REG-Taseko Reports First Quarter 2025 Earnings
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This release should be read with the Company’s Financial Statements and Management Discussion & Analysis ("MD&A"), available at www.tasekomines.com and filed on www.sedarplus.com . Except where otherwise noted, all currency amounts are stated in Canadian dollars. Taseko owns 100% of the Gibraltar Mine, which is located north of the City of Williams Lake in south-central British Columbia.
VANCOUVER, British Columbia, May 01, 2025 (GLOBE NEWSWIRE) -- Taseko Mines
Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the "Company")
reports first quarter 2025 Adjusted EBITDA* of $34 million and Earnings from
mining operations before depletion and amortization and non-recurring items*
of $39 million. Revenues for the first quarter were $139 million from the sale
of 22 million pounds of copper and 364 thousand pounds of molybdenum. The
Company recorded a Net loss of $29 million ($0.09 loss per share) and an
Adjusted net loss* of $7 million ($0.02 loss per share).
Gibraltar produced 20 million pounds of copper and 336 thousand pounds of
molybdenum in the first quarter at Total operating costs (C1) of US$2.26 per
pound of copper produced. Mill throughput averaged 87,800 tons per day, which
was above design capacity. Copper grades in the quarter averaged 0.19% and
copper recoveries were 68%.
At Florence Copper, construction remains on schedule and as of the end of
March the overall project completion was at 78%. Construction of the SX/EW
plant, surface infrastructure and the wellfield drilling are tracking to plan.
In the wellfield, drilling is nearly complete and the last two wells will be
constructed in May. The electrowinning crane has been installed in the
plant, allowing the building structure to be completed. Construction of
surface infrastructure is also advancing on schedule, including work on the
pipe corridor, electrical substation, tank farm, and office and dry buildings.
Stuart McDonald, President and CEO of Taseko, commented, “Through the first
15 months of construction at Florence Copper, all critical aspects of the
project remain on schedule and our operating plans are well developed. In the
coming months, site construction activities will begin to slow down and in the
fall we expect to commence wellfield operations as we advance towards first
copper cathode production later in the year. Our project team remains focussed
on continued execution of the remaining construction activities, and our
growing operations team is planning for the production ramp up in 2026.”
“At our Gibraltar mine, mill throughput exceeded design capacity in the
first quarter and head grades were in line with plan. But copper production
in the quarter was impacted by lower than expected metallurgical recoveries
from oxidized ore. Also, challenging ground conditions at the top of the
current Connector pit pushback have led to lower mining productivities in
recent months which will delay the release of higher-grade ore from the second
quarter to the third quarter. As a result, copper production for 2025 is
expected to be about 10 million pounds (~8%) lower than our previous
guidance. Significantly higher grades and recoveries are expected in the
second half of this year and into 2026”, continued Mr. McDonald.
Mr. McDonald concluded, “With less than nine months until the startup of
Florence Copper, America’s next copper mine, Taseko is approaching a period
of significant production and cashflow growth. We are uniquely positioned as
the North American copper producer with both near-term production growth and a
longer-term growth pipeline.”
*Non-GAAP performance measure. See end of news release.
