REG-Taseko Announces Improved Third Quarter Financial and Operational Results
Wed 22:15
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VANCOUVER, British Columbia, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Taseko Mines
Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the "Company")
reports third quarter 2025 Adjusted EBITDA* of $62 million, a net loss of $28
million ($0.09 per share) and Adjusted net income* of $6 million ($0.02
earnings per share). Revenues for the third quarter were $174 million from the
sale of 26 million pounds of copper and 421 thousand pounds of molybdenum.
Gibraltar copper production significantly improved over the previous two
quarters as mining continued to advance deeper into higher grade ore in the
Connector pit. In the third quarter, Gibraltar produced 27.6 million pounds of
copper, which includes 895 thousand pounds of copper cathode, and 558 thousand
pounds of molybdenum. Mill throughput for the quarter was in line with the
nameplate capacity of 85,000 tons per day, and an average copper grade of
0.22% was processed. Copper recoveries for the third quarter were 77%. Both
grade and recoveries were markedly higher than the previous two quarters and
are expected to increase again in the fourth quarter. Molybdenum grades, which
typically track copper grades, were also higher than the previous quarters
resulting in much improved production.
Total operating (C1) cost * was US$2.87 per pound, lower than the previous
quarter and expected to continue to trend downward in the fourth quarter.
At Florence Copper, the general contractor for the SX/EW plant area achieved
substantial completion in September and began to demobilize construction
crews. The focus has shifted to commissioning of the key processing circuits.
Wellfield operations commenced in mid-October and are now ramping up with
first solutions being injected in early November. Commissioning of the SX/EW
plant will advance in parallel with the initial acidification of the wellfield
and the facility is expected to produce first copper cathode early next year.
Stuart McDonald, President & CEO of Taseko, commented, “Our construction and
operating teams at Florence have achieved a number of significant milestones
in recent months and have successfully completed this major capital project
in line with our execution plan. Initial flow rates in the commercial
wellfield have been in line with expectations at this point of the wellfield
ramp up process, and we’re now very close to first cathode production.
Drilling activity will also restart on the wellfield in the next few weeks.
These additional wells are required to ramp up cathode production in
2026.”
“Gibraltar copper production improved in the third quarter as mining
advanced through the more complex mineralized zones, and copper grades and
recoveries were stronger. The current benches in the Connector pit are
expected to produce higher copper grades again in the fourth quarter and
result in another increase in recoveries and copper production,” continued
Mr. McDonald.
“The US$173 million equity financing that we successfully completed in
October has significantly strengthened our balance sheet. A portion of the
proceeds have now been used to pay off the US$75 million that was drawn on the
corporate revolver. The working capital injection also allows us to restart
wellfield drilling at Florence Copper, earlier than planned, which will
benefit the ramp up in 2026.”
“Despite the recent price volatility, the fundamentals of the copper market
remain healthy. Copper prices are expected to remain strong in 2026 as
accelerating demand from electrification and constrained mine supply continue
to tighten the global market,” concluded Mr. McDonald.
(*Non-GAAP performance measure. See end of news release.)
Third Quarter Review
* Earnings from mining operations before depletion, amortization and
non-recurring items* was $67.3 million, Adjusted EBITDA* was $62.1 million and
cash flow from operations was $36.5 million;
* Net loss was $27.8 million ($0.09 loss per share) and Adjusted net income*
was $5.5 million ($0.02 earnings per share);
* Gibraltar produced 27.6 million pounds of copper, including 0.9 million
pounds of copper cathode, at a total operating (C1) cost* of US$2.87 per pound
of copper produced. Copper head grade was 0.22% and recovery was 77% for the
quarter;
* Gibraltar sold 26.3 million pounds of copper at an average realized copper
price of US$4.49 per pound contributing to revenues of $173.9 million for
Taseko;
* In July 2025, the Company filed an updated technical report for the
Yellowhead copper project highlighting a 25 year mine life with an average
annual copper production of 178 million pounds at a total cash cost (C1) of
US$1.90 per pound, and a net present value of $2.0 billion (8% discount rate,
US$4.25 per pound copper and US$2,400 per ounce gold). The Company also
announced that it had formally commenced the Environmental Assessment process;
* In October 2025, the Company announced receipt of final approvals required
to commence wellfield injection and recovery operations at Florence Copper.
