action can be taken by the investing shareholders of this company. The fact that we are hearing very material information may not be made public and known to shareholders is very concerning as the value added from those studies will dramatically change the way we look at the Schaft Creek mine in connection to value and economics. I believe these studies alone can greatly improve the overall perception of this project, but the company is telling investors that we may not see the results because Teck does not want to expose the truth of the mine? Teck is a very intelligent organization, so of course it is in their best interest to shield the reports as the value-add alone will greatly change the interpretation of the project from a value perspective. When Elmer says these studies may not be public is very troubling because the results are very material to CUU shareholders! The above statement does not seem like a CEO looking after the best interest of his shareholders and doing his fiduciary duty in my opinion. In the best interest of the shareholders these results must be made public. I am going to talk to my uncle who is a corporate lawyer for a major public company (10 billion market Cap.) and get some advice from him on this matter to see what he says. I am sure if the joint venture decides to sheild the results, legal action is a real option.
In another topic, Elmer states that the buyout price will be based off value of the project and comparable market transactions of large Copper projects. Here's a list of such transactions:
Las Bambas- $5.85 billion price
Cobre Panama- $5.1 billion price
Quellaveco- 18% interest for $890 million
There is hope here but for Schaft Creek to be valued FAIRLY let's start by releasing the 2014 results of those studies being conducted by Teck to determine a potential takeover price. This would be in the best interest of shareholders to know these reports. Elmer even told me once that Schaft Creek is worth more than the comparable projects! It is time to ante up or fold...
