Taseko Mines Conference Call Summary Company Overview - **Company**: Taseko Mines Limited - **Industry**: Copper Mining - **Focus**: Acquires, develops, and operates copper mines in North America, primarily in British Columbia and Arizona [1][4] Key Points Current Operations - **Gibraltar Mine**: - Located in British Columbia - Second largest copper mine in Canada and fourth largest in North America - 20 years of operational history with 20 years of mine life remaining [4][5] - **Florence Copper Project**: - Located in Arizona - Construction completed on time and within budget - Expected to start operations by the end of 2025, producing copper cathode [5][12] - Utilizes in-situ recovery (ISR) method, which is uncommon for copper mining [11][34] Financial Performance - **Market Capitalization**: Approximately $1.8 billion [7] - **Copper Price**: Currently around $4.84 per pound in the U.S., with expectations of reaching $5 [7][8] - **EBITDA Expectations**: Anticipated annual EBITDA of about $700 million at $4.50 copper [17] - **Debt**: Approximately $800 million in Canadian dollar debt, with plans to reduce leverage [18] Project Economics - **Florence Project Economics**: - Estimated upfront capital costs increased to $265 million from $230 million [12] - Projected NPV of $1.2 to $1.3 billion at current copper prices [12] - Operating costs estimated at $1.11 per pound [11] - **Gibraltar Mine Valuation**: Estimated worth of $2.2 billion Canadian [17] Market Dynamics - **Copper Supply and Demand**: - Strong fundamentals due to a supply deficit, exacerbated by recent operational issues at major mines like Grasberg [8][9] - New demand driven by sectors such as AI and data centers [8] - **Industry Challenges**: - Long lead times for new copper mines (upwards of 20 years) and historical underperformance in mine development [8] Environmental and Community Engagement - **Environmental Benefits of ISR**: - Lower water usage, reduced greenhouse gas emissions, and minimal landscape alteration [12][13] - **Community Relations**: - Engaged with First Nations communities for the Yellowhead Project, emphasizing the importance of partnership [30] Future Outlook - **Production Goals**: - Expected to produce 40 million pounds of copper in the first year of operation at Florence, ramping up to 85 million pounds by 2027 [15] - **Debt Management**: - Focus on reducing debt and achieving a net cash position by the end of 2028 [18] Additional Insights - **Labor Market**: - Positive hiring environment in Arizona, with about 120 employees hired for the Florence operation [26] - **Unique Mining Process**: - ISR method is not commonly used in copper mining, providing a competitive edge [34] Conclusion Taseko Mines is positioned for growth with its focus on copper production in North America, particularly through the Florence Copper Project. The company is navigating market dynamics favorably, with strong copper prices and a strategic approach to debt management and community engagement.

Taseko Mines Limited (NYSE:TGB) is one of the 10 Cheapest Penny Stocks to Buy Now. Taseko Mines Limited (TGB) Releases its Earnings Report for the Second Quarter of 2025 On August 21, 2025, Taseko Mines Limited (NYSE:TGB) released its earnings report for the second quarter of 2025. Taseko Mines Limited (NYSE:TGB) posted $116 million in revenue with an adjusted net loss of $0.04 per share, slightly missing analyst expectations. Despite the revenue shortfall, the company’s stock went up by 0.7% after hour ...

Taseko Mines Conference Summary Company Overview - **Company Name**: Taseko Mines (NYSEAM:TGB) - **Market Capitalization**: Approximately $1.2 billion USD - **Share Price**: Approximately $3.74, recently hitting a fourteen-year high [14][59] Key Assets and Projects - **Gibraltar Mine**: - Location: British Columbia, Canada - Production: 125 to 130 million pounds of copper per year - Remaining Reserves: 20 years - Average Grade: 0.25% copper - Unit Costs: Approximately $2.30 per pound, generating significant cash flow at current copper prices of $4.50 [5][21][22][28] - **Florence Copper Project**: - Location: Arizona, nearing completion with over 95% construction completed - Expected Production: 85 million pounds of copper cathode per year, increasing overall copper production by about 70% - Operating Costs: Approximately $1.10 per pound, significantly lower than Gibraltar [6][30] - Economic Metrics: - After-tax NPV at $4.50 copper: $1.3 billion USD - Internal Rate of Return (IRR): 50% with a 2.5-year payback period [31][32] - **New Prosperity Project**: - Recent developments include an agreement with the province of BC and the Chelcotin Nation, receiving $75 million and establishing a trust for future benefits [51][52] - Contains 13 million ounces of gold and 5 billion pounds of copper, valued between $5 billion to $10 billion at current metal prices [52] - **Yellowhead Project**: - Estimated Capital Cost: $2 billion - Expected Production: 180 million pounds of copper per year over a 25-year mine life - Initial Costs: $1.62 per pound for the first five years, $1.90 per pound over the life of the mine [53][55] Market Dynamics - **Copper Market**: - Current Price: Approximately $4.50 per pound - Supply Concerns: Significant supply deficits projected, with estimates of a 3.3 million ton deficit in a 26 million ton market over the next five years [20][19] - Demand Drivers: Increased demand from AI, data centers, and traditional sectors [18] Financial Performance and Valuation - **Cash Flow Generation**: Expected to produce between $500 million to $700 million CAD of EBITDA per year from Gibraltar and Florence combined, depending on copper prices [58] - **Valuation Gap**: Company believes it is undervalued compared to peers, trading at a significant discount despite having substantial reserves [56][58] Strategic Focus - **Geographic Focus**: Commitment to North America due to favorable regulatory environments and reduced risks of asset expropriation [11] - **Environmental Considerations**: Florence project utilizes in situ recovery technology, resulting in lower energy consumption, carbon emissions, and water usage compared to traditional mining methods [41][42] Conclusion - Taseko Mines is positioned for significant growth with the ramp-up of the Florence Copper Project and the potential development of the Yellowhead and New Prosperity projects, amidst a favorable copper market environment [59]