First copper cathode production is expected in early 2026; and
* In October 2025, the Company closed an equity financing (the
“Offering”) with a syndicate of underwriters pursuant to which the Company
issued 42.7 million common shares at a price of US$4.05 per share for gross
proceeds of US$172.8 million. Proceeds from the Offering were used to repay
outstanding debt under the Company’s revolving credit facility and are
available for general corporate purposes, including to support further
wellfield development at Florence Copper and advancement of the Yellowhead
project.
(*Non-GAAP performance measure. See end of news release.)
Highlights
Operating data Three months ended September 30, Nine months ended September 30,
(Gibraltar – 100% basis) 2025 2024 Change 2025 2024 Change
Tons mined (millions) 29.3 23.2 6.1 82.9 64.4 18.5
Tons milled (millions) 7.8 7.6 0.2 23.4 21.0 2.4
Production (million pounds Cu) 27.6 27.1 0.5 67.4 77.0 (9.6 )
Sales (million pounds Cu) 26.3 26.3 – 67.1 80.6 (13.5 )
Financial data (Cdn$ in thousands, except per share amounts) Three months ended September 30, Nine months ended September 30,
2025 2024 Change 2025 2024 (1) Change
Revenues 173,906 155,617 18,289 429,137 440,294 (11,157 )
Cash flows from operations 36,478 65,038 (28,560 ) 118,324 159,323 (40,999 )
Net income (loss) (27,838 ) (180 ) (27,658 ) (34,530 ) 7,763 (42,293 )
1Per share – Basic (“EPS”) (0.09 ) – (0.09 ) (0.11 ) 0.03 (0.14 )
1Earnings from mining operations before depletion, amortization and non-recurring items* 67,326 54,516 12,810 130,825 184,241 (53,416 )
1Adjusted EBITDA* 62,137 47,689 14,448 113,960 168,389 (54,429 )
1Adjusted net income (loss)* 5,584 8,228 (2,644 ) (14,384 ) 46,459 (60,843 )
Per share – Basic (“Adjusted EPS”)* 0.02 0.03 (0.01 ) (0.05 ) 0.16 (0.21 )
(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. and Furukawa Co., Ltd. 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) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024
Tons mined (millions) 29.3 30.4 23.2 24.0 23.2
Tons milled (millions) 7.8 7.7 7.9 8.3 7.6
Strip ratio 1.5 2.3 4.6 1.9 1.2
Site operating cost per ton milled* $ 14.98 $ 11.23 $ 8.73 $ 12.18 $ 14.23
Copper concentrate
Head grade (%) 0.22 0.20 0.19 0.22 0.23
Recovery (%) 77.2 63.2 67.5 78.2 78.9
Production (million pounds Cu) 26.7 19.4 20.0 28.6 27.1
Sales (million pounds Cu) 25.4 19.0 21.8 27.4 26.3
Inventory (million pounds Cu) 4.0 2.7 2.3 4.1 2.9
Copper cathode
Production (thousand pounds Cu) 895 395 – – –
Sales (thousand pounds Cu) 905 – – – –
Molybdenum concentrate
Production (thousand pounds Mo) 558 180 336 578 421
Sales (thousand pounds Mo) 421 178 364 607 348
Per unit data (US$ per Cu pound produced) (1)
Site operating cost* 3.09 $ 3.15 $ 2.41 $ 2.52 $ 2.91
By-product credit* (0.39 ) (0.19 ) (0.33 ) (0.42 ) (0.25 )
Site operating cost, net of by-product credit* 2.70 2.96 2.08 2.10 2.66
Off-property cost* 0.17 0.18 0.18 0.32 0.26
Total operating (C1) cost* $ 2.87 $ 3.14 $ 2.26 $ 2.42 $ 2.92
(1 Copper pounds produced include both copper in concentrate and copper cathode.)
