Taseko Mines Limited (NYSE: TGB ) (TSX: TKO:CA ) is a small-cap copper producer, based in British Columbia and Arizona. Its flagship producing asset is its Gibraltar mine in BC, but its near-term Florence Copper project in Arizona will be a trueI am interested in small capitalized companies with a high optionality to the upside compared to the relative downside risk. I am grounded in a value based approach but will also explore special and short situations. I am a trained CPA and continue to practice in ind ...

Taseko Mines (NYSE: TGB ) is a metal & mining company based in Canada focusing on copper projects in North America. Its flagship mine is the Gibraltar mine in British Columbia where it holds 100% ownership and the mine produces nearlyEquity investor with focus on long term and medium term value. Focuses on companies with good fundamentals with a long haul for investing and sector agnostic. Have passed CFA Level 1. Looking forward to building a base as an independent blogger on equity research reports.Analys ...

Group 1 - Taseko Mines Limited (NYSE: TGB) is a Canadian mining company primarily focused on copper production [1] - The Gibraltar Mine in British Columbia is the company's main operation and has a long history of production [1] Group 2 - The company is categorized as a small- to mid-cap entity, which often attracts less attention from investors compared to large-cap companies [1]

Financial Performance - Taseko reported revenues of $139.1 million for Q1 2025, a decrease of $7.8 million (5.3%) compared to $146.9 million in Q1 2024[7]. - The company experienced a net loss of $28.6 million in Q1 2025, compared to a net income of $18.9 million in Q1 2024, reflecting a change of $47.5 million[7]. - Adjusted net loss was C$6.9 million (C$0.02 loss per share) in Q1 2025, compared to adjusted net income of C$7.7 million (C$0.03 earnings per share) in Q1 2024, reflecting a decrease of C$14.7 million[51]. - Copper revenues decreased to C$127.7 million in Q1 2025 from C$143.9 million in Q1 2024, driven by a reduction of 6.5 million pounds sold[54]. - Molybdenum revenues increased to C$9.7 million in Q1 2025 from C$6.6 million in Q1 2024, primarily due to increased sales volume[56]. - Cash flows provided by operations were $55.9 million in Q1 2025, a decrease from $59.6 million in Q1 2024[82]. - Cash flows used for investing activities increased to $130.9 million in Q1 2025 from $46.7 million in Q1 2024, including $51.7 million for capital expenditures at Gibraltar and $80.0 million at Florence Copper[83]. - Cash flows from financing activities were $21.5 million in Q1 2025, down from $48.5 million in Q1 2024, with $29.6 million from shares issued and $14.4 million from the Mitsui copper stream[84]. Production and Operations - Copper production at Gibraltar was 20.0 million pounds in Q1 2025, down 9.7 million pounds (32.7%) from 29.7 million pounds in Q1 2024[7]. - Molybdenum production increased to 336 thousand pounds in Q1 2025, compared to 247 thousand pounds in Q1 2024, with an average price of US$20.53 per pound[16]. - The Company expects average TCRC rates to reduce to nil in 2025 and 2026, down from approximately US$0.09 per pound in 2024[22]. - The refurbishment of Gibraltar's SX/EW plant is complete, expected to start producing copper cathode in Q2 2025[88]. - The company expects to achieve copper production of 120 to 130 million pounds after the Connector pit pushback is completed, with production weighted towards the second half of 2025[87]. - Total pounds of copper produced in Q1 2025 was 19,959 thousand pounds, compared to 28,595 thousand pounds in Q4 2024, reflecting a decrease of 30.5%[124]. Project Developments - Construction of the Florence Copper facility was approximately 78% complete as of March 31, 2025, with first copper cathode production expected in Q4 2025[10]. - The Company has completed 80 out of 90 new production wells for the Florence Copper project as of March 31, 2025[26]. - The Florence Copper commercial facility construction costs were US$51.4 million in Q1 2025, with total costs incurred since the beginning of construction reaching US$206.3 million[28]. - The estimated net present value of the Florence Copper project is US$930 million, with an after-tax internal rate of return of 47% and a payback period of 2.6 years[32]. - The Company plans to publish an updated technical report on the Yellowhead copper project in 2025, incorporating new Canadian tax credits for copper mine development[36]. - The Company is ready to enter the environmental assessment process for the Yellowhead project, with plans to submit an Initial Project Description in Q2 2025[37]. Costs and Expenses - Total operating cost (C1) for copper production was US$2.26 per pound in Q1 2025, down from US$2.46 in Q1 2024[18]. - Treatment and refining costs decreased by $4.9 million to $0.4 million in Q1 2024, reflecting lower TCRC rates under the Company's 2025 favorable offtake agreement terms[57]. - Site operating costs decreased by $10.8 million to $68.9 million in Q1 2024, primarily due to increased capitalized stripping costs and lower input prices[58]. - Transportation costs decreased by $4.2 million to $6.0 million in Q1 2024, reflecting lower sales volume during the quarter[59]. - Cost of sales increased slightly by $0.3 million to $122.8 million in Q1 2024, impacted by changes in finished goods and stockpile inventories[60]. - Depletion and amortization increased by $7.4 million to $22.4 million in Q1 2024, reflecting depreciation of stockpile inventory costs processed during the quarter[61]. Financial Position - The company had a cash balance of $121 million and available liquidity of $279 million as of March 31, 2025[10]. - Cash and equivalents decreased by $51.9 million to $120.8 million as of March 31, 2025, compared to December 31, 2024[74]. - The company has significant capital commitments related to the Cariboo acquisition, with $30 million paid to Sojitz as of March 31, 2025, and additional payments scheduled[97]. - The company has capital expenditure commitments of $24.6 million for the Florence Copper commercial facility construction project[98]. - The company has hedged 81 million pounds of copper production for the remainder of the year to mitigate commodity price risks[91]. Management and Governance - Total KMP compensation for Q1 2025 was Cdn$7,333,000, a decrease of 4.5% from Cdn$7,676,000 in Q1 2024[119]. - The company has not made any changes to its internal control over financial reporting during the three months ended March 31, 2025[112].

