As for Teck shelving us. What difference does it make if we CUU owned 100% of SC? If Teck doesn't see SC is worth developing, then who will if we owned 100%? If Teck doesn't think a project in their own backyard in BC isn't worth it, do you think CUU is able to build a $3.2 billion mine?
The JV shows that CUU is confident in the economics of SC. They are willing to give Teck the 75% and let them be the operator and find out exactly how much value is in the ground when they do their work.
Bingo!
Copper Fox didn't need to keep a gun to Teck's head (forced 4X spending on exploration) in order to make Schaft Creek attractive enough to go mining. Dilution-avoiding cash payments made more economic sense for us. If Teck can't make a go of this project (being lower-grade mining masters operating in their own safe backyard) then pretty much no one else could/would.
I believe and trust in the irrisistable attractiveness of the "true" economics of SC and I trust Teck's greed to not delay a production decision much further. Schaft Creek's large production profile fits their stated growth goals and Schaft Creek meets and exceeds ALL of their ideal mine criteria, not to mention it's near-perfect production timing for the upcoming annual copper supply deficits they harp on Teck's statements, not mine.
Teck has a fiduciary duty to its shareholders to persue safe growth opportunities. With the extensive optimization numbers coming into focus Teck can't possibly be staring at a true IRR probably north of 20% and a near billion dollar projected annual cashflow from their 75% portion and decide to put it off in hopes that a patient and savvy billionaire accountant capitulates. The opportunity costs of deferring such profits are too high to Teck to endure or explain to their shareholders, imo.
If I am completely wrong about the economics and overall attractiveness of Schaft Creek and Teck shelves it, then it really doesn't matter "what happened" to the Salazar agreement as we would be 100% owners of prime moose pasture, would be cash starved, and would subsequently be diluted into oblivion.
If you do believe in the true economics of Schaft Creek then you need only trust capitalism in general, and/or trust Teck's greed and fiduciary duty to do what is right for their bottom line.
JMHO