Operations Analysis
Third Quarter Review
Mining is advancing deeper into the Connector pit and is beginning to benefit
from improved copper grades and ore quality. A total of 29.3 million tons were
mined in the third quarter, comparable to the previous quarter.
(*Non-GAAP performance measure. See end of news release.)
Operations Analysis - Continued
Gibraltar copper production increased to 27.6 million pounds, including 0.9
million pounds of copper cathode. Copper head grades averaged 0.22% and while
behind plan was significantly improved over the first two quarters of 2025.
Copper head grades are expected to further improve in the fourth quarter as
mining progresses deeper into the Connector pit. Copper recoveries averaged
77% for the quarter and steadily improved as mining advanced beyond the
oxidized and supergene zones encountered in the initial phases of Connector
pit.
Mill throughput was 7.8 million tons in the third quarter, in line with
nameplate milling capacity of 85,000 tons per day.
Total site costs* were $123.8 million (including capitalized stripping of $6.1
million) for the third quarter and was higher than the prior year comparative
quarter reflecting higher mining rates and the restart of the SX/EW plant.
Molybdenum production was 558 thousand pounds for the third quarter,
representing a 33% increase compared to the prior year comparative quarter,
primarily due to increased molybdenum grades in the Connector pit ore. At an
average molybdenum price of US$24.37 per pound for the quarter, molybdenum
contributed to a by-product credit of US$0.39 per pound of copper produced.
Off-property costs of US$0.17 per pound of copper produced was comparable with
the previous quarter and was lower than the prior year comparative quarter
reflecting Gibraltar’s favorable 2025 offtake agreements with average
treatment and refining charges (“TCRC”) of $nil for the year.
Total operating (C1) costs* were US$2.87 per pound of copper produced for the
third quarter compared to US$2.92 per pound of copper produced for the prior
comparative quarter. The decrease in total operating (C1) costs was primarily
attributable to higher molybdenum by-product credits, higher capitalized
stripping costs, slightly higher copper production, and lower off-property
costs partially offset by higher mining rates as outlined in the bridge graph
below:
A graph accompanying this announcement is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/7f6bed85-f943-4050-badc-0a334ed6c5eb
(*Non-GAAP performance measure. See end of news release.)
Gibraltar Outlook
Mining activity continues to advance deeper into the Connector pit, which will
be the primary source of mill feed for the remainder of 2025 and the years
ahead. Increases in copper head grades and recoveries are expected in the
fourth quarter. Copper production for 2025 is expected to be 100 to 105
million pounds.
Molybdenum production is also expected to further improve reflecting the
higher molybdenum grades and recoveries expected from the Connector pit ore.
The Company has offtake agreements covering substantially all of Gibraltar’s
copper concentrate production for 2025 and 2026, which contain significantly
lower and in certain cases negative (premium) TCRC rates reflecting the tight
copper smelting market. Based on the contract terms, the Company expects
average TCRCs to be to around $nil for 2025 and 2026.
The Company has a prudent hedging program in place to protect a minimum copper
price and Gibraltar cash flow during the commissioning period and ramp up of
commercial operations at Florence Copper. Currently, the Company has copper
collar contracts in place that secure a minimum copper price of US$4.00 per
pound with a maximum copper price of US$5.40 per pound per pound for 27
million pounds of copper production for the remainder of 2025 and 54 million
pounds of copper production for the first half of 2026 (refer to “Financial
Condition Review—Hedging Strategy” for details).
Florence Copper
The operating team recently commenced wellfield injection and recovery
operations, which marks the start up of the commercial production facility at
Florence Copper.