First Quarter Review
* Earnings from mining operations before depletion, amortization and
non-recurring items* was $38.8 million, Adjusted EBITDA* was $34.4 million and
cash flows from operations was $55.9 million;
* GAAP net loss was $28.6 million ($0.09 loss per share) and Adjusted net
loss* was $6.9 million ($0.02 loss per share);
* Gibraltar produced 20.0 million pounds of copper at a total operating cost
(C1)* of US$2.26 per pound of copper produced. Copper head grade was 0.19%
and recovery was 68% for the quarter reflecting the milling of lower grade
stockpiled material which contained more oxidized material;
* Gibraltar sold 21.8 million pounds of copper and 364 thousand pounds of
molybdenum. The average realized copper price of US$4.24 per pound and
Canadian dollar to US dollar exchange rate of 1.43, contributed to revenues of
$139.1 million for the period;
* Construction of the Florence Copper commercial production facility is
advancing on schedule and on budget, and was approximately 78% complete at
March 31, 2025. A total of 29 production wells were constructed in the
quarter bringing the total number of completed wells to 80 of the 90 planned
to be drilled during the construction phase. Wellfield drilling activities
are ramping down in April and will be completed on schedule in May. The
solvent extraction and electrowinning areas continue to advance with a focus
on pipe and settler welding and electrical installation. First copper
cathode production is expected in the fourth quarter of 2025;
* The Company completed share issuances under its at-the-market (“ATM”)
equity offering prospectus, issuing 10.6 million common shares for gross
proceeds of $31.0 million (US$21.5 million) in the first quarter;
* The Company has copper collar contracts to secure a minimum copper price of
US$4.00 per pound for 81 million pounds of copper for the remainder of 2025;
and
* At March 31, 2025, the Company had a cash balance of $121 million and
available liquidity of $279 million including its undrawn corporate revolving
credit facility.
*Non-GAAP performance measure. See end of news release.
Highlights
Operating data Three months ended March 31,
(Gibraltar – 100% basis) 2025 2024 Change
Tons mined (millions) 23.2 22.8 0.4
Tons milled (millions) 7.9 7.7 0.2
Production (million pounds Cu) 20.0 29.7 (9.7 )
Sales (million pounds Cu) 21.8 31.7 (9.9 )
Financial data Three months ended March 31,
($ in thousands, except for per share amounts) 2025 2024 Change
Revenues 139,149 146,947 (7,798 )
Cash flows from operations 55,892 59,574 (3,682 )
Net (loss) income (28,560 ) 18,896 (47,456 )
Per share – basic (“EPS”) $ (0.09 ) $ 0.07 $ (0.16 )
Earnings from mining operations before depletion, amortization and non-recurring items* 38,791 52,797 (14,006 )
Adjusted EBITDA* 34,391 49,923 (15,532 )
Adjusted net (loss) income* (6,943 ) 7,728 (14,671 )
Per share – basic (“Adjusted EPS”)* $ (0.02 ) $ 0.03 $ (0.05 )
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”) increasing 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 for the period 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 12.
*Non-GAAP performance measure. See end of news release.
Review of Operations
Gibraltar mine
Operating data (100% basis) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
Tons mined (millions) 23.2 24.0 23.2 18.4 22.8
Tons milled (millions) 7.9 8.3 7.6 5.7 7.7
Strip ratio 4.6 1.9 1.2 1.6 1.7
Site operating cost per ton milled* $ 8.73 $ 12.18 $ 14.23 $ 13.93 $ 11.73
Copper concentrate
Head grade (%) 0.19 0.22 0.23 0.23 0.24
Copper recovery (%) 67.5 78.2 78.9 77.7 79.0
Production (million pounds Cu) 20.0 28.6 27.1 20.2 29.7
Sales (million pounds Cu) 21.8 27.4 26.3 22.6 31.7
Inventory (million pounds Cu) 2.3 4.1 2.9 2.3 4.9
Molybdenum concentrate
Production (thousand pounds Mo) 336 578 421 185 247
Sales (thousand pounds Mo) 364 607 348 221 258
Per unit data (US$ per Cu pound produced)
Site operating cost* $ 2.41 $ 2.52 $ 2.91 $ 2.88 $ 2.21
By-product credit* (0.33 ) (0.42 ) (0.25 ) (0.26 ) (0.17 )
Site operating cost, net of by-product credit* 2.08 2.10 2.66 2.62 2.04
Off-property cost* 0.18 0.32 0.26 0.37 0.42
Total operating cost (C1)* $ 2.26 $ 2.42 $ 2.92 $ 2.99 $ 2.46
Operations Analysis
In the first quarter, mining activity at Gibraltar was focused on waste
stripping for a new pushback in the Connector pit, which resulted in a higher
than normal strip ratio and lower mined ore in the period. Lower grade
stockpiled ore was the primary source of mill feed, resulting in lower copper
production compared to recent quarters.
