REG-Taseko Announces Second Quarter Financial and Operational Results
06/08/2025 22:45
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250806:nGNE8N4Jmj&default-theme=true
VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Taseko Mines
Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the "Company")
reports second quarter 2025 Adjusted EBITDA* of $17 million, net income of $22
million ($0.07 per share) and an Adjusted net loss* of $13 million ($0.04 loss
per share). Revenues for the second quarter were $116 million from the sale of
19 million pounds of copper and 178 thousand pounds of molybdenum.
Second quarter copper production at Gibraltar was in line with plan and mining
operations made significant headway opening up the Connector pit. Tons mined
was 31% higher than the first quarter, and the improved mining rates have set
the mine up to deliver the expected higher grades in the second half of the
year. The mine produced 20 million pounds of copper and 180 thousand pounds of
molybdenum in the second quarter at Total operating costs (C1)* of US$3.14 per
pound of copper produced. Mill throughput averaged 84,200 tons per day at
average copper grades of 0.20% and copper recoveries were 63%. Recoveries
continued to be impacted by both low grades and also high oxide and secondary
mineralization. Second quarter copper production also includes the first
copper cathodes from Gibraltar’s newly refurbished SX/EW plant which
restarted in late May after being idle since 2015. After a quick ramp up in
June and July, the plant is now operating at a steady state.
Construction activities at Florence Copper continue to advance on schedule and
the project remains on track to achieve first copper cathode production before
the end of 2025. At the end of June, overall project completion was over 90%
and US$239 million had been incurred on construction in the last 18 months.
Construction spending was lower than the prior quarter and, with approximately
90% of total expected construction costs now incurred, spending will decline
again in the third quarter as construction activities wind down.
Stuart McDonald, President & CEO of Taseko, commented, “I am very pleased
with progress at Florence Copper, where our project team has done an excellent
job maintaining the project schedule and budget, without compromising the
safety of our contractors or employees at site. Construction activities will
soon be shifting to commissioning of the SX/EW plant systems and beginning
wellfield operations. With less than six months until anticipated first
production, this is an exciting time for our Company. We still have a lot of
work ahead to complete construction and ramp up copper production, but the
more than ten years of effort to get us here is about to payoff.
At Gibraltar, mining operations have made good progress advancing deeper into
the Connector Pit and we’re looking forward to a much stronger second half.
The expected higher grades and improved recoveries will lead to increased
copper production and stronger cash flows.
Despite the recent volatility in Comex copper prices, we remain in a healthy
copper price environment and it’s great timing to be growing our copper
production base with a new US-based operation. With lowest quartile operating
costs, Florence Copper will begin to generate strong cashflows next year as it
ramps up to design capacity.”
*Non-GAAP performance measure. See end of news release.
Mr. McDonald continued, “Another important goal for us is to unlock value
from our longer-term growth portfolio, and in recent months we’ve achieved
some significant milestones with those projects. We published an updated
technical study for Yellowhead, which showed a significant improvement in
project economics. At a copper price of US$4.25 per pound, Yellowhead has an
after-tax NPV (8%) of $2 billion and a 21% internal rate of return. With
average annual copper production of 178 million pounds over 25 years,
Yellowhead represents a high quality, longer-term growth option for Taseko.
Also, in early July the Environmental Assessment process was formally
initiated with the filing and acceptance of the Initial Project Description.
We will look to unlock further value from Yellowhead as it advances through
the permitting process, and as we progress other technical and financing
aspects of the project.”
“Another significant development was the recent agreement reached with
Tŝilhqot'in Nation and Province of BC on our New Prosperity Project. The
payment of $75 million was received from the Province of BC during the second
quarter and Taseko retains a 77.5% interest in the project. We believe this
agreement could potentially open a pathway for the mine to be developed in the
future, but only with the Tŝilhqot’in Nation’s consent.
With Florence Copper just months away from first production and with
Yellowhead now moving forward into permitting, we are making significant
strides advancing our long-term strategy to become a North American
multi-asset copper miner,” concluded Mr. McDonald.
Second Quarter Review
* Earnings from mining operations before depletion, amortization and
non-recurring items* was $20.7 million, Adjusted EBITDA* was $17.4 million and
cash flows from operations was $26.0 million;
* Net income was $21.9 million ($0.07 per share) and Adjusted net loss* was
$13.0 million ($0.04 loss per share) after removal of unrealized foreign
exchange gains on the Company’s US dollar-denominated debt;
* Gibraltar produced 19.8 million pounds of copper at a total operating (C1)
cost* of US$3.14 per pound of copper produced. Copper head grade was 0.20%
and recovery was 63% for the quarter reflecting the continued processing of
lower grade stockpiled material which also had higher oxidation;
* Gibraltar sold 19.0 million pounds of copper at an average realized copper
price of US$4.32 per pound and at an average Canadian dollar exchange rate of
1.38, contributing to revenues of $116.1 million for Taseko;
* At June 30, 2025, construction of the Florence Copper commercial production
facility was over 90% complete and remains on schedule for first copper
production before the end of the year. All 90 injection and recovery wells
planned for the construction phase have now been drilled and completed.
Construction of the solvent extraction and electrowinning areas continue to
advance, with the installation of major components well underway;
*Non-GAAP performance measure. See end of news release.