Group 1 - The 14% rise in copper prices year to date has resulted in mixed performances among copper miners, with the Global X Copper Miners ETF (COPX) showing minimal increase [1] - Despite the overall ETF performance, some individual copper miners have demonstrated strong performance [1] Group 2 - Mountain Valley Value Investments focuses on identifying undervalued companies with strong growth potential across various sectors [1] - The investment philosophy emphasizes long-term value and disciplined research to uncover opportunities that can deliver strong returns [1]

Financial Data and Key Metrics Changes - The company generated CAD224 million of adjusted EBITDA and CAD233 million of cash flow from operations, showing notable improvements over 2023 due to a higher copper price and increased ownership in Gibraltar [10][26] - For the year, sales reached 108 million pounds of copper, generating revenues of CAD608 million, the highest reported by the company [26] - The company posted a GAAP net loss of CAD13 million for 2024, but on an adjusted basis, net income was CAD57 million, a CAD0.04 increase per share over the prior year [27][28] Business Line Data and Key Metrics Changes - Gibraltar produced 106 million pounds of copper and 1.4 million pounds of molybdenum in 2024, with a cash cost of US$2.42 per pound in Q4 [11][12] - Moly production in Q4 was nearly 600,000 pounds, the highest since 2021, with expectations for continued strong production levels in 2025 [13] - The company expects to return to life of mine average production levels in 2025, with guidance of 120 million to 130 million pounds for the year [14] Market Data and Key Metrics Changes - The average copper price for the year was US$4.17 per pound, contributing to the record revenues [26] - The company has implemented copper price protection for 2025 with a minimum price of CAD4 per pound and a ceiling price averaging CAD5.20 per pound [37] Company Strategy and Development Direction - The company is advancing the Yellowhead project permitting and aims to publish an updated technical report in Q2 2025, incorporating new Canadian tax credits for copper mine development [21][23] - Construction at Florence is progressing smoothly, with expectations to produce 40 million to 50 million pounds in 2026 and ramping up to 85 million pounds annual capacity [20][21] Management Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the progress made despite challenges faced at Gibraltar, including milling disruptions and a labor strike [8] - The company remains optimistic about the future, particularly with the expected ramp-up in production and the successful execution of projects like Florence [20][21] Other Important Information - The company ended 2024 with over CAD330 million of available liquidity after significant capital expenditures at Florence [9][36] - Total site costs at Gibraltar were CAD414 million, CAD17 million lower than 2023 due to reduced input costs and the impact of the labor strike [31] Q&A Session Summary Question: What was behind the higher sustaining CapEx spend at Gibraltar in the fourth quarter? - The higher sustaining capital was attributed to the timing of repairs and maintenance on the mobile fleet, with expectations for ordinary levels of CAD20 million to CAD30 million for FY 2025 [42][43] Question: Have contracts for the acquisition of acid been put in place for Florence? - The company is in dialogue with four acid suppliers and will issue an RFP to secure future acid supply [45] Question: How is throughput at Gibraltar looking so far this quarter? - Throughput continues to be strong, with production expected to be weighted to the second half of the year due to supplementing ore feed with stockpile material [47]

