Taseko Mines: A High-Conviction Buy for 2026 as Copper Demand Accelerates

The global transition to electrification is reshaping commodity markets, with copper emerging as a linchpin of the energy transition. As demand surges for electric vehicles, renewable energy infrastructure, and grid modernization, the copper supply gap is tightening, creating a compelling backdrop for producers with operational discipline and strategic capital deployment. Taseko Mines Limited (TSX: TKO) stands out as a prime beneficiary of this paradigm shift, leveraging robust operational performance, disciplined cost management, and a clear-eyed electrification strategy to position itself for outsized gains in 2026.

Operational Momentum: A Foundation for Growth

Taseko's third-quarter 2025 results underscore its operational resilience and efficiency. The company reported Adjusted EBITDA of $62 million and revenues of $174 million, driven by the sale of 26 million pounds of copper and 421,000 pounds of molybdenum. At its flagship Gibraltar mine, production reached 27.6 million pounds of copper, with a total operating (C1) cost of just $2.87 per pound-a testament to its cost-competitive positioning according to the company's Q3 results. Notably, copper head grade and recovery rates (0.22% and 77%, respectively) are on an upward trajectory, with further improvements expected in Q4 2025 as reported in Q3 results.

Beyond Gibraltar, Taseko's Florence Copper project is a game-changer. The SX/EW plant achieved substantial completion in September 2025, with wellfield operations commencing in October and first copper cathode production anticipated early in 2026. This project, which leverages low-cost solvent extraction and electrowinning technology, is poised to add a new, scalable source of copper supply at a time when global demand is projected to grow by 16% by 2026.

Strategic Capital Deployment: Fueling Electrification-Driven Growth

Taseko's recent equity financing of $172.8 million in October 2025 exemplifies its proactive approach to capital allocation. The proceeds were used to repay high-cost debt and accelerate wellfield development at Florence, reducing financial leverage while prioritizing growth. This disciplined use of capital aligns with broader industry trends: as copper prices remain elevated-supported by accelerating electrification demand and constrained mine supply-Taseko is optimizing its balance sheet to fund expansion without sacrificing operational flexibility.

The company's strategy is further validated by macroeconomic tailwinds. According to industry analysis, global copper demand is set to outstrip supply by 30% by 2035 due to the challenges of scaling new mines and the surge in electricity-dependent technologies. Taseko's CEO has emphasized that these dynamics will keep copper prices "strong in 2026," a view reinforced by the metal's critical role in decarbonization efforts as reported in Q3 results.

Positioning for the Electrification Era

Taseko's dual focus on operational efficiency and strategic expansion places it at the forefront of the electrification-driven copper boom. The Florence project, with its low cash costs and alignment with sustainable mining practices, is uniquely positioned to meet the demand from electric vehicle manufacturers, solar panel producers, and grid operators. Meanwhile, Taseko's ability to consistently deliver production growth-despite industry-wide challenges like rising input costs-highlights its operational excellence.

For investors, the case for Taseko is clear: a company with a proven track record of execution, a clear line of sight to near-term production increases, and a capital structure that supports long-term value creation. As the world races to electrify its economy, Taseko Mines is not just keeping pace-it is accelerating ahead.