Core Viewpoint - The news highlights a significant rise in copper-related stocks due to the production halt at the Grasberg copper mine in Indonesia, which may lead to increased copper prices and exacerbate raw material shortages for smelting plants [1] Group 1: Stock Performance - Hudbay Minerals saw an increase of over 8% [1] - Ero Copper rose by more than 6% [1] - Freeport-McMoRan gained over 5% [1] - Southern Copper and Taseko Mines both increased by more than 4% [1] Group 2: Market Analysis - The Grasberg copper mine, the second-largest globally, has halted production due to an accident, which could lead to a long-term disruption [1] - ING analysts suggest that the prolonged interruption at Grasberg may further elevate copper prices and worsen the existing raw material shortages faced by smelting plants [1] Group 3: Future Projections - Goldman Sachs' latest report indicates that the surge in AI demand and escalating geopolitical tensions have made aging power grids a "vulnerable link" in energy security for Western countries [1] - The need for power grid upgrades is expected to drive copper prices to $10,750 per ton by 2027 [1]

Group 1 - The core viewpoint of the article highlights a significant rise in the U.S. copper mining sector, with companies like Ero Copper, Southern Copper, Taseko Mines, and Hudbay Minerals experiencing notable stock price increases [1] - The international copper futures contract saw an increase of over 2%, currently priced at 72,480.00 yuan per ton [1] - UBS has revised its copper price forecasts upward for the next two years, increasing the projections by 3% to $4.37 per pound for 2024 and $4.80 per pound for 2025 [1] Group 2 - The rise in copper prices is attributed to limited supply growth, pressure on refined output, and a recovery in traditional demand dynamics [1] - The fundamental outlook for copper in 2026 and 2027 is expected to continue supporting prices due to these factors [1]

Core Thesis - Taseko Mines Limited (TGB) is viewed positively due to its strong asset base and growth potential, particularly from the Florence in-situ copper project, which is expected to significantly enhance the company's EBITDA and production capacity [1][5]. Company Overview - Taseko Mines is a Canadian-based, US-listed junior copper miner with one producing asset (Gibraltar mine), one near-term project (Florence), and three large-scale greenfield developments [2]. - The Gibraltar mine has a 32-year mine life and produced 106 million pounds of copper in 2024 at a cash cost of $2.30 per pound, with a projected increase to 120 million pounds in 2025 [2]. Florence Project - The Florence project, with buildout costs of $235 million, is expected to produce 85 million pounds annually at a cash cost of $1.11 per pound, placing it in the first quartile of the global cost curve [3]. - The project is anticipated to begin ramping up in Q4 2025 and contribute approximately $325 million in EBITDA, in addition to Gibraltar's $250 million [3]. Long-term Growth Potential - Taseko has three greenfield projects in British Columbia: New Prosperity, Yellowhead, and Aley, with Yellowhead prioritized for development due to its superior economics [4]. - By 2027, TGB's projected copper production of 88,000 tons is valued at $12,841 per ton, significantly lower than peers, suggesting a potential for a 50%+ upside in stock valuation if copper prices rise [4].

Taseko Mines (TGB) 2025 Conference Summary Company Overview - Taseko Mines is a Canadian-based copper mining company focused on North America, currently operating the Gibraltar mine in British Columbia and developing the Florence Copper Project in Arizona [3][4][6] - The company has a total of 15 billion pounds of proven and probable copper reserves [6] Key Projects Gibraltar Mine - The Gibraltar mine has been operational for 20 years, producing approximately 120 million to 130 million pounds of copper annually [7][14] - Recent challenges included mining lower-grade ore, but improvements are expected as the company moves to higher-quality ore [13][14] - The mine has a life expectancy of 20 years with no major capital expenditures anticipated in the near term [15][16] Florence Copper Project - The Florence project is a unique in-situ copper recovery operation, expected to start production soon [18][19] - The project is 95% complete, with first copper production anticipated by December 2025 [24][25] - The expected production cost is around $1.11 per pound, positioning it in the first quartile of production costs [23] - The project is designed to produce refined copper, addressing the U.S. market's need for domestic refined copper [11][12] Future Development Projects - **Yellowhead Project**: A greenfield project with a 25-year mine life, expected to produce over 200 million pounds of copper annually at a cash cost below $2 per pound [30][31] - **New Prosperity Project**: A large undeveloped copper-gold porphyry resource with significant historical permitting challenges, but recent agreements with local indigenous nations may pave the way for future development [32][33][57] Market Position and Growth Potential - Taseko believes it is undervalued in the market, particularly regarding its development assets like Florence [8][39] - The company is well-positioned to benefit from increasing copper demand driven by electrification and AI-related infrastructure growth [10][11] Financial Strategy - Taseko aims to reduce its debt from $500 million to around $400 million over the next few years, targeting a debt-to-EBITDA ratio below one [60][61] - The company is considering share buybacks and potential dividends as cash flow increases from Florence and Gibraltar [38][39] Community Engagement and Permitting - Successful community engagement is critical for project advancement, as demonstrated by the turnaround in local support for the Florence project [66][68] - Ongoing efforts are being made to build relationships with local communities for the Yellowhead and New Prosperity projects [69][70] Conclusion - Taseko Mines is positioned for significant growth with its current and future projects, particularly with the Florence Copper Project nearing production and the potential for further development in Yellowhead and New Prosperity [6][8][30] - The company emphasizes the importance of community acceptance and prudent financial management to unlock shareholder value [70][71]

Core Viewpoint - Taseko Mines Limited will participate in the Jefferies 2025 Industrials Conference on September 3-4, 2025, in New York City, with a presentation by President & CEO Stuart McDonald scheduled for September 4 at 2:50 PM ET [1][2]. Company Information - Taseko Mines Limited is listed on multiple exchanges: TSX (TKO), NYSE American (TGB), and LSE (TKO) [1]. - The company encourages investors to access the webcast of the presentation through its website [2]. Presentation Details - The presentation by Stuart McDonald will be available via a webcast, which can be accessed in the Events section of Taseko's investor relations website [2].