* In June 2025, Taseko, Tŝilhqot’in Nation and the Province of BC reached
an agreement concerning the New Prosperity project. Taseko received a
payment of $75 million from the Province of BC on closing of the transaction
in the second quarter;
* In July 2025, the Company filed an updated technical report on the
Yellowhead project highlighting an after-tax net present value of $2.0 billion
for the project (8% after-tax discount rate), after-tax internal rate of
return of 21%, and payback period of 3.3 years. The Company also announced
that it had submitted an Initial Project Description for the Yellowhead
project and formally commenced the Environmental Assessment process with
regulators;
* The Company has copper collar contracts in place to secure a minimum copper
price of US$4.00 per pound for 54 million pounds of copper for the remainder
of 2025; and,
* At June 30, 2025, the Company had a cash balance of $122.0 million and
available liquidity of $197.0 million including the undrawn portion of its
corporate revolving credit facility.
*Non-GAAP performance measure. See end of news release.
Highlights
Operating data Three months ended Six months ended
June 30, June 30,
(Gibraltar – 100% basis) 2025 2024 Change 2025 2024 Change
Tons mined (millions) 30.4 18.4 12.0 53.6 41.2 12.4
Tons milled (millions) 7.7 5.7 2.0 15.6 13.4 2.2
Production (million pounds Cu) 19.8 20.2 (0.4 ) 39.8 49.9 (10.1 )
Sales (million pounds Cu) 19.0 22.6 (3.6 ) 40.8 54.3 (13.5 )
Financial Data Three months ended Six months ended
(Cdn$ in thousands, except for per share amounts) June 30, June 30,
2025 2024 Change 2025 2024 (1) Change
Revenues 116,082 137,730 (21,648 ) 255,231 284,677 (29,446 )
Cash flows from operations 25,954 34,711 (8,757 ) 81,846 94,285 (12,439 )
Net income (loss) 21,868 (10,953 ) 32,821 (6,692 ) 7,943 (14,635 )
Per share – basic (“EPS”) 0.07 (0.04 ) 0.11 (0.02 ) 0.03 (0.05 )
Earnings from mining operations before depletion, amortization and non-recurring items* 20,700 76,928 (56,228 ) 59,491 129,725 (70,234 )
Adjusted EBITDA* 17,432 70,777 (53,345 ) 51,682 120,700 (69,018 )
Adjusted net (loss) income* (13,025 ) 30,503 (43,528 ) (19,968 ) 38,231 (58,199 )
Per share – basic (“Adjusted EPS”)* (0.04 ) 0.10 (0.14 ) (0.06 ) 0.13 (0.19 )
(1)On March 25, 2024, the Company completed its acquisition of the remaining 50% interest in Cariboo Copper Corp. (“Cariboo”) from Dowa Metals & Mining Co., Ltd. (“Dowa”) and Furukawa Co., Ltd. (“Furukawa”) and increased its effective interest in Gibraltar from 87.5% to 100%. As a result, the financial results reported in this MD&A reflect the Company’s 87.5% effective interest from March 15, 2023 to March 25, 2024 and 100% effective interest thereafter. For more information on the Company’s acquisition of
Cariboo, refer to the Financial Statements—Note 12a.
*Non-GAAP performance measure. See end of news release.
Review of Operations
Gibraltar
Operating data (100% basis) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Tons mined (millions) 30.4 23.2 24.0 23.2 18.4
Tons milled (millions) 7.7 7.9 8.3 7.6 5.7
Strip ratio 2.3 4.6 1.9 1.2 1.6
Site operating cost per ton milled* $ 11.23 $ 8.73 $ 12.18 $ 14.23 $ 13.93
Copper concentrate
Head grade (%) 0.20 0.19 0.22 0.23 0.23
Copper recovery (%) 63.2 67.5 78.2 78.9 77.7
Production (million pounds Cu) 19.4 20.0 28.6 27.1 20.2
Sales (million pounds Cu) 19.0 21.8 27.4 26.3 22.6
Inventory (million pounds Cu) 2.7 2.3 4.1 2.9 2.3
Copper cathode
Production (thousand pounds Cu) 395 – – – –
Sales (thousand pounds Cu) – – – – –
Molybdenum concentrate
Production (thousand pounds Mo) 180 336 578 421 185
Sales (thousand pounds Mo) 178 364 607 348 221
Per unit data (US$ per Cu pound produced) (1)
Site operating cost* $ 3.15 $ 2.41 $ 2.52 $ 2.91 $ 2.88
By-product credit* (0.19 ) (0.33 ) (0.42 ) (0.25 ) (0.26 )
Site operating cost, net of by-product credit* 2.96 2.08 2.10 2.66 2.62
Off-property cost* 0.18 0.18 0.32 0.26 0.37
Total operating (C1) cost* $ 3.14 $ 2.26 $ 2.42 $ 2.92 $ 2.99
(1)Copper pounds produced includes both copper in concentrate and copper cathode.
Operations Analysis
Second Quarter Review
Mining operations continued to advance through the upper sections of the
Connector pit, opening up the deeper, higher quality ore zones for the next
phase of mining. A total of 30.4 million tons were mined in the second
quarter, a 30% increase over the prior quarter due to increased productivity
of the mining fleet. Approximately 65% of the ore mined in the quarter was
oxide ore, which was added to the heap leach pads and contributed to a lower
strip ratio.
*Non-GAAP performance measure. See end of news release.
Operations Analysis - Continued
Lower-grade stockpiled ore continued to be the primary source of mill feed in
the quarter, resulting in copper production levels similar to the first
quarter. Gibraltar produced 19.4 million pounds of copper in concentrate in
the second quarter. Copper head grade was 0.20% and recovery was 63%,
impacted by oxidation and supergene material in the stockpiled ore which
mainly originated from the upper benches of the Connector pit. Mill
throughput was 7.7 million tons in the quarter and remained consistently at
nameplate capacity throughout the quarter.
In the second quarter, Gibraltar completed the refurbishment and successfully
restarted its solvent extraction and electrowinning (“SX/EW”) plant which
had been idle since 2015 and produced 395 thousand pounds of copper cathode.