Production and Operations - Taseko's Gibraltar mine produced 105.6 million pounds of copper in 2024, a decrease of 13.0% from 122.6 million pounds in 2023 due to lower mill running time[13] - Total copper production for 2025 is expected to be in the range of 120 to 130 million pounds, driven by increased mill availability and higher throughput[23] - Molybdenum production was 1.4 million pounds in 2024, a 17% increase from 1.2 million pounds in the prior year, with an average price of US$21.30 per pound, down 12% from US$24.19 in 2023[17] - The strip ratio increased to 1.6 in 2024 from 1.3 in 2023 as mining operations transitioned to the Connector pit, with ore stockpiles increasing by 5.0 million tons[15] - Total copper produced in Q4 2023 was 29,883 thousand pounds, with total costs per pound produced at C$1.99, a decrease from C$2.50 in Q3 2023[183] Financial Performance - Revenues for the year ended December 31, 2024, were C$608.1 million, an increase of 15.8% from C$524.9 million in 2023[9] - The company reported a net loss of C$13.4 million for 2024, compared to a net income of C$82.7 million in 2023, reflecting a significant decline[9] - Adjusted EBITDA for the year was C$224.0 million, up from C$190.1 million in 2023, representing a 17.8% increase[9] - The company reported a net loss of Cdn$13.4 million ($0.05 loss per share) for the year ended December 31, 2024, compared to a net income of Cdn$82.7 million ($0.29 earnings per share) in the prior year, primarily due to unrealized foreign exchange losses and increased production costs[62] - The company reported a net loss of $21.2 million in Q4 2024, a decrease of $59.3 million compared to a net income of $38.1 million in Q4 2023[126] Costs and Expenses - Total operating costs (C1) for the year were US$2.66 per pound produced, with an average realized copper price of US$4.17 per pound[9] - Cost of sales for 2024 was Cdn$490.9 million, an increase of Cdn$116.4 million from the prior year, primarily due to higher site operating costs and transportation costs[71] - Total site costs at Gibraltar were $413.9 million in 2024, $16.9 million lower than 2023, primarily due to reduced input costs and the impact of an 18-day labor strike[16] - Site operating costs rose by $35.7 million in Q4 2024, primarily due to decreased capitalized waste stripping and increased ownership in Gibraltar[134] - The total costs per pound produced for the year ended December 31, 2024, were C$2.37, reflecting a decrease from C$2.68 in 2023[183] Cash Flow and Liquidity - In Q4 2024, Taseko's cash flow from operations was C$73.3 million, compared to C$62.8 million in Q4 2023, marking a 24.0% increase[10] - The company had a cash balance of C$173 million and approximately C$331 million of available liquidity at December 31, 2024[10] - Cash flow from operations increased to Cdn$232.6 million in 2024, up from Cdn$151.1 million in the prior year, driven by higher copper and molybdenum sales volumes[99] - Cash used for investing activities was Cdn$317.9 million in 2024, compared to Cdn$167.6 million in 2023, reflecting increased capital expenditures[101] - Cash provided by operating activities for Q4 2024 was Cdn$73.3 million, an increase from C$62.8 million in Q4 2023[123] Acquisitions and Investments - Taseko acquired the remaining 12.5% interest in Gibraltar in March 2024, increasing its effective interest in the mine from 87.5% to 100%[9] - The company completed the acquisition of an additional 12.5% interest in the Gibraltar mine for a minimum of Cdn$60 million, with an initial payment of Cdn$10 million made at closing[114] - The acquisition of the remaining 50% of Cariboo from Dowa and Furukawa was completed for a minimum of Cdn$117 million, with an initial payment of Cdn$5 million[115] - The company recognized a bargain purchase gain of Cdn$47.4 million on the acquisition of the remaining 50% of Cariboo, completed on March 25, 2024[83] - The company has capital expenditure commitments of Cdn$47.9 million related to equipment for the Florence Copper project as of December 31, 2024[119] Project Developments - The company commenced construction of the commercial production facility at the Florence Copper project, which is approximately 56% complete as of year-end 2024[9] - Construction costs for the Florence Copper project totaled US$154.97 million for the year ended December 31, 2024, with total project expenditures reaching US$203.43 million[32] - The estimated remaining construction costs for the Florence Copper commercial facility are US$232 million, with first copper production expected in late 2025[36] Market and Pricing - The average realized copper price increased to US$4.17 per pound in 2024, compared to US$3.84 per pound in 2023[67] - The average molybdenum price in the fourth quarter of 2024 was US$21.71 per pound, with molybdenum generating a by-product credit of US$0.42 per pound of copper produced[21] - The Company has secured a minimum copper price of US$4.00 per pound for 108 million pounds of copper for 2025 through copper collar contracts[28] - Molybdenum revenues increased by Cdn$8.7 million due to higher sales volumes, despite lower average prices[70] Tax and Regulatory - The effective tax rate for 2024 was 174.3%, significantly higher than 37.7% in 2023, primarily due to the purchase of the residual 12.5% interest in Cariboo[88] - The effective tax rate for Q4 2024 was negative at (123.2)%, compared to 31.1% in the prior year, primarily due to unrealized foreign exchange losses[148] Other Financial Metrics - Total assets grew to Cdn$2.2 billion in 2024, an increase of Cdn$610.9 million from Cdn$1.6 billion in 2023, indicating significant asset expansion[92] - Property, plant, and equipment increased by Cdn$484.1 million in 2024, including Cdn$287.3 million for Florence Copper project expenditures[94] - Finance expenses for the year ended December 31, 2024, increased to Cdn$40.8 million from Cdn$39.1 million in 2023, primarily due to higher principal on new senior secured notes and additional borrowings[85]