Financial Data and Key Metrics Changes - Sales in Q2 totaled CAD 19 million at an average realized price of CAD 4.32 per pound, generating revenue of CAD 116 million, impacted by lower sales and a stronger Canadian dollar [21][22] - Net income for the quarter was CAD 22 million or CAD 0.07 per share, primarily driven by unrealized foreign exchange gains [21] - Adjusted earnings showed a net loss of CAD 13 million or CAD 0.04 loss per share [21] - Total cash costs (C1) reported at CAD 3.14 per pound in Q2, higher than the previous quarter due to lower capitalized stripping and lower molybdenum production [22][24] Business Line Data and Key Metrics Changes - Mining rates at Gibraltar increased significantly in Q2, with mine tonnages reaching 30 million tonnes, a 31% increase from Q1, marking the best mining quarter in four years [7] - Copper production remained stable at 20 million pounds, with copper grades at 0.2% and recoveries at 63% [8] - Construction costs for the Florence project totaled CAD 33 million in Q2, with total incurred costs reaching CAD 239 million, tracking towards a revised estimate of CAD 265 million [25] Market Data and Key Metrics Changes - The copper market has experienced volatility due to recent tariff announcements, but the LME copper price remains stable and strong [14] - The U.S. market is incentivizing domestic manufacturing of finished copper products, which is favorable for the Florence project [14] Company Strategy and Development Direction - The company is focused on advancing the Florence project, which is over 90% complete, with initial injection of solutions targeted for September [12] - The New Prosperity agreement allows for future mine development with the consent of the Silkotene Nation, providing a pathway for significant value realization from this asset [16][17] - The Yellowhead project has shown improved economics, with an NPV of CAD 2 billion at a copper price of CAD 4.25 per pound [18] Management's Comments on Operating Environment and Future Outlook - Management expects a strong rebound in production in Q3 and even better in Q4, with higher quality ore being accessed [7][30] - The company is actively looking to extend price protection into 2026 to cover the ramp-up of Florence [26] - Management is optimistic about the recovery of grades and recoveries at Gibraltar, projecting improvements in Q3 and Q4 [29][30] Other Important Information - The SXEW plant experienced a transformer issue, leading to an expected downtime of six to eight weeks, impacting less than 1 million pounds of production [9][10] - The company ended the quarter with a cash balance of CAD 122 million, maintaining liquidity of just under CAD 200 million [25] Q&A Session Summary Question: Commentary on grades and recoveries for Q3 at Gibraltar - Management expects both grade and recovery to improve significantly in Q3, returning to or exceeding reserve grade averages [29][30] Question: Risk of higher oxide material affecting recoveries - Management is confident in projections, noting a transition in oxidation and the expectation of higher grade ore in the coming months [31] Question: Production targets for Florence - The technical report indicates a target of around 40 million pounds for the first year of production [32] Question: Current pricing for sulfuric acid - Sulfuric acid prices are currently in the low CAD 200 range, with secured supply from two different suppliers [34] Question: Capitalized stripping expectations for Q3 - Remaining capital spend at Florence will be weighted to Q3, with minimal capital required in Q4 [38] Question: Production impact from SXEW plant downtime - The SXEW plant is expected to produce 3 to 4 million pounds annually, with a slight increase in production expected next year [40]

Condensed Consolidated Interim Financial Statements Overview This section provides an overview of Taseko Mines Limited's interim financial position, performance, cash flows, and equity changes, along with detailed notes on accounting policies and specific financial items [Condensed Consolidated Interim Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) The balance sheet shows a decrease in current assets and an increase in total assets for Taseko Mines Limited as of June 30, 2025, compared to December 31, 2024. Total liabilities also increased, while total equity saw a significant rise Key Balance Sheet Figures (Cdn$ in thousands) | Metric | June 30, 2025 (Cdn$ '000) | December 31, 2024 (Cdn$ '000) | | :-------------------------------- | :------------ | :---------------- | | Cash | 121,988 | 172,732 | | Current assets | 235,326 | 353,239 | | Property, plant and equipment | 1,954,246 | 1,770,102 | | Total Assets | 2,262,759 | 2,195,043 | | Current liabilities | 230,719 | 206,836 | | Total Liabilities | 1,702,824 | 1,691,821 | | Total Equity | 559,935 | 503,222 | - Current assets decreased by **Cdn$117.9 million (33.4%)** from December 31, 2024, to June 30, 2025, primarily due to a reduction in cash and inventories[2](index=2&type=chunk) - Total equity increased by **Cdn$56.7 million (11.3%)** from December 31, 2024, to June 30, 2025, driven by share capital increases and a reduction in deficit[2](index=2&type=chunk) [Condensed Consolidated Interim Statements of Comprehensive (Loss) Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Comprehensive%20(Loss)%20Income) The company reported a net income for the three months ended June 30, 2025, reversing a loss from the prior year, but a net loss for the six months ended June 30, 2025, compared to a net income in the prior year. Revenues decreased across both periods, while earnings from mining operations saw a significant decline Key Income Statement Figures (Cdn$ in thousands) | Metric | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenues | 116,082 | 137,730 | 255,231 | 284,677 | | Earnings (loss) from mining operations | (502) | 44,948 | 15,864 | 69,367 | | Net (loss) income | 21,868 | (10,953) | (6,692) | 7,943 | | Basic (loss) earnings per share | 0.07 | (0.04) | (0.02) | 0.03 | | Diluted (loss) earnings per share | 0.07 | (0.04) | (0.02) | 0.03 | - Revenues decreased by **15.8%** for the three months ended June 30, 2025, and by **10.3%** for the six months ended June 30, 2025, compared to the same periods in 2024[3](index=3&type=chunk) - Net income for the three months ended June 30, 