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July 15, 2008 Dear Friend, Enclosed are five reports. We upgraded our rating on Thompson Creek Metals to Overweight and raising our 2008 earnings estimate to $2.27 from $2.17. Sean Heberling, CFA attended the July 9-10 TD Newcrest Calgary Oil Sands Conference, and visited the Shell Oil 60%-owned "Muskeg" open pit mine intertwined with the Teck Cominco/UTS Energy assets that we consider the logical buyer of the Teck Cominco/UTS Energy ventures. Third, Joe Reagor reviewed our Domtar model for 7% market decay and rising caustic, energy and other costs to cut our price target to $7 from $8, and cut earnings estimates. Fourth, we reviewed Barrick Gold's oil and gas acquisition as a "template" for 1970s and 1980s common practices in which manufacturer or mining firms owned oil and gas assets. Fifth, we estimated Central Chilean electricity rates fell up to 25% in second-quarter due to higher rainfall and hydro supplies based on two July 15th press releases of Amerigo Resources that operates a 150,000 metric tonne per day mill reprocessing Codelco's El Teniente copper mine tailings. Such power rates and insights into Codelco output trends are important "tidbits" into global copper supplies. We look forward to your feedback. Faithfully yours, John C. Tumazos |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
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