Capitalized stripping costs totaling $30.8 million remained higher in the
second quarter attributable to a higher than normal strip ratio for sulphide
ore tons in the Connector pit. Total site costs* including capitalized
stripping was $116.8 million in the quarter, higher than the prior quarter
primarily due to higher mining rates. Total site costs were also higher than
the prior year quarter due to mill downtime in 2024 related to a labour strike
and crusher relocation project.
Molybdenum production was 180 thousand pounds in the second quarter,
comparable to 185 thousand pounds in the comparative prior year quarter. At
an average molybdenum price of US$20.71 per pound for the quarter, molybdenum
contributed a by-product credit of US$0.19 per pound of copper produced.
Off-property costs of US$0.18 per pound of copper produced were consistent
with the prior quarter and reflect Gibraltar’s 2025 offtake agreements with
average treatment and refining charges (“TCRC”) of $nil for the year.
Total operating (C1) costs* were US$3.14 per pound of copper produced in the
second quarter compared to US$2.99 per pound of copper produced in the
comparative prior year quarter. The increase in total operating (C1) costs
was attributable to low site operating costs in the prior year from mill
downtime, as well as lower copper production and lower molybdenum by-product
credits in the current quarter, partially offset by higher capitalized
stripping costs and lower off-property costs as outlined in the bridge graph
below:
*Non-GAAP performance measure. See end of news release.
Operations Analysis - Continued
https://www.globenewswire.com/NewsRoom/AttachmentNg/df87bda2-56b8-4686-baef-a7d4ff25f5e6
Gibraltar Outlook
Mining activity will continue to advance in the Connector pit, which will be
the primary source of mill feed for the remainder of 2025 and the years
ahead. Significant increases in head grades and recoveries, and higher mill
throughput from processing the softer Connector pit ore, are expected in the
second half of 2025 and continuing into 2026. Copper production for the year
is expected to be 110 to 120 million pounds, including cathode production.
Molybdenum production is also forecast to increase in the second half of 2025
as molybdenum grades are expected to be notably higher in Connector pit ore.
The Company has offtake agreements covering Gibraltar concentrate production
in 2025 and 2026, which contain significantly lower and in certain cases
negative (premium) TCRC rates reflecting the tight copper smelting market.
Offtake agreements are in place for substantially all of Gibraltar’s copper
concentrate production in 2025 and 2026, and, based on the contract terms, the
Company expects average TCRCs to be to around $nil in 2025 and 2026.
The Company has a prudent hedging program in place to protect a minimum copper
price and Gibraltar cash flow during the Florence Copper construction
period. Currently, the Company has copper collar contracts in place that
secure a minimum copper price of US$4.00 per pound for 54 million pounds of
copper production for the remainder of 2025 (refer to “Financial Condition
Review—Hedging Strategy” for details).
*Non-GAAP performance measure. See end of news release.
Florence Copper
The Company has all the key permits in place for the commercial production
facility at Florence and construction continues to advance on schedule. Over
900,000 project hours have been worked with no reportable injuries or
environmental incidents. The Company has a fixed-price contract with the
general contractor for construction of the SX/EW plant and associated surface
infrastructure and activities are beginning to wind down from peak spend in
the first quarter.
All injection and recovery wells planned to be drilled during the construction
phase were completed as of June 30, 2025. Remaining construction activities
are advancing on plan and project areas will soon start transitioning to
commissioning.
Operational readiness remains a key focus for site management. Site
activities are focused on hiring additional personnel and developing detailed
operating plans for the ramp up of production, which is expected to begin
before the end of this year.
Florence Copper capital spend (US$ in thousands) Three months ended June 30, 2025 Six months ended June 30, 2025
Commercial facility construction costs 32,956 84,320
Site and PTF operations 8,276 14,345
Total Florence Copper capital spend 41,232 98,665
Florence Copper commercial facility construction costs were US$33.0 million in
the second quarter and US$239.3 million has been incurred on the Florence
Copper commercial facility construction as of June 30, 2025.
The Company has a technical report titled “NI 43-101 Technical Report
Florence Copper Project, Pinal County, Arizona” dated March 30, 2023 (the
“Florence 2023 Technical Report”) on SEDAR+. The Florence 2023 Technical
Report was prepared in accordance with National Instrument 43‑101 (“NI
43-101”) and incorporated the results of test work from the production test
facility (“PTF”) as well as updated capital and operating costs (Q3 2022
basis) for the commercial production facility.
Project highlights based on the Florence 2023 Technical Report are detailed
below:
* Net present value of US$930 million (at US$3.75 copper price, 8% after-tax
discount rate);
* After-tax internal rate of return of 47%;
* Payback period of 2.6 years;
* Operating costs (C1) of US$1.11 per pound of copper produced;
* Annual production capacity of 85 million pounds of LME grade A copper
cathode;
* Mine life of 22 years;
* Total life of mine production of 1.5 billion pounds of copper; and
* Initial capital cost of US$232 million (Q3 2022 basis).
Florence Copper - Continued
Based on the Florence 2023 Technical Report, the estimated construction costs
for the Florence Copper commercial production facility were US$232 million and
management continues to expect that total construction costs will be within
10% to 15% of this estimate.
Long-term Growth Strategy
Taseko’s strategy has been to grow the company by acquiring and developing a
pipeline of projects focused on copper in North America. We continue to
believe this will generate long-term returns for shareholders. Our other
development projects are located in BC, Canada.