In the solvent extraction and electrowinning (“SX/EW”) plant area, the
general contractor achieved substantial completion in the third quarter and
began to demobilize construction crews. Contractors are wrapping up final
construction activities and systematically handing over areas of the SX/EW
plant to the operating team for commissioning. Commissioning of the SX/EW
plant is scheduled to run in parallel with the acidification of the wellfield
and first copper cathode production is expected in about three months.
Florence Copper capital spend (US$ in thousands) Three months ended September 30, 2025 Nine months ended September 30, 2025
Commercial facility construction costs 27,308 111,628
Site and PTF operations 8,057 22,402
Total Florence Copper capital spend 35,365 134,030
Florence Copper commercial facility construction costs were US$27.3 million
for the third quarter and US$266.6 million has been incurred on the
construction as of September 30, 2025.
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
In July, the Company published a new report titled “Technical Report Update
on the Yellowhead Copper Project, British Columbia, Canada” (the “2025
Technical Report”) under the supervision of Richard Weymark, P. Eng., MBA,
Vice President, Engineering for Taseko and a Qualified Person as defined by NI
43 101.
Based on the 2025 Technical Report, 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 2025 Technical Report was prepared using a copper
price of US$4.25 per pound, a gold price of US$2,400 per ounce, and a silver
price of US$28.00 per ounce.
Project highlights based on the 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.
In June 2025, 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 will continue to engage 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.
Long-term Growth Strategy - Continued
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.
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.
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.
Conference Call and Webcast
The Company will host a telephone conference call and live webcast on Thursday, November 13, 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 9308157.The webcast may be accessed at tasekomines.com/investors/events
(https://www.tasekomines.com/investors/events)and will be archived until November 13, 2026 for later playback.
For further information on Taseko, see the Company’s website at
tasekomines.com or contact:
* Investor enquiries Brian Bergot, Vice President, Investor Relations –
778-373-4554
Stuart McDonald
President and CEO
Non-GAAP Performance Measures
This MD&A includes certain non-GAAP performance measures that do not have a
standardized meaning prescribed by IFRS Accounting Standards. 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
Accounting Standards 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 Accounting Standards 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 treatment costs), silver and gold
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) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024
Cost of sales 134,664 120,592 122,783 134,940 124,883
Less:
Depletion and amortization (27,876 ) (25,210 ) (22,425 ) (24,641 ) (20,466 )
Changes in inventories of finished goods 1,425 2,123 (2,710 ) 4,064 2,938
Changes in inventories of ore stockpiles 16,685 (5,718 ) (22,747 ) (3,698 ) 9,089
Transportation costs (7,247 ) (5,720 ) (5,984 ) (10,170 ) (8,682 )
Site operating costs 117,651 86,067 68,917 100,495 107,712
Less by-product credits:
Molybdenum, net of treatment costs (13,903 ) (4,814 ) (8,774 ) (16,507 ) (8,962 )
Silver, excluding amortization of deferred revenue (295 ) (58 ) (131 ) (139 ) (241 )
Gold, net of refining costs (761 ) (350 ) (389 ) – –
Site operating costs, net of by-product credits 102,692 80,845 59,623 83,849 98,509
Total pounds of copper produced (thousand pounds) 27,593 19,813 19,959 28,595 27,101
Total costs per pound produced 3.72 4.08 2.99 2.94 3.63
Average exchange rate for the period (Cdn$/US$) 1.38 1.38 1.44 1.40 1.36
Site operating costs, net of by-product credits (US$ per pound) $ 2.70 $ 2.96 $ 2.08 $ 2.10 $ 2.66
Site operating costs, net of by-product credits 102,692 80,845 59,623 83,849 98,509
Add off-property costs:
Treatment and refining (premiums) costs (512 ) (837 ) (510 ) 2,435 816
Transportation costs 7,247 5,720 5,984 10,170 8,682
Total operating costs 109,427 85,728 65,097 96,454 108,007
Total operating costs (C1) (US$ per pound) $ 2.87 $ 3.14 $ 2.26 $ 2.42 $ 2.92
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) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024
Site operating costs (included in cost of sales) 117,651 86,067 68,917 100,495 107,712
Capitalized stripping costs 6,106 30,765 38,082 1,981 3,631
Total site costs 123,757 116,832 106,999 102,476 111,343
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 Accounting Standards:
* Unrealized foreign currency gains and losses;
* Unrealized gains and losses on derivatives;
* 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 inventories;
* Realized gains on processing of ore stockpiles;
* Accretion on Florence royalty obligation;
* Accretion on Cariboo consideration payable;
* Tax effect of sale of non-controlling interest in New Prosperity; and
* Non-recurring other expenses for Cariboo acquisition.