Gibraltar produced 20.0 million pounds of copper in the first quarter and
copper head grade was 0.19%, well below average reserve grade. Copper
recovery was 68% and was notably impacted by oxidation in the stockpiled ore
which mainly originated from the upper benches of the Connector pit. Mill
throughput was 7.9 million tons in the quarter, above nameplate capacity due
to the lower work index ore in the Connector pit.
A total of 23.2 million tons were mined in the first quarter comparable to
recent quarters. The average strip ratio was 4.6, as a total of 4.2 million
tons of ore were mined. This includes 2.2 million tons of oxide ore that was
added to the heap leach pads as plans for restart of the solvent extraction
and electrowinning (“SX/EW”) plant continue in Q2 2025.
*Non-GAAP performance measure. See end of news release.
Operations Analysis - Continued
Capitalized stripping totaling $38.1 million was higher in the first quarter
attributed to greater mining of waste tons above the average strip ratio for
the Connector pit. Total site costs* including capitalized stripping was
$107.0 million in the quarter consistent with the comparative prior year
quarter. Decreased consumption of mining inputs such as diesel and
explosives due to processing of stockpile material as well as lower diesel
prices were offset by higher milling costs.
Molybdenum production was 336 thousand pounds in the first quarter compared to
247 thousand pounds in the comparative prior year quarter. Higher molybdenum
grades, on average, are expected in Connector pit ore. Grades will improve
as stockpile ore feed decreases. At an average molybdenum price of US$20.53
per pound for the quarter, molybdenum contributed a meaningful by-product
credit of US$0.33 per pound of copper produced.
Off-property costs were US$0.18 per pound of copper produced. These lower
costs reflect Gibraltar’s 2025 offtake agreements with very favorable
treatment and refining charges (“TCRC”). On a blended basis, TCRCs are
effectively nil for this year.
Total operating cost (C1)* was US$2.26 per pound of copper produced in the
first quarter compared to US$2.46 in the comparative prior year quarter.
Higher capitalized stripping costs, improved molybdenum by-product credits,
and lower off property costs all contributed to driving down total operating
cost (C1), partially offset by the effect of lower copper production as shown
in the bridge graph below:
https://www.globenewswire.com/NewsRoom/AttachmentNg/9f3402ff-ad47-4f4b-9681-3c1f27945454
Gibraltar Outlook
Mining activities are now focused in the Connector pit, which will be the
source of mill feed in 2025 and the years ahead. Copper production in the
first quarter was approximately 10% below expectations, due to low recoveries
from oxidized ore. In addition, mining rates in the upper benches of
Connector pit have been behind plan due to challenging ground conditions
resulting in lower equipment productivities. As a result, access to higher
quality ore has been delayed from the second quarter to the third quarter, and
annual copper production for 2025 is expected to be approximately 10 million
pounds below the previous guidance of 120 to 130 million pounds. Significant
increases in head grades and recoveries are expected in the second half of
2025 and continuing into 2026.
*Non-GAAP performance measure. See end of news release.
Gibraltar Outlook - Continued
Increased mill availability and higher throughput is also expected this year,
as major maintenance projects were completed in both mills last year.
Refurbishment of the Gibraltar SX/EW plant, which has been idle since 2015, is
nearing completion, with first cathode production expected in the second
quarter, supplementing Gibraltar copper concentrate production.
Molybdenum production is forecast to increase in 2025 as molybdenum grades are
expected to be notably higher as more Connector pit ore is processed, also
weighted to the second half of the year.
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 tightening copper smelting
market. In 2024, TCRCs accounted for approximately US$0.09 per pound of
off-property costs, and, with the new offtake agreements, the Company expects
average TCRCs to reduce to nil in 2025 and 2026.
Potential US import tariffs are not expected to have a material impact on
sales at Gibraltar as the mine produces copper and molybdenum concentrates
that are sold to international metal traders and delivered to Asian markets.