Yellowhead Copper Project
The Yellowhead copper project (“Yellowhead”) is expected to produce 4.4
billion pounds of copper over a 25-year mine life at an average C1 cost, net
of by-product credit, of US$1.90 per pound of copper produced. During the
first 5 years of operation, Yellowhead is expected to produce an average of
206 million pounds of copper per year at an average C1 cost, net of by-product
credit, of US$1.62 per pound of copper produced. Yellowhead also contains
valuable precious metal by-products with 282,000 ounces of gold production and
19.4 million ounces of silver production over the life of mine.
The economic analysis in the Yellowhead 2025 Technical Report (defined below)
was prepared using a long-term copper price of US$4.25 per pound, a long-term
gold price of US$2,400 per ounce, and a long-term silver price of US$28.00 per
ounce. This report titled “Technical Report Update on the Yellowhead
Copper Project, British Columbia, Canada” (the “Yellowhead 2025 Technical
Report”) was published on July 10, 2025 under the supervision of Richard
Weymark, P. Eng., MBA, Vice President, Engineering for Taseko and a Qualified
Person as defined by NI 43‑101.
Project highlights based on the Yellowhead 2025 Technical Report are detailed
below:
* Average annual copper production of 178 million pounds over a 25 year mine
life at total cash costs (C1) of US$1.90 per pound of copper produced;
* Over the first 5 years of the mine life, copper grade is expected to average
0.32% producing an average of 206 million pounds of copper at total cash costs
(C1) of US$1.62 per pound of copper produced;
* Concentrator designed to process 90,000 tonnes per day of ore with an
expected copper recovery of 90%, and produce a clean copper concentrate with
payable gold and silver by-products;
* Conventional open pit mining with a low strip ratio of 1.4;
* After-tax net present value of $2.0 billion (8% after-tax discount rate) and
after-tax internal rate of return of 21%;
* Initial capital costs of $2.0 billion with a payback period of 3.3 years;
and
* Expected to be eligible for the Canadian federal Clean Technology
Manufacturing Investment Tax Credit, with 30% (approximately $540 million) of
eligible initial capital costs reimbursed in year 1 of operation.
Long-term Growth Strategy - Continued
In the second quarter, the project’s Initial Project Description was filed
and accepted by the British Columbia Environmental Assessment Office and
Impact Assessment Agency of Canada, formally commencing the Environmental
Assessment process. The Company has been engaging with project stakeholders
to ensure that the development of Yellowhead is in line with environmental and
social expectations. The Company opened a community Yellowhead project
office in 2024 to support ongoing engagement with local communities including
First Nations.
New Prosperity Copper-Gold project
In June 2025, Taseko, the Tŝilhqot’in Nation and the Province of BC reached
a historic agreement concerning the New Prosperity project (the “Teẑtan
Biny Agreement”). The Teẑtan Biny Agreement ends litigation among the
parties while providing certainty with respect to how the significant
copper-gold resource at New Prosperity may be developed in the future, and
meaningfully advances the goals of reconciliation in BC.
Key elements of the Teẑtan Biny Agreement include:
* Taseko received a payment of $75 million from the Province of BC upon
closing of the agreement;
* Taseko contributed a 22.5% equity interest in the New Prosperity mineral
tenures to a trust for the future benefit of the Tŝilhqot’in Nation. The
trust will transfer the property interest to the Tŝilhqot’in Nation if and
when it consents to a proposal to pursue mineral development in the project
area;
* Taseko retains a majority interest (77.5%) in the New Prosperity mineral
tenures and can divest some or all of its interest at any time, including to
other mining companies that could advance a project with the consent of the
Tŝilhqot’in Nation. However, Taseko has committed not to be the proponent
(operator) of mineral exploration and development activities at New
Prosperity, nor the owner of a future mine development;
* Taseko has entered into a consent agreement with the Tŝilhqot’in Nation,
whereby no mineral exploration or development activity can proceed in the New
Prosperity project area without the free, prior and informed consent of the
Tŝilhqot’in Nation;
* The Province of BC and the Tŝilhqot’in Nation have agreed to negotiate
the process by which the consent of the Tŝilhqot’in Nation will be sought
for any proposed mining project to proceed through an environmental assessment
process; and
* The Tŝilhqot’in Nation and the Province of BC have agreed to undertake a
land-use planning process for the area of the mineral tenures and a broader
area of land within Tŝilhqot’in territory. The Province of BC will
provide funding to the Tŝilhqot’in Nation to facilitate the land-use
planning process and for a Cultural Revitalization Fund.
Long-term Growth Strategy - Continued
Aley Niobium project
The converter pilot test is ongoing to provide additional process data to
support the design of commercial process facilities, and final product samples
to support product marketing initiatives. The Company is also conducting a
scoping study to investigate the potential for Aley niobium oxide production
to supply the growing market for niobium-based batteries.
Annual General Meeting
The Company’s Annual General Meeting was held on June 12, 2025 and
shareholders voted in favor of all items of business before the meeting,
including the continuation of the Company’s amended and restated
shareholders rights plan for a 3-year period and the advisory resolution on
executive compensation (Say-on-Pay), and the election of all director
nominees. Detailed voting results for the 2025 Annual General Meeting are
available on SEDAR+ at www.sedarplus.ca.
Annual Sustainability Report
In June 2025, the Company published its annual Sustainability Report titled
C(2) (Copper x Community) (the “Report”). The Report highlights
Taseko’s operational and sustainability achievements, with an emphasis on
the connection between copper production and the people, communities, and
social environments that support and benefit from our operations and projects.
With 20 years of successful operations under Taseko’s stewardship, 2024
marked a milestone year for the Company’s flagship operation, the Gibraltar
mine. As Canada’s second-largest copper mine, Gibraltar continues to
reflect Taseko’s commitment to operational excellence, health and safety,
and delivering ‘360° of Value’ for all stakeholders.