2025, was **Cdn$21.9 million**, a significant improvement from a **Cdn$11.0 million loss** in the prior year, primarily driven by a **Cdn$39.1 million foreign exchange gain**[3](index=3&type=chunk) [Condensed Consolidated Interim Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Cash provided by operating activities decreased for both the three and six months ended June 30, 2025, compared to 2024. Investing activities continued to be a significant cash outflow, increasing substantially, while financing activities provided cash, though less than the prior year for the six-month period Key Cash Flow Figures (Cdn$ in thousands) | Metric | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cash provided by operating activities | 25,954 | 34,711 | 81,846 | 94,285 | | Cash used for investing activities | (127,330) | (80,801) | (258,258) | (127,486) | | Cash provided by financing activities | 104,783 | 87,011 | 126,275 | 135,511 | | (Decrease) increase in cash | 1,210 | 40,966 | (50,744) | 102,150 | | Cash, end of period | 121,988 | 198,627 | 121,988 | 198,627 | - Cash used for investing activities more than doubled for the six months ended June 30, 2025, reaching **Cdn$258.3 million**, primarily due to increased Florence Copper development costs and Gibraltar capital expenditures[4](index=4&type=chunk) - The company experienced a **Cdn$50.7 million decrease in cash** for the six months ended June 30, 2025, contrasting with a **Cdn$102.2 million increase** in the same period of 2024[4](index=4&type=chunk) [Condensed Consolidated Interim Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity increased from December 31, 2024, to June 30, 2025, driven by share issuances and share-based compensation, partially offset by a total comprehensive loss for the period Key Equity Changes (Cdn$ in thousands) | Metric | As at December 31, 2024 (Cdn$ '000) | As at June 30, 2025 (Cdn$ '000) | | :----------------------------------- | :---------------------- | :------------------ | | Share capital | 529,413 | 562,446 | | Contributed surplus | 57,786 | 60,153 | | Accumulated other comprehensive income | 52,845 | 21,357 | | Deficit | (136,822) | (84,022) | | Total Equity | 503,222 | 559,935 | - Share capital increased by **Cdn$33.0 million** from share issuances and exercise of options during the six months ended June 30, 2025[5](index=5&type=chunk) - The deficit decreased by **Cdn$52.8 million**, largely due to the sale of a non-controlling interest in the New Prosperity Project, which resulted in a **Cdn$68.8 million gain** recognized directly in equity[5](index=5&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements [1. REPORTING ENTITY](index=7&type=section&id=1.%20REPORTING%20ENTITY) Taseko Mines Limited is a British Columbia-governed corporation primarily engaged in metal concentrate production and mine development in British Columbia, Canada, and Arizona, USA. The company's interest in Gibraltar mine increased to 100% after March 25, 2024, following the acquisition of Cariboo Copper Corporation - Taseko Mines Limited is principally engaged in the production and sale of metal concentrates, as well as related activities, including mine permitting and development, within British Columbia, Canada, and Arizona, USA[6](index=6&type=chunk) - The company's interest in Gibraltar mine increased from **87.5% to 100%** after March 25, 2024, due to the acquisition of Cariboo Copper Corporation[7](index=7&type=chunk) [2. MATERIAL ACCOUNTING POLICIES](index=7&type=section&id=2.%20MATERIAL%20ACCOUNTING%20POLICIES) The interim financial statements comply with IFRS Accounting Standards. Management's judgments and estimates remain consistent with the prior annual statements, except for the partial disposal of the New Prosperity Project, where control was retained. New IFRS standards, including IFRS 18 and amendments to IFRS 9 and IFRS 7, are being evaluated for their impact - The unaudited condensed consolidated interim financial statements are prepared in compliance with **IFRS Accounting Standards under IAS 34**[8](index=8&type=chunk) - The company retained control of 1280860 (New Prosperity Project) after disposing of **22.5%** of its common shares, as it maintains the ability to direct activities significantly affecting economic returns[13](index=13&type=chunk) - The company is evaluating the impact of new accounting standards, including **IFRS 18** (effective January 1, 2027) and amendments to **IFRS 9 and IFRS 7** (effective January 1, 2026)[14](index=14&type=chunk)[15](index=15&type=chunk) [3. REVENUES](index=9&type=section&id=3.%20REVENUES) Total revenues decreased for both the three and six months ended June 30, 2025, compared to 2024, primarily driven by lower copper contained in concentrate revenue, partially offset by an increase in gold revenue Revenue Breakdown (Cdn$ in thousands) | Revenue Source | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Copper contained in concentrate | 110,539 | 128,639 | 239,322 | 268,191 | | Molybdenum concentrate | 4,546 | 5,672 | 14,313 | 11,196 | | Silver | 755 | 815 | 2,496 | 2,542 | | Gold | 351 | - | 740 | - | | Total Revenues | 116,082 | 137,730 | 255,231 | 284,677 | - Copper contained in concentrate revenue decreased by **Cdn$18.1 million (14.1%)** for the three months and **Cdn$28.9 million (10.8%)** for the six months ended June 30, 2025, compared to the prior year[17](index=17&type=chunk) - Gold revenue, which was zero in 2024, contributed **Cdn$351 thousand** and **Cdn$740 thousand** for the three and six months ended June 30, 2025, respectively[17](index=17&type=chunk) [4. COST OF SALES AND OTHER OPERATING (INCOME) COSTS](index=9&type=section&id=4.