Taseko Mines (TKO) Q2 2024 earnings summary

Executive summary

• Achieved 100% ownership of Gibraltar mine, completed bond refinancing, and secured Florence project financing.

• Adjusted EBITDA of $71M and earnings from mining operations of $77M in Q2, aided by a $26M insurance recovery.

• Gibraltar mine produced 20.2M lbs copper and 185k lbs molybdenum in Q2, impacted by planned downtime and an 18-day labor strike.

• Florence construction advanced on schedule, with over 200 contractors on site and 18 wells completed by end of June.

• Restart of Gibraltar SX/EW plant expected in Q2 2025, a year ahead of schedule, to add 4–5M lbs copper annually.

Financial highlights

• Q2 2024 revenues were $137.7M, up from $111.9M in Q2 2023.

• Adjusted EBITDA was $70.8M, and adjusted net income was $30.5M ($0.10/share); net loss was $11M ($0.04/share).

• Realized copper price nearly $4.50/lb, up $0.60 quarter-over-quarter and 20% year-over-year.

• Insurance recovery of $26.3M recognized in Q2 for prior repairs and business interruption.

• Ended Q2 with $199M cash and over $300M in available liquidity.

Outlook and guidance

• 2024 copper production guidance revised to 110–115M lbs, slightly below original due to strike-related disruptions.

• Second half 2024 production expected to increase 20–30% over first half.

• Florence Copper project remains on schedule for first copper production in Q4 2025.

• Price protection program in place: minimum $3.75/lb for 2024, $4/lb for 2025.

• Strong copper market fundamentals anticipated; hedging reduces price risk during Florence construction.