Florence Copper will soon become one of the lowest carbon and energy-intensive
copper producers in the world, offering domestically produced, traceable and
high-purity copper metal to support North American manufacturing and economic
security.
While profitable operations and return on investment are critical drivers for
Taseko’s success, the Company also delivers value to its employees and
operating communities, business partners, Indigenous Nations and
governments. The Report is an opportunity to showcase the important benefits
that the Company generates through its operations, investments and people.
The full report can be viewed and downloaded at
www.tasekomines.com/sustainability/overview.
Conference Call and Webcast The Company will host a telephone conference call and live webcast on Thursday August 7, 2025 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results. After opening remarks by management, there will be a question and answer session open to analysts and investors. The conference call may be accessed by dialing 800-715-9871 toll free or 646-307-1963, using the access code 2521595. The webcast may be accessed at tasekomines.com/investors/events and will be archived
until August 7, 2026 for later playback.
For further information on Taseko, see the Company’s website at
tasekomines.com or contact:
Brian Bergot, Vice President, Investor Relations – 778-373-4554
Stuart McDonald
President and CEO
No regulatory authority has approved or disapproved of the information
contained in this news release
Non-GAAP Performance Measures
This MD&A includes certain non-GAAP performance measures that do not have a
standardized meaning prescribed by IFRS. These measures may differ from
those used by, and may not be comparable to such measures as reported by,
other issuers. The Company believes that these measures are commonly used by
certain investors, in conjunction with conventional IFRS measures, to enhance
their understanding of the Company’s performance. These measures have been
derived from the Company’s financial statements and applied on a consistent
basis. The following tables below provide a reconciliation of these non-GAAP
measures to the most directly comparable IFRS measures.
Total operating cost and site operating cost, net of by-product credit
Total operating cost includes all costs absorbed into inventory, as well as
transportation costs and insurance recoverable. Site operating cost is
calculated by removing net changes in inventory, depletion and amortization,
insurance recoverable, and transportation costs from cost of sales. Site
operating cost, net of by-product credit is calculated by subtracting
by-product credits from site operating cost. Site operating cost, net of
by-product credit per pound is calculated by dividing the aggregate of the
applicable costs by pounds of copper produced. Total operating cost per
pound is the sum of site operating costs, net of by-product credits and
off-property costs divided by pounds of copper produced. By-product credit
is calculated based on actual sales of molybdenum (net of treating costs) and
silver during the period divided by the total pounds of copper produced during
the period. These measures are calculated on a consistent basis for the
periods presented.
(Cdn$ in thousands, unless otherwise indicated) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Cost of sales 120,592 122,783 134,940 124,883 108,637
Less:
Depletion and amortization (25,210 ) (22,425 ) (24,641 ) (20,466 ) (13,721 )
Net change in inventories of finished goods 2,123 (2,710 ) 4,064 2,938 (10,462 )
Net change in inventories of ore stockpiles (5,718 ) (22,747 ) (3,698 ) 9,089 1,758
Transportation costs (5,720 ) (5,984 ) (10,170 ) (8,682 ) (6,408 )
Site operating cost 86,067 68,917 100,495 107,712 79,804
Less by-product credits:
Molybdenum, net of treatment costs (4,814 ) (8,774 ) (16,507 ) (8,962 ) (7,071 )
Silver, excluding amortization of deferred revenue (58 ) (131 ) (139 ) (241 ) (144 )
Gold, net of refining costs (350 ) (389 ) – – –
Site operating cost, net of by-product credit 80,845 59,623 83,849 98,509 72,589
Total pounds of copper produced (thousand pounds) 19,813 19,959 28,595 27,101 20,225
Total costs per pound produced 4.08 2.99 2.94 3.63 3.59
Average exchange rate for the period (Cdn$ / US$) 1.38 1.44 1.40 1.36 1.37
Site operating cost, net of by-product credits (US$ per pound) $ 2.96 $ 2.08 $ 2.10 $ 2.66 $ 2.62
Site operating cost, net of by-product credit 80,845 59,623 83,849 98,509 72,589
Add off-property costs:
Treatment and refining costs (837 ) (510 ) 2,435 816 3,941
Transportation costs 5,720 5,984 10,170 8,682 6,408
Total operating cost 85,728 65,097 96,454 108,007 82,938
Total operating cost (C1) (US$ per pound) $ 3.14 $ 2.26 $ 2.42 $ 2.92 $ 2.99
Non-GAAP Performance Measures - Continued
Total site costs
Total site costs include site operating costs charged to cost of sales and
mining costs capitalized to property, plant and equipment in the period.
This measure is intended to capture total site operating costs incurred during
the period calculated on a consistent basis for the periods presented.
(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Site operating costs 86,067 68,917 100,495 107,712 79,804
Capitalized stripping costs 30,765 38,082 1,981 3,631 10,732
Total site costs – 100% basis 116,832 106,999 102,476 111,343 90,536
Adjusted net income (loss) and Adjusted EPS
Adjusted net income (loss) removes the effect of the following transactions
from net income (loss) as reported under IFRS:
* Unrealized foreign currency gains and losses;
* Unrealized derivative gains and losses;
* Other operating costs;
* Call premium on settlement of debt;
* Loss on settlement of debt, net of capitalized interest;
* Bargain purchase gains on Cariboo acquisition;
* Gain on acquisition of control of Gibraltar;
* Realized gain on sale of finished goods inventory;
* Inventory write-ups to fair value that was sold or processed;
* Accretion on Florence royalty obligations;
* Accretion on Cariboo consideration payable;
* Tax effect of sale of non-recurring interest; and
* Non-recurring other expenses for Cariboo adjustment.