Management believes that 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) Q3 2025 Q2 2025 Q1 2025 Q4 2024
Net (loss) income (27,838 ) 21,868 (28,560 ) (21,207 )
Unrealized foreign exchange loss (gain) 14,287 (40,335 ) 2,074 40,462
Unrealized loss (gain) on derivatives and fair value adjustments 14,977 9,489 23,536 (25,514 )
Accretion on Cariboo consideration payable 4,041 4,484 664 4,543
Accretion on Florence royalty obligation 6,991 6,201 2,571 3,682
Other operating costs – – – 4,132
Realized gain on processing of ore stockpiles (1) – – – 1,905
Tax effect of sale of non-controlling interest in New Prosperity – (9,285 ) – –
Estimated tax effect of adjustments (6,874 ) (5,447 ) (7,228 ) 2,465
Adjusted net (loss) income 5,584 (13,025 ) (6,943 ) 10,468
Adjusted EPS $ 0.02 $ (0.04 ) $ (0.02 ) $ 0.03
(1 Realized gain on processing of ore stockpiles relates to ore stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar that were subsequently processed. The realized portion of the gain recorded for GAAP purposes has been included in Adjusted net income (loss) in the period the inventories were processed.)
(Cdn$ in thousands) Q3 2024 Q2 2024 Q1 2024 Q4 2023
Net (loss) income (180 ) (10,953 ) 18,896 38,076
Unrealized foreign exchange loss (gain) (7,259 ) 5,408 13,688 (14,541 )
Unrealized derivative loss (gain) and fair value adjustments 1,821 10,033 3,519 1,636
Other operating costs 4,098 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 (1) – – (14,982 ) –
Realized gain on sale of inventories (2) – 3,768 13,354 –
Realized gain on processing of ore stockpiles (3) 3,266 4,056 – –
Accretion on Florence royalty obligation 3,703 2,132 3,416 –
Accretion on Cariboo consideration payable 9,423 8,399 1,555 –
Non-recurring other expenses for Cariboo acquisition – 394 138 (916 )
Estimated tax effect of adjustments (6,644 ) (15,644 ) 15,570 (194 )
Adjusted net income 8,228 30,503 7,728 24,061
Adjusted EPS $ 0.03 $ 0.10 $ 0.03 $ 0.08
(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% effective interest in Gibraltar at March 25, 2024.) (2 Realized gain on sale of inventories relates to copper concentrate inventories that were written-up to fair value as part of the acquisition of control of Gibraltar that were subsequently sold. The realized portion of the gain recorded for GAAP purposes has been included in Adjusted net income in the period the
inventories were sold.) (3 Realized gain on processing of ore stockpiles relates to ore stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar that were subsequently processed. The realized portion of the gain recorded for GAAP purposes has been included in Adjusted net income (loss) in the period the inventories were 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 gains and losses on derivative;
* 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 inventories;
* Realized gains on processing of ore stockpiles; and
* Non-recurring other expenses for Cariboo acquisition.
