Taseko(US:TGB)2024-11-07 18:39Financial 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]