Management believes these transactions do not reflect the underlying operating
performance of the Company’s core mining business and are not necessarily
indicative of future operating results. Furthermore, unrealized gains and
losses on derivative instruments, changes in the fair value of financial
instruments, and unrealized foreign currency gains and losses are not
necessarily reflective of the underlying operating results for the periods
presented.
Adjusted earnings per share (“Adjusted EPS”) is Adjusted net income
attributable to common shareholders of the Company divided by the weighted
average number of common shares outstanding for the period.
Non-GAAP Performance Measures - Continued
(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024
Net income (loss) 21,868 (28,560 ) (21,207 ) (180 )
Unrealized foreign exchange (gain) loss (40,335 ) 2,074 40,462 (7,259 )
Unrealized derivative loss (gain) and fair value adjustments 9,489 23,536 (25,514 ) 1,821
Other operating costs (1) – – 4,132 4,098
Inventory write-ups to fair value that was sold or processed (2) – – 1,905 3,266
Accretion on Florence royalty obligation 6,201 2,571 3,682 3,703
Accretion on Cariboo consideration payable 4,484 664 4,543 9,423
Tax effect of sale of non-controlling interest (9,285 ) – – –
Estimated tax effect of adjustments (5,447 ) (7,228 ) 2,465 (6,644 )
Adjusted net (loss) income (13,025 ) (6,943 ) 10,468 8,228
Adjusted EPS $ (0.04 ) $ (0.02 ) $ 0.03 $ 0.03
(1 )Other operating costs relate to the in-pit crusher relocation project and care and maintenance costs due to the June 2024 labour strike. (2 )Inventory write-ups to net realizable value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted net (loss) income in the period when the inventories were sold or processed.
Non-GAAP Performance Measures - Continued
(Cdn$ in thousands) Q2 2024 Q1 2024 Q4 2023 Q3 2023
Net (loss) income (10,953 ) 18,896 38,076 871
Unrealized foreign exchange loss (gain) 5,408 13,688 (14,541 ) 14,582
Unrealized derivative loss and fair value adjustment 10,033 3,519 1,636 4,518
Other operating costs (1) 10,435 – – –
Call premium on settlement of debt 9,571 – – –
Loss on settlement of debt, net of capitalized interest 2,904 – – –
Gain on Cariboo acquisition – (47,426 ) – –
Gain on acquisition of control of Gibraltar (2) – (14,982 ) – –
Realized gain on sale of inventory (3) 3,768 13,354 – –
Inventory write-ups to fair value that was sold or processed (4) 4,056 – – –
Accretion on Florence royalty obligation 2,132 3,416 – –
Accretion on Cariboo consideration payable 8,399 1,555 – –
Non-recurring other expenses for Cariboo adjustment 394 138 (916 ) 1,244
Estimated tax effect of adjustments (15,644 ) 15,570 (194 ) (1,556 )
Adjusted net income 30,503 7,728 24,061 19,659
Adjusted EPS $ 0.10 $ 0.03 $ 0.08 $ 0.07
(1 )Other operating costs relate to the in-pit crusher relocation project and care and maintenance costs due to the June 2024 labour strike. (2 )Gain on acquisition of control of Gibraltar relates to the write-up of copper concentrate inventory to fair value for Taseko’s 87.5% interest in Gibraltar at March 25, 2024. (3 )Realized gain on sale of inventory relates to copper concentrate inventory held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and
subsequently sold. The realized portion of these gains have been added back to Adjusted net income in the period the inventory was sold. (4 )Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted net income in the period the inventories were sold or processed.
Non-GAAP Performance Measures - Continued
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization
(“Adjusted EBITDA”) is presented as a supplemental measure of the
Company’s performance and ability to service debt. Adjusted EBITDA is
frequently used by securities analysts, investors and other interested parties
in the evaluation of companies in the industry, many of which present adjusted
EBITDA when reporting their results. Issuers of “high yield” securities
also present adjusted EBITDA because investors, analysts and rating agencies
considering it useful in measuring the ability of those issuers to meet debt
service obligations.
Adjusted EBITDA represents net income before interest, income taxes,
depreciation and amortization, and also eliminates the impact of a number of
transactions that are not considered indicative of ongoing operating
performance. Certain items of expense are added back and certain items of
income are deducted from net income that are not likely to recur or are not
indicative of the Company’s underlying operating results for the reporting
periods presented or for future operating performance and consist of:
* Unrealized foreign exchange gains and losses;
* Unrealized derivative gains and losses;
* Amortization of share-based compensation expense;
* Other operating costs;
* Call premium on settlement of debt;
* Loss on settlement of debt;
* Bargain purchase gains on Cariboo acquisition;
* Gain on acquisition of control of Gibraltar;
* Realized gains on sale of finished goods inventory;
* Inventory write-ups to net realizable value that was sold or processed; and
* Non-recurring other expenses for Cariboo acquisition.
(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024
Net income (loss) 21,868 (25,814 ) (21,207 ) (180 )
Depletion and amortization 25,210 22,458 24,641 20,466
Finance and accretion expenses 23,943 15,567 21,473 25,685
Finance income (124 ) (1,330 ) (1,674 ) (1,504 )
Income tax (recovery) expense (27,439 ) (6,900 ) 11,707 (200 )
Unrealized foreign exchange (gain) loss (40,335 ) 2,074 40,462 (7,259 )
Unrealized derivative loss (gain) and fair value adjustments 9,489 22,846 (25,514 ) 1,821
Share-based compensation expense (recovery) 4,820 5,349 (323 ) 1,496
Other operating costs – – 4,132 4,098
Inventory write-ups to fair value that was sold or processed (1) – – 1,905 3,266
Adjusted EBITDA 17,432 34,250 55,602 47,689
(1)Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted EBITDA in the period when the inventories were processed.