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Core Viewpoint - Taseko Mines Limited is making significant progress on its Florence Copper project, with first copper production expected before the end of 2025, despite a recent setback regarding a tax credit application [2][3]. Project Progress - As of December 31, 2024, the overall project completion was at 56% with construction activities on schedule and approximately 450,000 project hours worked without reportable injuries or environmental incidents [2]. - The project has around 290 construction and support personnel on site, and key activities in the fourth quarter included the completion of process ponds and surface water runoff pond construction, and the construction of 17 production wells, bringing the total to 51 out of 90 planned wells [5]. Financial Position - The company reported a strong financial position with C$330 million of available liquidity at year-end, including an undrawn US$110 million revolving credit facility [2]. Market Context - The Florence Copper project is positioned to meet the growing US copper demand and is noted as the only greenfield copper mine currently under construction in the USA, expected to become the third largest copper cathode producer in the country [2][3].

Financial Data and Key Metrics Changes - Third quarter copper production was 27 million pounds with a head grade of 0.23% copper, and copper recoveries increased to 79% compared to the previous quarter [7][10] - Adjusted EBITDA for the quarter was $48 million, with earnings from mining operations at $55 million and operating cash flow of $65 million [10][22] - The realized copper price in Q3 was $4.23 per pound, which contributed to solid financial results [10][23] - The company now forecasts annual copper production to be between 105 million pounds and 110 million pounds, down from the original guidance of 115 million pounds due to lower mill availability [8][11] Business Line Data and Key Metrics Changes - Molybdenum production increased to over 400,000 pounds in Q3, the highest since 2021, driven by higher moly grades in the new Connector pit [8] - Total site costs for Q3 were $111 million, consistent with previous quarters, while C1 cash cost was US$2.92 per pound [9][25] Market Data and Key Metrics Changes - The company expects TCRCs to be close to zero in 2025, down from approximately $0.17 per pound in 2023, which will significantly reduce operating costs [10][25] - The copper price trend is positive, with expectations for higher copper grades and production in 2025 [11][31] Company Strategy and Development Direction - The company is focused on ramping up construction activities at the Florence project, with significant progress reported [12][13] - Plans for the Yellowhead project include submitting an initial project description for environmental assessment, with an update to the technical report planned for next year [14][15] - The company is also advancing growth initiatives at Gibraltar, including the restart of the SX/EW plant and studies on sulfide leaching [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a strong production year in 2025, with expectations for higher mill throughput and copper production [11] - The company remains cautious about production being weighted to the second half of 2025 due to lower grade stockpiled ore in the first half [11] - Management highlighted the importance of maintaining a strong balance sheet, with a cash balance of over CAD200 million at the end of Q3 [17][29] Other Important Information - The company has committed approximately 75% of the expected budget for the Florence project, which is tracking within the 10% to 15% estimate of $232 million [31] - The company applied for a tax credit of up to US$110 million under the U.S. Department of Energy's program, which could provide additional funding [31] Q&A Session Summary Question: What will throughput look like in Q4? - Management indicated that throughput has been running over design capacity, around 88,000 to 89,000 tons per day, with potential for further upside [33][34] Question: Will oxidization of the ore continue into Q1? - Management noted that as mining progresses deeper, oxidation will reduce, leading to improved performance in Q4 and into next year [35][36] Question: What percentage of the Florence budget has been committed? - Approximately 75% of the overall expected budget has been committed at this point [37] Question: What are the next steps for the New Prosperity project? - The future of the New Prosperity project is dependent on ongoing negotiations, with hopes for a deal by the end of the year [39]