%20COST%20OF%20SALES%20AND%20OTHER%20OPERATING%20(INCOME)%20COSTS) Cost of sales increased for both the three and six months ended June 30, 2025, primarily due to higher depletion and amortization. Other operating income included a significant research and development tax credit in 2025, contrasting with crusher relocation costs and an insurance recovery in 2024 Cost of Sales and Other Operating (Income) Costs (Cdn$ in thousands) | Metric | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Production costs | 95,382 | 94,916 | 195,740 | 202,420 | | Depletion and amortization | 25,210 | 13,721 | 47,635 | 28,745 | | Cost of sales | 120,592 | 108,637 | 243,375 | 231,165 | | Other operating (income) costs | (4,008) | 10,435 | (4,008) | 10,435 | | Insurance recovery | - | (26,290) | - | (26,290) | - Depletion and amortization expense increased by **83.7%** for the three months and **65.7%** for the six months ended June 30, 2025, compared to the same periods in 2024[18](index=18&type=chunk) - The company recognized **Cdn$4.0 million** in research and development tax credits as other operating income during the three and six months ended June 30, 2025[19](index=19&type=chunk)[20](index=20&type=chunk) - In 2024, the company recognized a **Cdn$26.3 million insurance recovery** related to business interruption and **Cdn$7.9 million in crusher relocation costs**[22](index=22&type=chunk)[20](index=20&type=chunk) [5. DERIVATIVES AND OTHER FAIR VALUE INSTRUMENTS](index=10&type=section&id=5.%20DERIVATIVES%20AND%20OTHER%20FAIR%20VALUE%20INSTRUMENTS) The company incurred higher net losses from derivatives and other fair value instruments for the six months ended June 30, 2025, primarily due to increased unrealized losses on outstanding copper options and collars and fair value adjustments on the Florence copper stream derivative Changes in Derivatives and Other Fair Value Instruments (Cdn$ in thousands) | Metric | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :--------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss on copper price and fuel contracts | 2,433 | 10,465 | 25,552 | 13,094 | | Fair value adjustment on Cariboo contingent payments | 5,136 | - | 1,826 | - | | Fair value adjustment on Florence copper stream derivative | 3,486 | 1,223 | 8,766 | 3,815 | | Total Changes in derivatives and other fair value instruments | 11,055 | 11,688 | 36,144 | 16,909 | - Unrealized loss on outstanding copper options and collars significantly increased to **Cdn$22.7 million** for the six months ended June 30, 2025, from **Cdn$9.7 million** in the prior year[23](index=23&type=chunk) - The Florence Copper Stream, a financial liability measured at fair value, was valued at **Cdn$86.4 million** as of June 30, 2025, with a **Cdn$8.8 million fair value adjustment** recognized during the six-month period[29](index=29&type=chunk)[30](index=30&type=chunk) [a) Derivatives and other Financial Instruments measured at fair value](index=10&type=section&id=a)%20Derivatives%20and%20other%20Financial%20Instruments%20measured%20at%20fair%20value) This section details the fair value measurements and changes in derivative and other financial instruments Fair Value Gains/Losses (Cdn$ in thousands) | Item | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :--------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Realized loss on settled copper options and collars | 1,285 | 1,556 | 2,571 | 3,192 | | Unrealized loss on outstanding copper options and collars | 1,084 | 8,874 | 22,662 | 9,737 | | Realized loss on fuel call options | 281 | 99 | 548 | 165 | | Unrealized gain fuel call options | (217) | (64) | (229) | - | | Net loss on copper price and fuel contracts | 2,433 | 10,465 | 25,552 | 13,094 | | Fair value adjustment on Cariboo contingent performance payments | 5,136 | - | 1,826 | - | | Fair value adjustment on Florence copper stream derivative | 3,486 | 1,223 | 8,766 | 3,815 | | Changes in derivatives and other fair value instruments | 11,055 | 11,688 | 36,144 | 16,909 | [b) Copper Collars and Fuel Contracts](index=10&type=section&id=b)%20Copper%20Collars%20and%20Fuel%20Contracts) This section outlines the company's outstanding copper collars and fuel contracts, including their quantities, strike prices, and fair values - No new derivative transactions were entered into by the Company during the six months ended June 30, 2025[24](index=24&type=chunk) Outstanding Copper Collars as at June 30, 2025 | Quantity | Strike price | Period | Cost (Cdn$ '000) | Fair value (Cdn$ '000) | | :----------- | :------------------ | :------- | :----- | :--------- | | 54 million lbs | US$4.00 per lb | H2 2025 | 2,222 | 1,334 | | | US$5.40 per lb | | | | [c) Florence Copper Stream](index=11&type=section&id=c)%20Florence%20Copper%20Stream) This section details the Florence Copper Stream agreement, including received installments, valuation, and continuity of the financial liability - The Company received the final **US$10 million** installment of the **US$50 million** Copper Stream from Mitsui on January 27, 2025, for the Florence Copper project[26](index=26&type=chunk) - The Florence Copper Stream and Buy Back Option were valued at **Cdn$86.4 million** as at June 30, 2025, based on estimates of future production and copper prices[29](index=29&type=chunk) Florence Copper Stream Continuity (Cdn$ in thousands) | Item | Amount (Cdn$ '000) | | :-------------------------------------- | :----- | | Florence Copper Stream as at December 31, 2024 | 67,813 | | Advance from Florence Copper Stream (US$10 million) | 14,381 | | Fair value adjustment | 8,766 | | Foreign exchange translation | (4,516) | | Florence Copper Stream as at June 30, 2025 | 86,444 | | Less current portion | 3,349 | | Long-term portion as at June 30, 2025 | 83,095 | [6. FINANCE AND ACCRETION EXPENSE](index=12&type=section&id=6.%20FINANCE%20AND%20ACCRETION%20EXPENSE) Finance expense decreased for the three months but increased for the six months ended June 30, 2025, primarily due to changes in interest expense and capitalized interest. Accretion expense saw a slight increase for both periods Finance and Accretion Expense (Cdn$ in thousands) | Expense Type | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Finance expense | 10,228 | 12,880 | 22,435 | 25,692 | | Accretion expense | 13,715 | 13,037 | 20,385 | 20,074 | - Interest expense capitalized for the Florence Copper project increased to **Cdn$13.3 million** for the six months ended June 30, 2025, from **Cdn$8.7 million** in the prior year[31](index=31&type=chunk) - Accretion on Florence royalty obligation significantly increased to **Cdn$8.8 million** for the six months ended June 30, 2025, from **Cdn$5.5 million** in the prior year[31](index=31&type=chunk) [7. INCOME TAX](index=12&type=section&id=7.