Non-GAAP Performance Measures - Continued
(Cdn$ in thousands) Q2 2024 Q1 2024 Q4 2023 Q3 2023
Net (loss) income (10,953 ) 18,896 38,076 871
Depletion and amortization 13,721 15,024 13,326 15,993
Finance and accretion expense 21,271 19,849 12,804 14,285
Finance income (911 ) (1,086 ) (972 ) (322 )
Income tax (recovery) expense (3,247 ) 23,282 17,205 12,041
Unrealized foreign exchange loss (gain) 5,408 13,688 (14,541 ) 14,582
Unrealized derivative loss 10,033 3,519 1,636 4,518
Share-based compensation expense 2,585 5,667 1,573 727
Other operating costs 10,435 – – –
Call premium on settlement of debt 9,571 – – –
Loss on settlement of debt 4,646 – – –
Gain on Cariboo acquisition – (47,426 ) – –
Gain on acquisition of control of Gibraltar (1) – (14,982 ) – –
Realized gain on sale of inventory (2) 3,768 13,354 – –
Inventory write-ups to fair value that was sold or processed (3) 4,056 – – –
Non-recurring other expenses for Cariboo acquisition 394 138 – –
Adjusted EBITDA 70,777 49,923 69,107 62,695
(1)Gain on acquisition of control of Gibraltar relates to the write-up of copper concentrate inventories to fair value for Taseko’s 87.5% interest in Gibraltar at March 25, 2024. (2)Realized gain on sale of inventory relates to copper concentrate inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold. The realized portion of these gains have been added back to Adjusted EBITDA in the period the inventory was sold.
(3)Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted EBITDA in the period when the inventories were processed
Non-GAAP Performance Measures - Continued
Earnings from mining operations before depletion, amortization and
non-recurring items
Earnings from mining operations before depletion, amortization and
non-recurring items is earnings from mining operations with depletion and
amortization, and any items that are not considered indicative of ongoing
operating performance added back. The Company discloses this measure, which
has been derived from the Company’s financial statements and applied on a
consistent basis, to assist in understanding the results of the Company’s
operations and financial position, and it is meant to provide further
information about the financial results to investors.
Three months ended Six months ended
June 30, June 30,
(Cdn$ in thousands) 2025 2024 2025 2024
(Loss) earnings from mining operations (502 ) 44,948 15,864 69,367
Add:
Depletion and amortization 25,210 13,721 47,635 28,745
Realized gain on sale of inventory (1) – 4,633 – 17,987
Realized gain on processing of ore stockpiles (2) – 3,191 – 3,191
Other operating (income) costs (4,008 ) 10,435 (4,008 ) 10,435
Earnings from mining operations before depletion, amortization and non-recurring items 20,700 76,928 59,491 129,725
(1)Realized gain on sale of inventory relates to copper concentrate inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold. The realized portion of these gains have been added back to earnings from mining operations in the period the inventory was sold. (2)Realized gain on processing of ore stockpiles relates to stockpile inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of
control of Gibraltar, and subsequently processed. These write-ups have been added back to earnings from mining operations in the period the inventories were processed.
Site operating costs per ton milled
The Company discloses this measure, which has been derived from the
Company’s financial statements and applied on a consistent basis, to provide
assistance in understanding the Company’s site operations on a tons milled
basis.
(Cdn$ in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Site operating costs (included in cost of sales) 86,067 68,917 100,495 107,712 79,804
Tons milled (thousands) 7,663 7,898 8,250 7,572 5,728
Site operating costs per ton milled $ 11.23 $ 8.73 $ 12.18 $ 14.23 $ 13.93
Technical Information
The technical information contained in this MD&A related to Florence Copper is
based on the report titled “NI 43‑101 Technical Report – Florence
Copper Project, Pinal County, Arizona” issued on March 30, 2023 with an
effective date of March 15, 2023, which is available on SEDAR+. The Florence
2023 Technical Report was prepared under the supervision of Richard Tremblay,
P. Eng., MBA, Richard Weymark, P. Eng., MBA, and Robert Rotzinger, P. Eng.
Mr. Tremblay is employed by the Company as Chief Operating Officer, Mr.
Weymark is employed by the Company as Vice President, Engineering, and Mr.
Rotzinger is employed by the Company as Vice President, Capital Projects.
All three are Qualified Persons as defined by NI 43‑101.
The technical information contained in this MD&A related to Yellowhead is
based on the report titled “Technical Report Update on the Yellowhead Copper
Project, British Columbia, Canada” issued on July 10, 2025 with an effective
date of June 15, 2025, which is available on SEDAR+. The Yellowhead 2025
Technical Report was prepared under the supervision of Richard Weymark, P.
Eng., MBA. Mr. Weymark is employed by the Company as Vice President,
Engineering and is a Qualified Person as defined by NI 43-101.
