Taseko Mines' Q4 2024: Unpacking Contradictions in Ore Quality, Financing, and Production Expectations

These are the key contradictions discussed in Taseko Mines Limited's latest 2024Q4 earnings call, specifically including: Gibraltar ore quality and throughput, Florence Copper Project financing strategy, CapEx expectations at Gibraltar, acid supply strategy, and production expectations for Gibraltar:



Gibraltar Mine Performance:
- Gibraltar produced 106 million pounds of copper and 1.4 million pounds of molybdenum in 2024.
- Production was impacted by milling disruptions, major maintenance, an in-pit crusher move, and a labor strike, resulting in a 15 million-pound loss in production.
- The mine achieved a record quarter in Q4 with 29 million pounds of copper at a cash cost of US$2.42 per pound, primarily due to stockpiled ore in the Connector pit.

Florence Project Progress:
- Florence construction is progressing on schedule, with overall project completion at over 60%.
- The company anticipates a ramp-up period in 2026, expecting to produce 40-50 million pounds in 2026 and reaching 80 million pounds or higher in 2027.
- Acid supply strategy involves an ongoing dialogue with four acid suppliers, with an RFP to be issued this quarter for formalizing future acid supply.

Financial Results and Strategic Moves:
- Taseko generated CAD224 million of adjusted EBITDA and CAD233 million of cash flow from operations in 2024.
- The company opportunistically refinanced its bonds earlier in the year, maintaining over CAD330 million of available liquidity despite significant capital expenditures at Florence.
- The 100% acquisition of Gibraltar was an accretive transaction, contributing to the financial improvement over 2023.

Long-term Projects and Strategic Initiatives:
- The Yellowhead project is progressing with permitting expected to advance this year, benefiting from potential reductions in permitting time lines.
- An updated technical report for Yellowhead will be published in Q2, incorporating updated metal prices, capital and operating costs, and new tax credits for copper mine development.
- The company remains optimistic about reaching a successful conclusion in its dialogue with the Tsilhqot'in Nation and BC provincial government regarding the New Prosperity project.