%20INCOME%20TAX) The company recognized a significant income tax recovery for both the three and six months ended June 30, 2025, primarily due to a deferred income tax recovery related to the utilization of previously unrecognized net capital losses Income Tax (Recovery) Expense (Cdn$ in thousands) | Tax Type | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Current income tax (recovery) expense | (1,243) | 633 | (1,243) | 1,438 | | Deferred income tax (recovery) expense | (26,196) | (3,880) | (34,176) | 18,597 | | Income tax (recovery) expense | (27,439) | (3,247) | (35,419) | 20,035 | - The **Cdn$26.2 million deferred income tax recovery** for the three months ended June 30, 2025, includes **Cdn$9.3 million** related to the recognition of previously unrecognized net capital losses[32](index=32&type=chunk) [8. ACCOUNTS RECEIVABLE](index=13&type=section&id=8.%20ACCOUNTS%20RECEIVABLE) Total accounts receivable increased as of June 30, 2025, compared to December 31, 2024, driven by a significant rise in other receivables Accounts Receivable (Cdn$ in thousands) | Type | June 30, 2025 (Cdn$ '000) | December 31, 2024 (Cdn$ '000) | | :-------------------------- | :------------ | :---------------- | | Trade and settlement receivables | 4,116 | 5,397 | | Other receivables | 2,175 | 246 | | Total Accounts receivable | 6,291 | 5,643 | - Other receivables increased by **Cdn$1.9 million** from December 31, 2024, to June 30, 2025[33](index=33&type=chunk) [9. INVENTORIES](index=13&type=section&id=9.%20INVENTORIES) Current inventories decreased significantly as of June 30, 2025, primarily due to a reduction in sulphide ore stockpiles, while long-term inventories increased with the addition of oxide ore on leach pads Inventories Breakdown (Cdn$ in thousands) | Inventory Type | June 30, 2025 (Cdn$ '000) | December 31, 2024 (Cdn$ '000) | | :-------------------------- | :------------ | :---------------- | | **Current:** | | | | Copper concentrate | 11,634 | 14,932 | | Sulphide ore stockpiles | 17,799 | 76,696 | | Oxide ore on leach pads | 7,274 | - | | Materials and supplies | 55,603 | 46,620 | | Total Current Inventories | 95,664 | 138,890 | | **Long-term:** | | | | Oxide ore on leach pads | 22,488 | - | | Oxide ore stockpiles | 30,286 | 39,586 | | Total Long-term Inventories | 52,774 | 39,586 | - Current sulphide ore stockpiles decreased by **Cdn$58.9 million** from December 31, 2024, to June 30, 2025[34](index=34&type=chunk) - Oxide ore on leach pads appeared as a new inventory category in both current (**Cdn$7.3 million**) and long-term (**Cdn$22.5 million**) inventories as of June 30, 2025[34](index=34&type=chunk) [10. OTHER FINANCIAL ASSETS](index=13&type=section&id=10.%20OTHER%20FINANCIAL%20ASSETS) Current other financial assets decreased significantly as of June 30, 2025, primarily due to a substantial reduction in copper price options, while long-term other financial assets remained stable Other Financial Assets (Cdn$ in thousands) | Asset Type | June 30, 2025 (Cdn$ '000) | December 31, 2024 (Cdn$ '000) | | :-------------------------- | :------------ | :---------------- | | **Current:** | | | | Marketable securities | 1,581 | 895 | | Copper price options | 1,334 | 26,568 | | Fuel call options | - | 332 | | Total Current | 2,915 | 27,795 | | **Long-term:** | | | | Investment in private companies | 500 | 500 | | Reclamation deposits | 459 | 459 | | Total Long-term | 959 | 959 | - Copper price options decreased by **Cdn$25.2 million** from December 31, 2024, to June 30, 2025[35](index=35&type=chunk) [11. PROPERTY, PLANT AND EQUIPMENT](index=14&type=section&id=11.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) The net book value of property, plant and equipment increased as of June 30, 2025, driven by significant additions, particularly in construction in progress and mineral properties. Florence Copper and Gibraltar segments saw substantial net additions Property, Plant and Equipment Net Book Value (Cdn$ in thousands) | Metric | As at December 31, 2024 (Cdn$ '000) | As at June 30, 2025 (Cdn$ '000) | | :----------------------------------- | :---------------------- | :------------------ | | Total Net Book Value | 1,770,102 | 1,954,246 | | Gibraltar Mine | 925,911 | 997,917 | | Florence Copper | 800,935 | 910,972 | | Yellowhead | 25,762 | 27,555 | - Total additions to PPE for the six months ended June 30, 2025, amounted to **Cdn$265.5 million**, with **Cdn$127.9 million** in construction in progress[37](index=37&type=chunk) - The Florence Copper project capitalized **Cdn$142.0 million** in development costs and **Cdn$13.3 million** in borrowing costs for the six months ended June 30, 2025[37](index=37&type=chunk) [12. ACQUISITION OF CARIBOO COPPER CORPORATION](index=15&type=section&id=12.%20ACQUISITION%20OF%20CARIBOO%20COPPER%20CORPORATION) On March 25, 2024, Taseko acquired the remaining 50% interest in Cariboo Copper Corporation, increasing its effective interest in Gibraltar to 100%. This acquisition resulted in a bargain purchase gain of Cdn$47.4 million and a gain of Cdn$15.0 million from the remeasurement of the previously held 87.5% interest in Gibraltar at fair value - The acquisition of **50%** of Cariboo Copper Corporation on March 25, 2024, increased Taseko's effective interest in Gibraltar mine to **100%**[39](index=39&type=chunk) - A bargain purchase gain of **Cdn$47.4 million** was recognized due to the difference between the fair value of net assets acquired (**Cdn$118.5 million**) and the consideration payable (**Cdn$71.1 million**)[41](index=41&type=chunk) - A gain of **Cdn$14.98 million** was recognized from the remeasurement of the previously held **87.5% interest** in Gibraltar at fair value upon gaining control[43](index=43&type=chunk) [13. DEBT](index=16&type=section&id=13.%20DEBT) Total debt increased as of June 30, 2025, primarily due to advances from the revolving credit facility and new lease liabilities, partially offset by principal payments and foreign exchange movements. The company issued US$500 million senior secured notes in April 2024 and maintains various equipment loans and credit facilities Total Debt Breakdown (Cdn$ in thousands) | Debt Type | As at December 31, 2024 (Cdn$ '000) | As at June 30, 2025 (Cdn$ '000) | | :-------------------------- | :---------------------- | :------------------ | | Senior secured notes | 715,646 | 679,040 | | Revolving credit facility | - | 75,036 | | Gibraltar equipment loans | 48,998 | 38,596 | | Florence equipment loans | 29,158 | 29,028 | | Lease liabilities | 13,296 | 19,021 | | Total Debt | 807,098 | 840,721 | | Long-term debt | 764,355 | 794,121 | - The company completed an offering of **US$500 million senior secured notes** in April 2024, maturing on May 1, 2030, with an annual interest rate of **8.25%**[45](index=45&type=chunk) - As of June 30, 2025, **US$55 million** was advanced under the secured **US$110 million revolving credit facility**, which matures on November 2, 2027[48](index=48&type=chunk) [14. CARIBOO CONSIDERATION PAYABLE TO PRIOR OWNERS OF CARIBOO](index=18&type=section&id=14.