Offtake agreements are in place for substantially all of Gibraltar’s copper
concentrate production in 2025 and 2026, and no changes to these sales
channels are expected during this period.
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$4.00 per pound for 81 million pounds of
copper production for the remainder of 2025 (refer to “Financial Condition
Review—Hedging Strategy” for details).
Florence Copper
The Company has all key permits in place for the commercial production
facility at Florence and construction of the Florence Copper commercial
production facility continues to advance on schedule. Approximately 670,000
project hours have been worked with no reportable injuries or environmental
incidents. The Company has a fixed-price contract with the general
contractor for construction of the SX/EW plant and associated surface
infrastructure.
A total of 80 production wells out of a total of 90 new wells to be drilled
during the construction phase have been completed as of March 31, 2025.
Process ponds and surface water runoff pond construction are complete, and
installation of high-density polyethylene piping in the main pipeline corridor
continued. Mechanical and piping installations throughout the SX/EW plant
and electrical work continue to advance. Assembly of the modular office and
dry buildings were also completed, and work on the exterior finishing has
started.
Site activities are focused on hiring additional personnel and other
initiatives to support operational readiness and the ramp up of production.
Florence Copper - Continued
Florence Copper capital spend (US$ in thousands) Three months ended March 31, 2025
Commercial facility construction costs 51,364
Site and PTF operations 6,069
Total Florence Copper capital spend 57,433
Florence Copper commercial facility construction costs were US$51.4 million in
the first quarter and, since the beginning of construction, US$206.3 million
has been incurred on the Florence Copper commercial facility as of March 31,
2025.
In January 2025, the Company received its final US$10 million instalment from
its US$50 million copper stream with Mitsui & Co. (U.S.A.) Inc.
(“Mitsui”). The remaining Florence Copper commercial production facility
construction costs are expected to be funded from the Company’s available
liquidity and cash flows from Gibraltar.
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).
Based on the Florence 2023 Technical Report, the estimated construction costs
for the Florence Copper commercial production facility were US$232 million and
management expects that total construction costs will be within a range of 10%
to 15% higher than this estimate. Florence Copper remains on track for first
copper cathode production in Q4 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
The Yellowhead copper project (“Yellowhead”) is expected to produce 4.4
billion pounds of copper over a 25-year mine life. During the first 5 years
of operation, Yellowhead is expected to produce an average of 200 million
pounds of copper per year. Yellowhead also contains valuable precious metal
by-products with 440,000 ounces of gold production and 19 million ounces of
silver production over the life of mine. The Yellowhead project is subject of
technical report published in January 2020.
Taseko plans to publish an updated technical report on Yellowhead in 2025
using updated long-term metal price assumptions, updated project costing, and
incorporating the new Canadian tax credits available for copper mine
development.
The Company is ready to enter the environmental assessment (“EA”) process
and plans to submit an Initial Project Description to formally commence the EA
process with regulators in Q2 2025. The Company is focusing discussions with
regulators on developing a streamlined permitting process. Taseko also
opened a Yellowhead project office in 2024 to support ongoing engagement with
local communities including First Nations.
New Prosperity copper-gold project
In late 2019, the Tŝilhqot’in Nation, as represented by the Tŝilhqot’in
National Government, and Taseko entered into a confidential dialogue, with the
involvement of the Province of BC, seeking a long-term resolution to the
conflict regarding Taseko’s proposed copper-gold mine previously known as
New Prosperity, acknowledging Taseko’s commercial interests and the
Tŝilhqot’in Nation’s opposition to the project.
This dialogue has been supported by the parties’ agreement, beginning
December 2019, to a series of standstill agreements on certain outstanding
litigation and regulatory matters relating to Taseko’s tenures and the area
in the vicinity of Teẑtan Biny (Fish Lake).
This dialogue process has made meaningful progress in recent months and is
close to completion. The Tŝilhqot’in Nation and Taseko acknowledge the
constructive nature of discussions, and the opportunity to conclude a
long-term and mutually acceptable resolution of the conflict that also makes
an important contribution to the goals of reconciliation in Canada.