(Cdn$ in thousands) Q3 2025 Q2 2025 Q1 2025 Q4 2024
Net income (loss) (27,838 ) 21,868 (28,560 ) (21,207 )
Depletion and amortization 27,974 25,210 22,425 24,641
Finance and accretion expenses 24,888 23,943 18,877 21,473
Finance income (1,368 ) (124 ) (1,330 ) (1,674 )
Income tax expense (recovery) 2,918 (27,439 ) (7,980 ) 11,707
Unrealized foreign exchange loss (gain) 14,287 (40,335 ) 2,074 40,462
Unrealized (gain) loss on derivatives and fair value adjustments 14,977 9,489 23,536 (25,514 )
Share-based compensation expense (recovery) 6,299 4,820 5,349 (323 )
Other operating costs – – – 4,132
Realized gains on processing of ore stockpiles (1) – – – 1,905
Adjusted EBITDA 62,137 17,432 34,391 55,602
(1 Realized gain on processing of ore stockpiles relates to ore stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar that were subsequently processed. The realized portion of the gain recorded for GAAP purposes has been included in Adjusted EBITDA in the period the inventories were processed.)
Non-GAAP Performance Measures - Continued
(Cdn$ in thousands) Q3 2024 Q2 2024 Q1 2024 Q4 2023
Net (loss) income (180 ) (10,953 ) 18,896 38,076
Depletion and amortization 20,466 13,721 15,024 13,326
Finance and accretion expenses 25,685 21,271 19,849 12,804
Finance income (1,504 ) (911 ) (1,086 ) (972 )
Income tax expense (recovery) (200 ) (3,247 ) 23,282 17,205
Unrealized foreign exchange loss (gain) (7,259 ) 5,408 13,688 (14,541 )
Unrealized (gain) loss on derivatives and fair value adjustments 1,821 10,033 3,519 1,636
Share-based compensation expense (recovery) 1,496 2,585 5,667 1,573
Other operating costs 4,098 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 gains on sale of finished goods (2) – 3,768 13,354 –
Realized gains on processing of ore stockpiles (3) 3,266 4,056 – –
Non-recurring other expenses for Cariboo acquisition – 394 138 –
Adjusted EBITDA 47,689 70,777 49,923 69,107
(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% effective interest in Gibraltar at March 25, 2024.) (2 Realized gain on sale of finished goods relates to copper concentrate inventories that were written-up to fair value as part of the acquisition of control of Gibraltar that were subsequently sold. The realized portion of the gain recorded for GAAP purposes has been included in Adjusted EBITDA in the period the
inventories were sold.) (3 Realized gain on processing of ore stockpiles relates to ore stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar that were subsequently processed. The realized portion of the gain recorded for GAAP purposes has been included in Adjusted net income (loss) in the period the inventories were processed.)
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.
Non-GAAP Performance Measures - Continued
Three months ended September 30, Nine months ended September 30,
(Cdn$ in thousands) 2025 2024 2025 2024
Earnings from mining operations 39,242 26,686 55,106 96,053
Add:
Depletion and amortization 27,876 20,466 75,511 49,211
Realized gain on sale of inventory – – – 17,122
Realized gain on processing of ore stockpiles 208 3,266 208 7,322
Other operating costs – 4,098 – 14,533
Earnings from mining operations before depletion, amortization and non-recurring items 67,326 54,516 130,825 184,241
(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 inventories were sold.) (2 Realized gain on processing of ore stockpiles relates to ore 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. The realized portion of these gains 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 assist
in understanding the Company’s site operations on a tons milled basis.
(Cdn$ in thousands) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024
Site operating costs (included in cost of sales) 117,651 86,067 68,917 100,495 107,712
Tons milled (thousands) 7,852 7,663 7,898 8,250 7,572
Site operating costs per ton milled $ 14.98 $ 11.23 $ 8.73 $ 12.18 $ 14.23
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.
No regulatory authority has approved or disapproved of the information
contained in this news release
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
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