Caution Regarding Forward-Looking Information
This document contains “forward-looking statements” that were based on
Taseko’s expectations, estimates and projections as of the dates as of which
those statements were made. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as “outlook”,
“anticipate”, “project”, “target”, “believe”, “estimate”,
“expect”, “intend”, “should” and similar expressions.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the Company’s actual results,
level of activity, performance or achievements to be materially different from
those expressed or implied by such forward-looking statements. These included
but are not limited to:
* uncertainties about the future market price of copper and the other metals
that we produce or may seek to produce;
* changes in general economic conditions, the financial markets and in the
market price for our input costs including due to inflationary impacts, such
as diesel fuel, acid, steel, concrete, electricity and other forms of energy,
mining equipment, and fluctuations in exchange rates, particularly with
respect to the value of the U.S. dollar and Canadian dollar, and the continued
availability of capital and financing;
* inherent risks associated with mining operations, including our current
mining operations at Gibraltar and our planned mining operations at Florence
Copper, and their potential impact on our ability to achieve our production
estimates;
* uncertainties as to our ability to achieve reduced costs for Gibraltar (as
defined below) and to otherwise control our operating costs without impacting
our planned copper production;
* our high level of indebtedness and its potential impact on our financial
condition and the requirement to generate cash flow to service our
indebtedness and refinance such indebtedness from time to time;
* the increases in interest rates, by central banks may increase our borrowing
costs and impact the profitability of our operations;
* our ability to draw down on our financing arrangements for the construction
of Florence Copper is subject to our meeting the required conditions for
drawdown;
* the amounts we are required to pay for our acquisition of Cariboo will
increase with higher copper prices;
* the risk of inadequate insurance or inability to obtain insurance to cover
our business risks;
* uncertainties related to the accuracy of our estimates of Mineral Reserves
(as defined below), Mineral Resources (as defined below), production rates and
timing of production, future production and future cash and total costs of
production and milling;
* the risk that we may not be able to expand or replace Mineral Reserves as
our existing Mineral Reserves are mined;
* the risk that the results from our development of Florence Copper will not
meet our estimates of remaining construction costs, operating expenses,
revenue, rates of return and cash flows from operations which have been
projected by the technical report for Florence;
* the risk of cost overruns or delays in our construction of the commercial
facilities at Florence Copper, resulting in not commencing commercial
production within our current projected timeline or within our current
projected cost estimates;
* uncertainties related to the execution plan for the construction of Florence
Copper and the commencement of commercial operations resulting from inflation
risk, supply chain disruptions, material and labour shortages or other
execution risks;
* our ability to comply with all conditions imposed under the APP and UIC
permits for the construction and operation of Florence Copper;
* the availability of, and uncertainties relating to, any additional financing
necessary for the continued operation and development of our projects,
including with respect to our ability to obtain any additional construction
financing, if needed, to complete the construction and commencement of
commercial operations at Florence Copper;
* shortages of water supply, critical spare parts, maintenance service and new
equipment and machinery or our ability to manage surplus water on our mine
sites may materially and adversely affect our operations and development
projects;
* our ability to comply with the extensive governmental regulation to which
our business is subject;
* uncertainties related to our ability to obtain necessary title, licenses and
permits for our development projects and project delays due to third party
opposition;
* uncertainties related to Indigenous people’s claims and rights, and
legislation and government policies regarding the same;
* our reliance on the availability of infrastructure necessary for development
and on operations, including on rail transportation and port terminals for
shipping of our copper concentrate production from Gibraltar, and rail
transportation and power for the feasibility of our other British Columbia
development projects;
* uncertainties related to unexpected judicial or regulatory proceedings;
* changes in, and the effects of, the laws, regulations and government
policies affecting our exploration and development activities and mining
operations;
* potential changes to the mineral tenure system in British Columbia, which is
undergoing reform for compliance with the Declaration Act (British Columbia);
* our dependence solely on our 100% interest in Gibraltar for our revenues and
our operating cash flows;
* our ability to extend existing concentrate off-take agreements or enter into
new agreements;
* environmental issues and liabilities associated with mining including
processing and stockpiling ore;
* labour strikes, work stoppages, or other interruptions to, or difficulties
in, the employment of labour in markets in which we operate mines, industrial
accidents, equipment failure or other events or occurrences, including third
party interference that interrupt the production of minerals in our mines;
* environmental hazards and risks associated with climate change, including
the potential for damage to infrastructure and stoppages of operations due to
extreme cold, forest fires, flooding, drought, earthquakes or other natural
events in the vicinity of our operations;
* litigation risks and the inherent uncertainty of litigation;
* our actual costs of reclamation and mine closure may exceed our current
estimates of these liabilities;
* our ability to renegotiate our existing union agreement for Gibraltar when
it expires in May 2027;
* the capital intensive nature of our business both to sustain current mining
operations and to develop any new projects including Florence Copper;
* our ability to develop new mining projects may be adversely impacted by
potential indigenous joint decision-making and consent agreements being
implemented by the Government of British Columbia under the B.C. Declaration
on the Rights of Indigenous Peoples Act;
* our reliance upon key personnel;
* the competitive environment in which we operate;
* the effects of forward selling instruments to protect against fluctuations
in copper prices and other input costs including diesel and acid;
* the risk of changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with critical
accounting assumptions and estimates;
* uncertainties relating to the war in Ukraine, the Israel-Hamas conflict and
other future geopolitical events including social unrest, which could disrupt
financial markets, supply chains, availability of materials and equipment and
execution timelines for any project development;
* recent changes to U.S. trade policies and tariff risks may adversely impact
overall economic conditions, copper markets, supply chains, metal prices and
input costs; and
* other risks detailed from time-to-time in our annual information forms,
annual reports, MD&A, quarterly reports and material change reports filed with
and furnished to securities regulators, and those risks which are discussed
under the heading “Risk Factors”.
For further information on Taseko, investors should review the Company’s
annual Form 40-F filing with the United States Securities and Exchange
Commission www.sec.gov and home jurisdiction filings that are available at
www.sedarplus.ca, including the “Risk Factors” included in our Annual
Information FormRecent news on Taseko Mines
See all newsREG-Taseko Announces Second Quarter Financial and Operational Results
AnnouncementREG-Taseko to Release Second Quarter 2025 Results
AnnouncementREG - Taseko Mines Limited - Director/PDMR Shareholding
AnnouncementREG-Taseko Provides Construction Update on Florence Copper Project
AnnouncementREG - Taseko Mines Limited - Director/PDMR Shareholding
Announcement