Conference Call and Webcast
The Company will host a telephone conference call and live webcast on Friday, May 2, 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.
Participants can join by conference call dial-in or webcast:
Conference Call Dial-In
• Participants can dial in to the conference call; however, pre-registration is required
• To register, visit https://bit.ly/Dialin-Q12025
• Once registered, an email will be sent, including dial-in details and a unique access code required to join the live call
• Please ensure you have registered at least 15 minutes prior to the conference call start time
Webcast
•A live webcast of the conference call can be accessed at Taseko Mines | Events (https://www.tasekomines.com/investors/events/)
• The webcast will be archived for later playback until June 2, 2025 at Taseko Mines | Events (https://www.tasekomines.com/investors/events/)
For further information on Taseko, please see the Company's website at
www.tasekomines.com or contact:
Brian Bergot, Vice President, Investor Relations – 778-373-4554, toll free
1-800-667-2114
Stuart McDonald
President & CEO
No regulatory authority has approved or disapproved of the information 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) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
Cost of sales 122,783 134,940 124,883 108,637 122,528
Less:
Depletion and amortization (22,425 ) (24,641 ) (20,466 ) (13,721 ) (15,024 )
Net change in inventories of finished goods (2,710 ) 4,064 2,938 (10,462 ) (20,392 )
Net change in inventories of ore stockpiles (22,747 ) (3,698 ) 9,089 1,758 2,719
Transportation costs (5,984 ) (10,170 ) (8,682 ) (6,408 ) (10,153 )
Site operating cost 68,917 100,495 107,712 79,804 79,678
Less by-product credits:
Molybdenum, net of treatment costs (8,774 ) (16,507 ) (8,962 ) (7,071 ) (6,112 )
Silver, excluding amortization of deferred revenue (131 ) (139 ) (241 ) (144 ) (137 )
Gold, net of refining costs (389 ) – – – –
Site operating cost, net of by-product credit 59,623 83,849 98,509 72,589 73,429
Total pounds of copper produced (thousand pounds) 19,959 28,595 27,101 20,225 26,694
Total costs per pound produced 2.99 2.94 3.63 3.59 2.75
Average exchange rate for the period (Cdn$ / US$) 1.44 1.40 1.36 1.37 1.35
Site operating cost, net of by-product credits (US$ per pound) $ 2.08 $ 2.10 $ 2.66 $ 2.62 $ 2.04
Site operating cost, net of by-product credit 59,623 83,849 98,509 72,589 73,429
Add off-property costs:
Treatment and refining costs (510 ) 2,435 816 3,941 4,816
Transportation costs 5,984 10,170 8,682 6,408 10,153
Total operating cost 65,097 96,454 108,007 82,938 88,398
Total operating cost (C1) (US$ per pound) $ 2.26 $ 2.42 $ 2.92 $ 2.99 $ 2.46
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) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 (1)
Site operating costs 68,917 100,495 107,712 79,804 79,678
Capitalized stripping costs 38,082 1,981 3,631 10,732 16,152
Total site costs – Taseko’s share 106,999 102,476 111,343 90,536 95,830
Total site costs – 100% basis 106,999 102,476 111,343 90,536 109,520
1. Q1 2024 results reflect the Company’s 87.5% effective interest in
Gibraltar for the period from January 1 to March 24, 2024 and 100% effective
interest for the period from March 25 to March 31, 2024.
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 and fair value adjustments;
* 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 fair value that was sold or processed;
* Accretion on Florence royalty obligations;
* Accretion on Cariboo consideration payable;
* Non-recurring other expenses for Cariboo adjustment; and
* Finance and other non-recurring costs of Cariboo acquisition.
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.
Non-GAAP Performance Measures - Continued
Adjusted earnings per share (“Adjusted EPS”) is Adjusted net income (loss)
attributable to common shareholders of the Company divided by the weighted
average number of common shares outstanding for the period.