%20CARIBOO%20CONSIDERATION%20PAYABLE%20TO%20PRIOR%20OWNERS%20OF%20CARIBOO) The total Cariboo consideration payable decreased slightly as of June 30, 2025, due to payments made, partially offset by fair value adjustments and accretion. This liability includes minimum and contingent payments to Sojitz, Dowa, and Furukawa, with contingent payments dependent on LME copper prices Cariboo Consideration Payable (Cdn$ in thousands) | Item | As at December 31, 2024 (Cdn$ '000) | As at June 30, 2025 (Cdn$ '000) | | :----------------------------------- | :---------------------- | :------------------ | | Sojitz | 72,209 | 58,381 | | Dowa and Furukawa | 73,659 | 77,816 | | Total Cariboo consideration payable | 145,868 | 136,197 | | Less current portion | (16,447) | (30,331) | | Long-term portion | 129,421 | 105,866 | - The contingent payment of **Cdn$6.6 million** for the 2024 calendar year to Sojitz was paid on April 1, 2025[59](index=59&type=chunk) - The Dowa and Furukawa Contingent Performance Payments liability is estimated to have **nil value** as at June 30, 2025, and December 31, 2024[61](index=61&type=chunk) [15. FLORENCE ROYALTY OBLIGATION](index=19&type=section&id=15.%20FLORENCE%20ROYALTY%20OBLIGATION) The Florence Royalty Obligation, a perpetual gross revenue royalty interest, increased as of June 30, 2025, due to accretion, partially offset by foreign exchange translation. The company recorded Cdn$8.8 million in accretion expense for the six months ended June 30, 2025 Florence Royalty Obligation (Cdn$ in thousands) | Item | Amount (Cdn$ '000) | | :-------------------------------------- | :----- | | Balance as at December 31, 2024 | 84,383 | | Accretion | 8,772 | | Foreign exchange translation | (4,569) | | Balance as at June 30, 2025 | 88,586 | | Less current portion | 3,428 | | Long-term portion as at June 30, 2025 | 85,158 | - The company received **US$50 million** from Taurus Mining Royalty Fund L.P. on February 2, 2024, for a **2.05% perpetual gross revenue royalty interest** in Florence Copper[64](index=64&type=chunk) - Accretion on the royalty obligation for the six months ended June 30, 2025, was **Cdn$8.8 million**, an increase from **Cdn$5.5 million** in the prior year[65](index=65&type=chunk) [16. DEFERRED REVENUE](index=20&type=section&id=16.%20DEFERRED%20REVENUE) Total deferred revenue increased as of June 30, 2025, primarily due to higher customer advance payments and accretion on the Osisko silver stream agreement, partially offset by revenue recognition Deferred Revenue Breakdown (Cdn$ in thousands) | Item | June 30, 2025 (Cdn$ '000) | December 31, 2024 (Cdn$ '000) | | :----------------------------------- | :------------ | :---------------- | | Current portion of deferred revenue | 15,393 | 13,666 | | Long-term portion of Osisko silver stream agreement | 81,366 | 77,327 | | Total deferred revenue | 96,759 | 90,993 | - Customer advance payments increased to **Cdn$7.4 million** as of June 30, 2025, from **Cdn$4.3 million** at December 31, 2024[68](index=68&type=chunk) - The Osisko silver stream agreement was amended on December 20, 2024, with the company receiving **US$12.7 million** for the sale of an equivalent amount of the remaining **12.5% share** of Gibraltar payable silver production[70](index=70&type=chunk) [17. EQUITY](index=21&type=section&id=17.%20EQUITY) The company completed its At-the-market Equity Offering Program (ATM) during the three months ended March 31, 2025, issuing over 22.6 million shares for total gross proceeds of US$49.976 million (Cdn$69.881 million) - The At-the-market Equity Offering Program (ATM) for up to **US$50 million** was fully subscribed and completed during the three months ended March 31, 2025[73](index=73&type=chunk) ATM Program Issuance Details | Metric | Amount | | :----------------------------------- | :----- | | Total shares issued under ATM | 22,627,320 | | Total gross proceeds (US$) | 49,976 | | Total gross proceeds (Cdn$) | 69,881 | | Shares issued during Q1 2025 | 10,566,354 | | Gross proceeds during Q1 2025 (US$) | 21,519 | | Gross proceeds during Q1 2025 (Cdn$) | 30,994 | [18. PARTIAL DISPOSAL OF NEW PROSPERITY PROJECT](index=21&type=section&id=18.%20PARTIAL%20DISPOSAL%20OF%20NEW%20PROSPERITY%20PROJECT) On June 5, 2025, the company transferred 22.5% of its New Prosperity Project to the Tsilhqot'in Nation in exchange for Cdn$75 million in cash. The company retained control of the entity, and the transaction was accounted for as an equity transaction, resulting in a net realized gain of Cdn$68.8 million recognized directly in equity - On June 5, 2025, the company transferred **22.5%** of the common shares of the entity owning the New Prosperity Project to the Tsilhqot'in Nation, receiving **Cdn$75 million in cash**[75](index=75&type=chunk) - The company retained a **77.5% shareholder interest** and concluded it continues to control the entity, leading to the transaction being accounted for as an equity transaction with no gain or loss recognized in the statement of comprehensive (loss) income[77](index=77&type=chunk) - The transaction resulted in a **net realized gain of Cdn$68.8 million** recognized directly in equity[78](index=78&type=chunk) [19. SHARE-BASED COMPENSATION](index=22&type=section&id=19.%20SHARE-BASED%20COMPENSATION) Share-based compensation expense increased for both the three and six months ended June 30, 2025, primarily driven by a significant change in the fair value of deferred share units. The company granted new share options and various share units during the period Share-based Compensation Expense (Cdn$ in thousands) | Expense Type | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Share options expense | 703 | 565 | 3,078 | 2,103 | | Performance share units expense | 778 | 679 | 1,556 | 1,357 | | Restricted share units expense | 231 | 143 | 481 | 294 | | Change in fair value of deferred share units | 3,099 | 1,198 | 5,046 | 4,498 | | Total Share-based compensation expense | 4,740 | 2,512 | 9,744 | 7,952 | - Share-based compensation expense increased by **88.7%** for the three months and **22.5%** for the six months ended June 30, 2025, compared to the same periods in 2024[83](index=83&type=chunk) - The company granted **2,813,300 share options** during the six months ended June 30, 2025, with an average exercise price of **Cdn$3.06 per share**[79](index=79&type=chunk) [20. (LOSS) EARNINGS PER SHARE](index=23&type=section&id=20.