Q: As I read their press releases TKO has a new mine which should be producing copper towards the end of this year and the CEO has noted that the new mine will increase production and cash flow etc - although the extent of the increase is not defined. Could you please provide some guidance on the extent this new mine will have on the profitability of this company. Thank you.
5i Research Answer:
TKO is expected to see a rise in copper production and profitability driven by the development of the connector pit at its Gibraltar mine in BC. Copper production could rise 20% to 30% or more, and it is expecting this increase to be seen in the second half of 2025. Copper prices are rising and momentum is strong, and TKO has been consolidating for almost a year, but its share price looks attractive at these levels. Cash flows have been rising and it trades at 14X forward earnings.