Why Taseko Shares Got TKO’d

Is this meaningful? Or just another movement?

| More on:
The Motley Fool

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of Taseko Mines (TSX: TKO) plunged 11% today after the Canadian Environmental Assessment Agency federal Review Panel said that its New Prosperity copper-gold project in British Columbia still poses a threat to the environment and nearby communities.

So what: While the Canadian government will ultimately decide on whether the project will go ahead, the panel’s opinion plays a key a role in weighing the costs and benefits to the community. Taseko naturally disagrees with the report and believes that New Prosperity’s risks are modest with huge social and economic upside, but if Bay Street’s interpretation is correct, the odds are now stacked heavily against approval.

Now what: The Canadian government is expected to make its decision on New Prosperity by February. “With any major project there will be different views and some trade-offs, but we are confident the federal government can and will approve this project,” Taseko CEO Russell Hallbauer said in a statement. “Taseko has also made significant commitments during the environmental assessment and is committed to further addressing any outstanding issues during permitting.” So while Taseko is certainly too speculative for average investors, New Harmony’s production upside if approved, coupled with stock’s still-depressed price, should give resource-savvy contrarians something to consider.

Buy These 5 Companies Instead of Following a Flawed Piece of Advice

Many Americans have turned to “indexing” when managing their portfolios. But even though it works for our neighbors to the south, Canadians may walk into a trap by relying on indexes. You see, unlike the TSX, American indexes are effectively diversified … making them safer bets.

So what does this mean for savvy Canadian investors? The Motley Fool has prepared a Special FREE Report that can help you work around the pressure to invest in indexes. It’s called “5 Companies That Will Help With a Flawed Piece of Advice,” and you can receive a copy at no charge by simply clicking here now!

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Brian Pacampara does not own shares of any companies mentioned.  The Motley Fool has no positions in the stocks mentioned above at this time.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Arrowings ascending on a chalkboard
Investing

I Think They Can: 3 Stocks That Can Keep Chugging Higher

CN Rail (TSX:CNR) and other transport plays have what it takes to chug even higher from here!

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Better Buy: Dollarama Stock or Alimentation Couche-Tard?

Take a closer look at these two defensive retail stocks to determine which might be a better holding to protect…

Read more »

Growing plant shoots on coins
Dividend Stocks

TFSA Dividend Stocks: How You Can Earn $400 Per Month of Growing Passive Income

Here's how you can buy top Canadian dividend stocks in your TFSA to build a rapidly and consistently growing passive-income…

Read more »

top TSX stocks to buy
Dividend Stocks

GICs vs. Dividend Stocks: Where to Invest for Passive Income in 2024?

Income-seeking investors can consider holding instruments such as GICs and dividend stocks to create a recurring revenue stream.

Read more »

Dollar symbol and Canadian flag on keyboard
Investing

If You Don’t Own This Canadian Stalwart Stock, You’re Missing Some Serious Stability

Here's why Royal Bank of Canada (TSX:RY) remains a stalwart long-term investors have done well to make a core holding.

Read more »

Payday ringed on a calendar
Dividend Stocks

Got $10,000 to Invest? How to Turn it Into Monthly Income

Canadians can produce recurring monthly income streams from a $10,000 investment in two high-yield real estate stocks.

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

How to Build a Bulletproof Dividend Portfolio Starting With Just $10,000

Want to earn a growing stream of dividend income? Here's how to invest $10,000 for a great combination of income…

Read more »

Wireless technology
Tech Stocks

Got $5,000? 2 Tech Stocks to Buy and Hold for the Long Term

Here are the best tech stocks to buy, with one offering long-term growth and the other offering strong business as…

Read more »