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June 9, 2008 Dear Friend, Attached are reports on Teck Cominco, Duluth Metals, Plum Creek, a copper industry note after visiting Taseko Mines' Gibraltar mine expansion and an AbitibiBowater note. We raised our price target for Teck Cominco owing to the massive infill drilling opportunity of existing holes spaced at 500 meters in the "Frontier" northern leases for which UTS Energy estimates the resources at 279 mm barrels at 100 meter spacing, 1,050 mm barrels at 200 meter spacing and 2,800 mm barrels at 500 meter spacing. Further, our estimate that each of Teck Cominco and UTS Energy have 3 billion barrels apiece excludes in situ opportunities to the west where the depth of the strata plunges. However, other companies are pioneering in situ steam injection recovery techniques that appear SUPERIOR as the steam heat may cause light crude rather than bitumen to flow in some cases. We raised our price target for Duluth Metals to $15 from $10 because of higher precious metals and copper prices than expected, higher planned tonnage throughputs and better grades that we estimate will repay $1.4 billion in capital at 10% interest by 2019. We cut our Overweight-rated Plum Creek target to $70 from $80 because the sales of 0.3 mm Montana acres at $1,667 per acre was less than our estimate though above consensus values. We also enclosed reports on Taseko Mines and AbitibiBowater. Cheers John C. Tumazos |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
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