Some good thoughts on this purchase on SH forum for Teck...
I agree, the San Nicolas deposit does not necessarily fit Tecks criteria for their stated objective of a Large project capable of riding the waves of copper cycles. This deposit is only 12 yrs. It has good grades, but again, Teck is more concerned with size.
Unless there is strong potential for this further development of this project that allows for a long mine life, this isnt what Teck ideally wants. Perhaps instead, they pay the 50 Mil to now own the entire project and have plans to liquidate the whole project (much clearner and easier as a 100% ownership sale)...all consistent with their stated goal for copper future options of "surfacing value in next 3-5 yrs"
Again, slide 20 on May 16 presentation
Situation: Strong base metal growth options largely invisible to the market
• Objective: To surface the value in 3-5 years
• Possible routes to value realization include:
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‒ Prudent funding to increase certainty of development
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‒ Work with development partner(s) to advance in a timely manner
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‒ IPO, sell down and/or divest at the appropriate time
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‒ Build as a Teck project
