Taseko looks forward to stronger second-half output

Midtier copper producer Taseko Mines has reported adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of C$120.7-million for the six months ended June 30.

That compares with adjusted Ebitda of C$58.28-million reported for the first half of 2023.

Earnings from mining operations before depletion, amortisation and nonrecurring items also increased to C$129.73-million for the six months under review, compared with C$68.8-million in the prior comparable period.

Further, the company’s adjusted net income for the six-month period was C$38.23-million, compared with C$712 000 in the prior comparable period.

Production was, however, 3.2% lower year-on-year at 49.9-million pounds of copper, mainly as a result of a strike by employees at the company’s Gibraltar mine, in British Columbia, in June and planned downtime in Concentrator #1 for the relocation of the in-pit crusher and other concurrent maintenance.

Operations at Gibraltar resumed on June 19, after an 18-day strike-related suspension.

Taseko expects stronger production at the mine during the second half of this year, following the completion of the major project and maintenance work in both concentrators.

Copper production from Gibraltar is expected to be between 110-million and 115-million pounds for the full-year.

Taseko plans to refurbish the Gibraltar solvent extraction and electrowinning (SX/EW) plant, which has been idle since 2015, later this year, with the plant scheduled for a 2025 restart.

“[The second quarter] was our first full quarter with 100% ownership of Gibraltar and, despite the operational disruptions, the mine’s financial performance was quite strong as we generated C$35-million of operating cash flow,” comments Taseko president and CEO Stuart McDonald.

Construction has, meanwhile, started at the commercial production facility at the Florence copper project, in Arizona, in the US.

All major SX/EW plant components are on site and previous work on detailed engineering and procurement of long-lead items has derisked the construction schedule, the company reports.

First copper production is expected in the fourth quarter of 2025.

The Florence project is expected to produce 1.5-billion pounds of copper over its 22-year life.

“We’re pleased with the initial construction progress at Florence as all key activities are advancing on schedule. 

“We’ve also had good success in recruiting key management and technical roles for the commercial operation and now have nearly half of the 170 permanent positions filled. Many of these positions have been filled by local Arizonans and there is excitement about participating in the development of America’s next copper mine,” McDonald says.