Taseko Mines (TKO) Q4 2024 earnings summary

Executive summary

• Overcame operational challenges at Gibraltar, including milling disruptions, major maintenance, and an 18-day labor strike, to deliver strong Q4 and annual financial results, achieving full-year 2024 Adjusted EBITDA of $224 million and Adjusted net income of $57 million, despite a GAAP net loss of $13 million due to non-recurring items and inventory write-ups.

• Advanced construction at Florence, which is over 60% complete and on track for first production in about 10 months, targeting late 2025.

• Maintained a solid balance sheet, ending 2024 with over CAD 330 million (US$331 million) in available liquidity after significant capital expenditures.

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

Financial highlights

• Generated CAD 224 million (US$224 million) of adjusted EBITDA and CAD 233 million (US$233 million) of cash flow from operations, both improvements over 2023.

• Reported revenues of CAD 608 million (US$608 million), the highest ever, driven by 108 million pounds of copper sales and full ownership of Gibraltar.

• GAAP net loss of CAD 13 million (US$13 million), but adjusted net income of CAD 57 million (US$57 million), up year-over-year.

• Adjusted earnings for Q4 were CAD 10.5 million (US$10 million) on 27 million pounds of sales.

• Year-end cash balance of CAD 173 million (US$173 million) and total liquidity of CAD 330 million (US$331 million).

Outlook and guidance

• 2025 copper production guidance at Gibraltar is 120–130 million pounds, with production weighted to the second half of the year.

• Florence project expected to reach first production in about 10 months, with ramp-up through 2026 and full capacity of 85 million pounds annually.

• Expect 3–4 million pounds of cathode production from the restarted SX/EW plant in 2025, increasing to 4–6 million pounds annually.

• Capitalized stripping costs expected to rise to CAD 40–50 million in 2025, mainly in H1.

• Copper price protection in place for 2025 with a floor of CAD 4/lb (US$4.00/lb) and ceiling of CAD 5.20/lb for 108 million pounds.