Taseko Mines Announces Q2 2024 Financial Results and Updates on Florence Copper Project
Taseko Mines reported its financial and operational performance for the second quarter of 2024 and provided updates on the Florence Copper project construction. This report should be considered alongside the company’s financial statements and Management Discussion & Analysis, accessible on the company’s website and SedarPlus.
In March 2024, Taseko Mines acquired the remaining 12.5% stake in the Gibraltar Mine, bringing its ownership to 100%. The mine is situated north of Williams Lake in south-central British Columbia. All production and sales figures are presented on a 100% basis.
For the second quarter ending July 31, 2024, Taseko Mines reported an Adjusted EBITDA of $71 million and earnings from mining operations before depletion and amortization of $77 million. The company benefited from a $26 million insurance recovery following mill repairs completed in January, contributing to the quarter’s revenues of $138 million. Despite this, a net loss of $11 million, or $0.04 per share, was recorded, while adjusted net income stood at $31 million, or $0.10 per share.
During the quarter, the Gibraltar Mine produced 20 million pounds of copper and 185 thousand pounds of molybdenum. Production was affected by scheduled downtime for the relocation of the in-pit crusher, other maintenance activities, and an 18-day labor strike that halted operations. The mill processed 5.7 million tons of ore, with an average copper grade of 0.23%. Copper recoveries averaged 78%, lower than previous quarters due to operational disruptions. The total operating costs (C1) were US$2.99 per pound of copper, reflecting the lower production levels. The relocation of the in-pit crusher, a project two years in the making, was completed this quarter, with the system now operating at full capacity following the completion of conveyor and electrical tie-ins by mid-July.
Stuart McDonald, President and CEO of Taseko Mines, noted, "This was our first full quarter with 100% ownership of Gibraltar, and despite the operational disruptions, the mine's financial performance was robust, generating $35 million in operating cash flow. With major projects and maintenance at Gibraltar now complete, we anticipate stronger copper production and cash flow in the second half of the year."
The Florence Copper project construction activities have intensified, with over 200 contractors on site. Significant progress includes the completion of concrete foundations for the SX/EW plant, tank farms, and other crucial plant components. By the end of June, 18 production wells were completed, aligning with the project schedule, and the development of the pipeline corridor is progressing well. The first evaporation pond, prioritized for better water management, is nearing completion with full lining expected in the coming weeks.
Mr. McDonald added, "We're pleased with the construction progress at Florence as all key activities are advancing as planned. We've successfully recruited key management and technical staff for the commercial operation, with nearly half of the 170 permanent positions filled. Many hires are local Arizonans, excited about contributing to America's next copper mine. The project remains on track for first copper production in the fourth quarter of 2025."
