$TGB, $NAK Break Out Off Earnings and a Letter to the EPA

Don’t ask me why I have 20% of my portfolio in $TGB, but I do. There’s something wrong with me and my penchant for taking outsized risk. Apparently, that risk will pay off in spades today after a huge earnings win was reported last night. TGB is a very overlooked and undervalued copper play.

Shares are jumping in the pre-market.

Reports Q4 (Dec) earnings of CC$0.07 per share, CC$0.07 better than the Capital IQ Consensus of (CC$0.00); revenues rose 54.1% year/year to CC$94.6 mln vs the CC$91.92 mln two analyst estimate.

Site operating cost per ton milled was $9.13, a fifth consecutive quarter below the $10 internal benchmark cost due to a continued focus on spending and operational efficiencies.
Copper production at Gibraltar was 40.7 million pounds (100% basis), an increase of 23% over the same period 2015. The Gibraltar molybdenum facility, which was restarted in September, produced 800 thousand pounds of molybdenum.

Total sales for the quarter were 40.4 million pounds of copper and 800,000 pounds of molybdenum.

Gibraltar Outlook: Average head grade is expected to be approximately 0.30% in 2017. Overall, Gibraltar has achieved a stable level of operations consistent with the updated reserve model published in 2015 and the company continues to focus on further improvements to operating practices to reduce unit costs. During September 2016, the molybdenum circuit at Gibraltar was successfully restarted, and will continue to contribute by-product credits in future periods.

$NAK is soaring this morning because of a letter sent to the EPA by House Comittee Chair for Science, Space and Technology, Lamar Smith, requesting that the EPA grant NAK a permit to mine in their Pebble Mine property in Bristol Bay, Alaska. This had been barred under Obama’s EPA due to the clean air act and many have played NAK as a proxy for Trump’s victory — believing his version of the EPA would be more lenient on these issues.

The stock is absolutely soaring this morning on this news.