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Message: azc...so...should we look more into this

Hudbat buys in at 2.75 with warrants at 3.90....the stock trades at 2.45....a good discount.....this am one of the banks issues a spec buy with a target of 4.50..........and then I came accross this


Dear subscriber,
Last week Taseko Mines (AMEX:TGB; TSX:TKO) announced they received a negative review from the Canadian Environmental Assessment Panel, stating the proposed Prosperity-mine could be harmful for the fishing activities and the land use by Indian groups.
However, the company pointed out that the review was positive on all 22 other points. And as it is the federal cabinet who has to give the final approval, the Prosperity-project is still not out of business, as the cabinet may judge the economic advantages are far more important than the potential environmental damages. With a gold price of US$1000 per ounce, the Prosperity project is expected to generate annual net revenues of over 350M USD over a 33 year minelife.
But we think Taseko Mines has a plan B on the drawing table. If Prosperity doesn’t get the green light, Taseko will look for acquisitions to maintain their growth strategy. We wouldn’t be too surprised to see them making a move to buy Copper Mountain Mining(CUM.TO) again, as they tried last year. Copper Mountain Mining is expected to start production somewhere around half 2011, to produce 75M lbs of copper at a cashcost of +- 1.20/lbs.
Another candidate might be Augusta Resources (AZC.TO), whose Rosemont copperproject looks similar to Taseko’s Prosperity project; Augusta is expected to produce 200M lbs of copper annually, at a cash cost of 0.95/ lbs. More important, Augusta Resources already has secured a silverstream deal with Silver Wheaton, and has almost secured its equity part of the 900M capex requirement.
Let’s not forget Taseko currently holds 200M C$ in cash, and expects another 100M in cashflow from their already producing Gibraltar-project. Without Prosperity, we think Taseko Mines is currently on a fair market value, but as we said, Prosperity is still on the table! It might be a good idea to write some puts on the stock.
Kindly yours,

Kinda makes you wonder if this needs more attention...no?

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