Taseko Mines (TKO) Q3 2024 earnings summary

Executive summary

• Gibraltar Mine achieved solid operational performance in Q3, producing 27.1 million pounds of copper and 421,000 pounds of molybdenum, despite disruptions from planned mill repairs and a labor strike.

• Florence Copper construction is progressing on schedule, with 40 of 90 wells completed and first production expected in late 2025; no lost-time injuries or environmental incidents reported.

• Year-to-date construction capital spending at Florence reached $97 million, with total costs expected within 10%-15% of the $232 million estimate.

• Completed acquisition of the remaining 12.5% interest in Gibraltar, now owning 100% of the mine.

• Yellowhead project is advancing toward environmental assessment, with plans to update the technical report next year.

Financial highlights

• Q3 2024 revenues were $155.6 million, with adjusted EBITDA of $48 million, earnings from mining operations of $55 million, and operating cash flow of $65 million.

• GAAP earnings were $0.01 per share; adjusted net income was $0.03 per share or $8.2 million.

• Realized copper price was $4.23 per pound, in line with LME averages.

• C1 cash cost was $2.92 per pound, impacted by lower capitalized stripping and production volumes.

• Cash position at quarter-end was $209 million, with total liquidity of approximately $317 million after increasing the credit facility.

Outlook and guidance

• 2024 copper production guidance revised to 105–110 million pounds, down from 115 million, due to lost production from the labor strike.

• 2025 copper production expected to rise to 120–130 million pounds, with higher grades and mill throughput; production will be weighted to the second half of the year.

• Florence Copper remains on track for first copper in late 2025 and is on budget.

• Off-property costs expected to decline further in 2025 as older offtake agreements expire, with TCRCs anticipated to be near zero.

• Copper collar contracts secure minimum prices of US$3.75/lb for Q4 2024 and US$4.00/lb for 2025.