Taseko's Prosperity Project, Future of Mining in British Columbia in Jeopardy

By: Jeb Handwerger | Mon, Jul 5, 2010
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Late Friday the Federal Review Panel came out with a report assessing the environmental impact of the mine. The Federal Review Panel did not weigh in the economic affects of this project. They made environmental recommendations for Taseko to take if the mine is approved.

I believe the Prime Minister along with the Cabinet will support the British Columbia Provincial Approval based that the economic benefits far outweigh the environmental impact.

The mining industry is crucial to the Provinces Gross Domestic Product and brings in over 8 billion dollars to British Columbia a year. A major concern is that the construction of new mines has been declining. Many mines are closing and there has been a rapid decline of economic reserves.

Prosperity is British Columbia's flagship project that will bring in 400 million dollars of revenue a year. Now the cabinet has recommendations from the panel on what Taseko should improve if the project is approved. The project is very popular in British Columbia and I do not believe that the Prime Minister and Cabinet go against British Columbia's approval. Their approval was based on the belief that the massive economic benefits would far outweigh the environmental loss to the local community. If the Prime Minister rules against the Province it will have devastating effects not only to British Columbia, but to Canada and its status as a friendly mining jurisdiction. This status brings in huge amounts of investment capital which is crucial for economic development.

The news related sell off creates another opportunity for investors to buy Taseko at bargain prices. In January I recommended readers to take profit as it was time to sell on good news and when readers were up 250%. Now is the opposite time. I believe this is the time to buy when everyone else is fearful especially if you are still holding shares. Now is definitely not the time to sell into a panic. Prosperity is far from over.

Taseko Mines

The news related break of the moving averages might appear negative but this decline has not shown to be high volume correction. I expect there to be a move higher as many sold off with the news coming off the wire and do not understand the macroeconomic effects of this project. Subscribers are still up over 100% even though many should have taken profits when I recommended and kept the 15% trailing stop loss which I also made sure for subscribers to have. If you have not taken profits and are still holding. I would recommend waiting until September until the Cabinet and the Prime Minister make their decision which takes into consideration more variables than just the environment.

Disclosure: Currently do not own Taseko.



Jeb Handwerger

Author: Jeb Handwerger

Jeb Handwerger

Jeb Handwerger

I started reading charts at eleven years old. One day my father, a market trader and technician found his library of books on technical analysis mysteriously disappearing. He later found the textbooks under my bed. For many years day and night I studied technical analysis and charting, working and learning from my father who has over 50 years of trading experience. Technical analysis is my passion and love.

In 2001, I started noticing the junior mining stocks and gold as having a tremendous upside. For the past 9 years I have researched many juniors and have identified the major winners using technical analysis and finding top management.

I earned a Bachelors Degree in Mathematics and a Masters Degree. I learned most of my technical analysis from the school of hard knocks, managing real money for myself and for my family.

Constantly perfecting my craft, I have traded for two decades of success in many different markets. I have been asked to post ideas to some of my students who have taken my course in charting and technical analysis. I have made an excellent living trading stocks for myself.

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