%20(LOSS)%20EARNINGS%20PER%20SHARE) Basic and diluted earnings per share showed a positive Cdn$0.07 for the three months ended June 30, 2025, reversing a loss from the prior year, but a loss of Cdn$0.02 for the six-month period, compared to a gain in 2024 (Loss) Earnings Per Share (Cdn$) | Metric | 3 Months Ended June 30, 2025 (Cdn$) | 3 Months Ended June 30, 2024 (Cdn$) | 6 Months Ended June 30, 2025 (Cdn$) | 6 Months Ended June 30, 2024 (Cdn$) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic (loss) earnings per share | 0.07 | (0.04) | (0.02) | 0.03 | | Diluted (loss) earnings per share | 0.07 | (0.04) | (0.02) | 0.03 | | Weighted-average number of common shares (thousands) | 315,992 | 291,832 | 313,224 | 291,148 | - Weighted-average common shares outstanding increased by **8.3%** for the three months and **7.6%** for the six months ended June 30, 2025, compared to the prior year[84](index=84&type=chunk) [21. COMMITMENTS AND CONTINGENCIES](index=24&type=section&id=21.%20COMMITMENTS%20AND%20CONTINGENCIES) The company has total commitments of Cdn$21.3 million for service and supply agreements as of June 30, 2025. Capital expenditure commitments for Florence Copper and Gibraltar decreased significantly. Surety bonds for reclamation obligations increased for Gibraltar Future Minimum Payments (Cdn$ in thousands) | Period | Amount (Cdn$ '000) | | :---------------- | :----- | | Remainder of 2025 | 8,141 | | 2026 | 11,491 | | 2027 | 1,671 | | Total commitments | 21,303 | - Capital expenditure commitments for Florence Copper decreased from **Cdn$47.9 million** at December 31, 2024, to **Cdn$10.8 million** at June 30, 2025[85](index=85&type=chunk) - Surety bonds for Gibraltar's reclamation obligations increased to **Cdn$124.2 million** as of June 30, 2025, from **Cdn$108.5 million** at December 31, 2024[86](index=86&type=chunk) [22. SUPPLEMENTARY CASH FLOW INFORMATION](index=25&type=section&id=22.%20SUPPLEMENTARY%20CASH%20FLOW%20INFORMATION) Changes in non-cash working capital items provided Cdn$35.7 million in cash for the six months ended June 30, 2025, a significant increase from the prior year. Non-cash investing and financing activities included Cdn$14.1 million in right-of-use assets Change in Non-Cash Working Capital Items (Cdn$ in thousands) | Item | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Accounts receivable | 754 | 6,901 | (646) | 8,693 | | Inventories | (3,347) | (3,985) | 20,068 | 4,690 | | Accounts payable and accrued liabilities | 15,638 | 105 | 14,163 | (1,841) | | Total Change in non-cash working capital items | 10,125 | 776 | 35,658 | 10,495 | - Non-cash investing and financing activities for the six months ended June 30, 2025, included **Cdn$14.1 million** in right-of-use assets[90](index=90&type=chunk) [23. FAIR VALUE MEASUREMENTS](index=25&type=section&id=23.%20FAIR%20VALUE%20MEASUREMENTS) The company classifies its financial assets and liabilities into a three-level fair value hierarchy. Senior secured notes are Level 1, while Cariboo contingent performance payables and Florence Copper Stream are Level 3 due to unobservable inputs - The fair value of senior secured notes, a Level 1 measurement, was **Cdn$714.5 million** as at June 30, 2025, compared to a face value of **Cdn$682.2 million**[93](index=93&type=chunk) Fair Value Hierarchy of Financial Instruments (Cdn$ in thousands) | Item | Level 1 (Cdn$ '000) | Level 2 (Cdn$ '000) | Level 3 (Cdn$ '000) | Total (Cdn$ '000) | | :--------------------------------------------------- | :------ | :------ | :-------- | :------ | | **June 30, 2025** | | | | | | Derivative asset copper put and call options | - | 1,334 | - | 1,334 | | Cariboo contingent performance payable | - | - | (31,544) | (31,544) | | Florence Copper Stream and buy back option | - | - | (86,444) | (86,444) | | Marketable securities | 1,581 | - | - | 1,581 | | Investment in private companies | - | - | 500 | 500 | | **December 31, 2024** | | | | | | Derivative asset copper put and call options | - | 26,568 | - | 26,568 | | Cariboo contingent performance payable | - | - | (36,363) | (36,363) | | Florence Copper Stream and buy back option | - | - | (67,813) | (67,813) | - Cariboo contingent performance payables and the Florence Copper Stream and buy back option are classified as **Level 3 instruments** due to the use of unobservable market data in their valuation[96](index=96&type=chunk) [24. SEGMENTED INFORMATION](index=27&type=section&id=24.%20SEGMENTED%20INFORMATION) The company operates through three reportable segments: Gibraltar, Florence Copper, and Yellowhead, with corporate activities reconciled separately. Gibraltar is the primary revenue-generating segment, while Florence Copper is in development. For the six months ended June 30, 2025, Gibraltar reported earnings from mining operations, while Florence Copper reported a loss Earnings (Loss) from Mining Operations by Segment (Cdn$ in thousands) | Segment | 3 Months Ended June 30, 2025 (Cdn$ '000) | 3 Months Ended June 30, 2024 (Cdn$ '000) | 6 Months Ended June 30, 2025 (Cdn$ '000) | 6 Months Ended June 30, 2024 (Cdn$ '000) | | :---------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Gibraltar | (397) | 44,948 | 16,071 | 69,367 | | Florence Copper | (105) | - | (207) | - | | Total | (502) | 44,948 | 15,864 | 69,367 | Total Assets by Segment (Cdn$ in thousands) | Segment | As at June 30, 2025 (Cdn$ '000) | As at December 31, 2024 (Cdn$ '000) | | :---------------- | :------------------ | :---------------------- | | Gibraltar | 1,189,226 | 1,182,605 | | Florence Copper | 856,021 | 828,422 | | Yellowhead | 28,144 | 26,024 | | Corporate | 189,368 | 157,992 | | Total Assets | 2,262,759 | 2,195,043 | - Gibraltar's earnings from mining operations decreased significantly from **Cdn$69.4 million** in the first six months of 2024 to **Cdn$16.1 million** in the same period of 2025[98](index=98&type=chunk)[99](index=99&type=chunk)