- Taseko Mines Limited (TKO) announced today they have acquired copper put options
- The put options will protect the company against the price of copper dropping further
- In the last 2 weeks the price of copper has fallen almost 12 per cent
- The company operates the Gibraltar Copper Mine in British Columbia, the largest open pit copper mine in Canada
- The president of Taseko Mines Limited has said he is still “bullish” about copper’s future but sees the need to “protect our cash flow against short-term copper price volatility”
- Taseko Mines Limited (TKO) remained steady today, with shares currently trading at C$0.61
Taseko Mines Limited (TSX: TKO) has secured copper put options after two weeks of volatility in the copper market.
The company acquired the option to protects its three-quarters share in the Gibraltar Copper Mine located in southern British Columbia. It is currently the largest open pit copper mine in Canada.
A put option is an agreement to fix the price of a commodity for sale for a given period of time. Specifically, these coppers put options are to protect against the price of copper falling further than it already has.
Taseko Mines Ltd.’s copper put options fixes the price of copper at C$3.46 per pound. The agreement covers 22.5 million pounds of copper over February, March and April.
Stuart McDonald, President of Taseko, commented, “This strategy has served us well in the past and protects our cash flow against short-term copper price volatility like we’ve seen over the last two weeks.”
Mr McDonald went on to say that he’s still bullish about copper’s future overall.
The price of copper has taken a steep plunge in the last two weeks. Since January 16th the price of copper has fallen by almost 12%.
Over the last year Taseko Mines Limited stock has fallen by almost 20%.
Taseko Mines Limited (TKO) remained steady today, with shares currently trading at C$0.61