Taseko Mines Posts Strong Quarterly Financial Results Amid Increased Production

Taseko Mines Posts Strong Quarterly Financial Results Amid Increased Production

Financial Highlights

Taseko Mines has delivered a solid financial performance in the third quarter of 2023, marked by an Adjusted EBITDA of $63 million. The company’s earnings from mining operations stood robust at $65 million before accounting for certain costs, while net earnings for the quarter reached $20 million.

Operational Efficiency

The Gibraltar Mine, primarily owned by Taseko and situated in British Columbia, reported a boost in output, producing 35 million pounds of copper and 369 thousand pounds of molybdenum. Enhanced mining processes contributed to this uptick in production, coupled with a reduction in the average production cost of copper to US$2.20 per pound.

Logistical Setbacks

Despite facing shipping interruptions due to a port workers’ strike, Taseko anticipates clearing the backlog of shipments in the subsequent quarter.

Regulatory Advancements

The Florence Copper project, located in the United States, crossed a significant milestone by obtaining the last needed permit from the Environmental Protection Agency. Taseko is gearing up for construction and preliminary work set to commence later in the year.

Quarterly Earnings and Operations Cash Flow

The company’s earnings before certain deductions were reported at $65.4 million, with operating cash flows standing at $27.0 million. The GAAP net income was $0.9 million, which adjusted to $19.7 million after accounting for unrealized foreign exchange and derivative losses.

Molybdenum’s Positive Impact

Increased production and favorable market prices for molybdenum have provided a financial boost for Taseko, with significant by-product credits adding to the quarter’s success.

Production Forecast and Price Protection

Gibraltar Mine is on course to achieve its annual production target of 115 million pounds of copper. Taseko has also implemented price protection strategies to ensure minimum copper prices until early 2024.

Florence Copper Project Update

With all necessary permits in hand, Taseko is moving forward with the Florence Copper project, initiating procurement and staffing for the upcoming construction and operations phases.

Investment and Financing

In 2023, Taseko has invested $45.0 million in the Florence project and secured a portion of the project financing through a loan. The company continues to seek additional funding sources.

Strategic Focus

Taseko reaffirms its strategic commitment to the acquisition and development of copper projects in politically stable jurisdictions, with several development ventures underway in British Columbia.

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