Taseko Mines Limited (TGB): Buy This DIP
Saturday, August 12, 2006 at 12:15PM
Gold Prices in Gold Mining Companies
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Taseko Mines Limited (TGB) 3rd-quarter earnings fall, the faint hearted sell, presenting us with a great buying opportunity.


Vancouver based mining company Taseko Mines Limited (part of the Hunter Dickinson family) reported earnings of C$4.1 million or 3 Canadian cents a share for the 3rd quarter, down from C$11.6 million for the same period a year earlier.
However, operating profits were up to C$18.3 million from C$12.2 million. Revenue was up to C$59.9 million almost double the pervious figures.

We can understand investors sitting on large profits pulling the pin as these figures are not as good as some of the numbers that we have reported for other companies on this website. However, this does appear to us to be really overdone. Did they all miss the fact that the Gibraltar mine will increase annual production capacity to 100 million pounds of copper by 2008, an increase of almost 50%!

Lets take a look at the chart; we can see the sell off and also the beginnings of a bounce the very next day. Are the same people who sold buying back in or is it the cute investor who has patiently waited for this chance to get into this mining stock at a very reasonable entry price. We don’t know, neither do we care, but for us it is a wonderful opportunity to invest our hard earned cash into this stock.
We had previously recommended Taseko at $2.78 and on Friday it closed at $2.26.

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Our course of action will be to buy again on Monday.

For the purposes of our progress report we will use the original purchase price, as we believe it is only fair to do so.

This next purchase will be regarded as a nice bonus.

(TSX: TKO, AMEX: TGB)

12 August 2006
Article originally appeared on Gold Prices (http://www.gold-prices.biz/).
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