Taseko Mines Limited Offers Attractive Risk/Reward

Shares of Taseko Mines Limited (TGB) plunged this week on news that the Canadian Federal Government in Ottawa has announced that it has decided not to approve the company's Prosperity mining project due to environmental concerns. This project had been previously approved by the Provincial Government of British Columbia.



The call options on TGB were also very active this week, suggesting that traders believe the sell-off was overdone. Around 16,745 calls were traded, which is more than 3X the average daily volume. Essentially, after the initial reaction to the Prosperity news, the trading activity in Taseko was bullish, and for good reason.



The Federal Government's decision is not the death knell for the Prosperity project. Ottawa said that, "the project could not be justified as it is currently proposed due to the significant environmental effects." The company will likely appeal this decision, and also will have the opportunity to make changes to their proposal.

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Taseko Mines Limited Offers Attractive Risk/Reward originally appeared on BloggingStocks on Fri, 05 Nov 2010 17:10:00 EST. Please see our terms for use of feeds.

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