Taseko Mines Ltd. (TGB) Extends Capacity and Life of its Primary Gold Opportunity
Source: http://Blog.QualityStocks.net/?p=19219Posted on Wednesday, November 11th, 2009 | In Investing Lessons, Small & Micro Cap
Paying attention to gold mining in recent quarters has become a requirement as investors look at the price of the dollar and swings in price of several differing factors. In any sense, a position in a stable commodity is needed to balance a portfolio, but to what extent? This is an individual assessment but one that should be of concern for any investor. Picking the correct opportunity to fill this need is the question. The correct choice is one that will help balance the portfolio but also stave off the possibility of a commodities crash.
Taseko Mines Ltd., a mining and exploration company, works to explore for and exploit mineral deposits in Canada. Although the company focuses primarily on gold deposits, it also capitalizes on other associated metals such as molybdenum (a steel production additive) and copper. The company has recently announced a solid opportunity and expansion that will extend the working life of a major gold producing mine to over 30 years.
An investor should understand that this particular opportunity is a working one. It lives and dies as a working entity and is exposed to the flows of capital as far as commodity pricing is concerned. It is, however, positioned to take advantage in several differing ways. It has exposure to gold and other base metals but is also working with allied base materials that make other products possible. This may be a difficult item to indicate, but the company appears to be well diversified, or as much as a mining company can be. Feast or famine may be a part of the company’s structure but production and material prices are moving up.
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