Shows the opinion of Teck and what they see in Schaft Creek. If it was so bad, why spend even the $20 million for the JV, then $3 million for for year study and then another $5 million this year.
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I agree with you, Teck definately wants it and wants to sort everything out so they have a clear view of what the asset has to offer them.
I would suggest that the biggest stumbling block for us right now is the CAPEX costs. I'm sure SC will be one of their richest and lowest cost/lb properties. But its a BIG spend to get it operational and won't start paying back for several years.
I believe that is the reason they want to buy a distressed copper producer - lower spend and production can pay back as soon as metal prices move. I think with market conditions (both market and metals) they are focusing on the near term, at least that what it looks like to me.
I think after their bottom line strengthens - they will be ready to move quickly on us and they will know all they need to know about SC.
I don't discount that this could happen much sooner and they could move on us later this year. There are good arguments for that scenario too, but for me personally I think their next copper move will be a producer as per thier public statements, IMHO.
Still no office response re: VD and water rights at this point.
