Taseko Mines (Amex:TGB) was dealt a devastating blow no matter how it is spun, as the Office of the Minister of the Environment rejected the Prosperity Copper and Gold Mine, leaving Taseko and its shareholders with nothing for the effort.
Cannacord Genuity and TD Newcrest didn't take long to downgrade the mining company. Cannacord downgraded them from "Buy" to "Hold," while TD Newcrest lowered their rating from "Hold" to "Reduce."
"Yesterday (Tuesday), after the market close, the Office of the Minister of the Environment reported that the Federal Cabinet rejected Taseko Mines’ Prosperity copper-gold project, as proposed. According to a statement made by the Environment Minister Jim Prentice, the project was rejected due to the adverse effects it would have on the environment...We have removed the Prosperity project from our valuation estimates. As a result our 10%NAVPS estimates dropped $3.38/share to $4.25 from $7.63 previously, and our target price has been lowered to C$5.00 from $6.75."
Taseko closed Tuesday at $4.91, dropping $1.57, or 24.23 percent.
aarrgghhh!
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