I kind of expected TGB (Taseko) to follow the same path as Eurozinc (EZM) todayâ€¦ and it did. TGB gapped down today just like EZM did yesterday which makes me think that I should add to my position in TGB as Eurozinc surged back very strong today.
Taseko mines reported lower than expected earnings, but its profits were based on Copper prices form the first quarter. These prices have reached nearly $4.00/lb, a significant gain since Q1.
To their credit, Taseko has shown conservative accounting and strong management. They are also 100% unhedged, meaning that the copper that they are selling now is selling at market prices. This will contribute to the lofty gain in revenues that I expect for Q2. That being said, I may add a small position tomorrow morning on the assumption that the share price will rally back to end the week.
The overall health of general markets is fairly concerning though. The Nasdaq has taken an absolute beating. This can be expected with new highs being found in many sectors such as oil and gold as well as the major indices. At some point something has to give. It will be interesting to see how investors finish the week.
The duplex furnaces were inspected this morning and everything turned out fine. They need a seriously cleaning to maintain their efficiency and contribute to their longevity, but there were no major problems visible.
I will be calling the owner tonight to close the deal.
The 12 unit apartment block will be viewed on May 20, 2006 as well as a Tri-plex that I have a line on in the same city. I am still working on finding another partner for the 12-Unit, should the deal be sound.