(Cdn$ in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024
Net loss (28,560 ) (21,207 ) (180 ) (10,953 )
Unrealized foreign exchange loss (gain) 2,074 40,462 (7,259 ) 5,408
Unrealized derivative loss (gain) and fair value adjustment 23,536 (25,514 ) 1,821 10,033
Other operating costs (1) – 4,132 4,098 10,435
Call premium on settlement of debt – – – 9,571
Loss on settlement of debt, net of capitalized interest – – – 2,904
Realized gain on sale of inventory (2) – – – 3,768
Inventory write-ups to fair value that was sold or processed (3) – 1,905 3,266 4,056
Accretion on Florence royalty obligation 2,571 3,682 3,703 2,132
Accretion on Cariboo consideration payable 664 4,543 9,423 8,399
Non-recurring other expenses for Cariboo adjustment – – – 394
Estimated tax effect of adjustments (7,228 ) 2,465 (6,644 ) (15,644 )
Adjusted net (loss) income (6,943 ) 10,468 8,228 30,503
Adjusted EPS $ (0.02 ) $ 0.03 $ 0.03 $ 0.10
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. 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 (loss) income in
the period the inventory was sold.
3. 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) Q1 2024 Q4 2023 Q3 2023 Q2 2023
Net income 18,896 38,076 871 9,991
Unrealized foreign exchange loss (gain) 13,688 (14,541 ) 14,582 (10,966 )
Unrealized derivative loss (gain) and fair value adjustment 3,519 1,636 4,518 (6,470 )
Gain on Cariboo acquisition (47,426 ) – – –
Gain on acquisition of control of Gibraltar (1) (14,982 ) – – –
Realized gain on sale of inventory (2) 13,354 – – –
Accretion on Florence royalty obligation 3,416 – – –
Accretion on Cariboo consideration payable 1,555 – – –
Non-recurring other expenses for Cariboo adjustment 138 (916 ) 1,244 1,714
Estimated tax effect of adjustments 15,570 (194 ) (1,556 ) 1,355
Adjusted net income (loss) 7,728 24,061 19,659 (4,376 )
Adjusted EPS $ 0.03 $ 0.08 $ 0.07 $ (0.02 )
1. 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.
2. 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 (loss) in
the period the inventory was sold.
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 and fair value adjustments;
* 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
* Finance and other non-recurring costs of Cariboo acquisition.
Non-GAAP Performance Measures - Continued
(Cdn$ in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024
Net loss (28,560 ) (21,207 ) (180 ) (10,953 )
Depletion and amortization 22,425 24,641 20,466 13,721
Finance and accretion expenses 18,877 21,473 25,685 21,271
Finance income (1,330 ) (1,674 ) (1,504 ) (911 )
Income tax (recovery) expense (7,980 ) 11,707 (200 ) (3,247 )
Unrealized foreign exchange loss (gain) 2,074 40,462 (7,259 ) 5,408
Unrealized derivative loss (gain) and fair value adjustment 23,536 (25,514 ) 1,821 10,033
Share-based compensation expense (recovery) 5,349 (323 ) 1,496 2,585
Other operating costs – 4,132 4,098 10,435
Call premium on settlement of debt – – – 9,571
Loss on settlement of debt – – – 4,646
Realized gain on sale of inventory (1) – – – 3,768
Inventory write-ups to fair value that was sold or processed (2) – 1,905 3,266 4,056
Non-recurring other expenses for Cariboo acquisition – – – 394
Adjusted EBITDA 34,391 55,602 47,689 70,777
1. 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 EBITDA in the period
the inventory was sold.
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 EBITDA in the period when the inventories were sold or processed.
(Cdn$ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023
Net income 18,896 38,076 871 9,991
Depletion and amortization 15,024 13,326 15,993 15,594
Finance and accretion expense 19,849 12,804 14,285 13,468
Finance income (1,086 ) (972 ) (322 ) (757 )
Income tax expense 23,282 17,205 12,041 678
Unrealized foreign exchange loss (gain) 13,688 (14,541 ) 14,582 (10,966 )
Unrealized derivative loss (gain) and fair value adjustment 3,519 1,636 4,518 (6,470 )
Share-based compensation expense 5,667 1,573 727 417
Gain on Cariboo acquisition (47,426 ) – – –
Gain on acquisition of control of Gibraltar (1) (14,982 ) – – –
Realized gain on sale of inventory (2) 13,354 – – –
Non-recurring other expenses for Cariboo acquisition 138 – – 263
Adjusted EBITDA 49,923 69,107 62,695 22,218
1. 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.
2. 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 EBITDA in the period
the inventory was sold.
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 March 31 ,
(Cdn$ in thousands) 2025 2024
Earnings from mining operations 16,366 24,419
Add:
Depletion and amortization 22,425 15,024
Realized gain on sale of inventory (1) – 13,354
Earnings from mining operations before depletion, amortization and non-recurring items 38,791 52,797
1. 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 earnings from mining operations
in the period the inventory was sold
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) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 (1)
Site operating costs (included in cost of sales)
Taseko’s share 68,917 100,495 107,712 79,804 79,678
100% basis 68,917 100,495 107,712 79,804 90,040
Tons milled (thousand tons – 100% basis) 7,898 8,250 7,572 5,728 7,677
Site operating costs per ton milled $ 8.73 $ 12.18 $ 14.23 $ 13.93 $ 11.73
1. Q1 2024 results reflect the Company’s 87.5% effective interest in
Gibraltar for the period from January 1 to March 24, 2024 and 100% effective
interest for the period from March 25 to March 31, 2024
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 March 30, 2023 with an
effective date of March 15, 2023, which is available on SEDAR+. The Florence
Copper 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.
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 effect of COVID-19 and the response of local,
provincial, federal and international governments to the threat of COVID-19 on
our operations (including our suppliers, customers, supply chain, employees
and contractors) and economic conditions generally and in particular with
respect to the demand for copper and other metals we produce;
* uncertainties and costs related to the Company’s exploration and
development activities, such as those associated with continuity of
mineralization or determining whether mineral resources or reserves exist on a
property;
* uncertainties related to the accuracy of our estimates of mineral reserves,
mineral resources, production rates and timing of production, future
production and future cash and total costs of production and milling;
* uncertainties related to feasibility studies that provide estimates of
expected or anticipated costs, expenditures and economic returns from a mining
project;
* uncertainties related to the ability to obtain necessary licenses permits
for development projects and project delays due to third party opposition;
* 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, particularly laws, regulations and policies;
* changes in general economic conditions, the financial markets and in the
demand and market price for copper, gold and other minerals and commodities,
such as diesel fuel, 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;
* the effects of forward selling instruments to protect against fluctuations
in copper prices and exchange rate movements and the risks of counterparty
defaults, and mark to market risk;
* the risk of inadequate insurance or inability to obtain insurance to cover
mining risks;
* the risk of loss of key employees; 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;
* environmental issues and liabilities associated with mining including
processing and stock piling ore; and
* labour strikes, work stoppages, or other interruptions to, or difficulties
in, the employment of labour in markets in which we operate mines, or
environmental hazards, industrial accidents or other events or occurrences,
including third party interference that interrupt the production of minerals
in our mines.
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.com.
Cautionary Statement on Forward-Looking Information
This discussion includes certain statements that may be deemed
"forward-looking statements". All statements in this discussion, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities, and events or
developments that the Company expects are forward-looking statements.
Although we believe the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration successes,
continued availability of capital and financing and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements.
All of the forward-looking statements made in this MD&A are qualified by these
cautionary statements. We disclaim any intention or obligation to update or
revise any forward-looking statements whether as a result of new information,
future events or otherwise, except to the extent required by applicable law.
Further information concerning risks and uncertainties associated with these
forward-looking statements and our business may be found in our most recent
Form 40-F/Annual Information Form on file with the SEC and Canadian provincial
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