Taseko(US:TGB)2024-11-07 01:20Financial Performance - Taseko Mines reported revenues of CAD 155.6 million for the three months ended September 30, 2024, an increase of 8.2% from CAD 143.8 million in the same period last year [7]. - Adjusted net income for the quarter was CAD 8.2 million, down from CAD 19.7 million in Q3 2023, representing a decline of 58.3% [7]. - Net loss for Q3 2024 was Cdn$0.2 million compared to net income of Cdn$0.9 million in Q3 2023, reflecting significant costs related to financing arrangements and relocation expenses [68]. - Total gross revenue for Q3 2024 increased by Cdn$6.6 million to Cdn$157.2 million, driven by higher copper prices and increased ownership in Gibraltar [73]. - Adjusted net income for the nine months ended September 30, 2024, was Cdn$46.5 million ($0.16 per share), compared to Cdn$20.4 million ($0.07 per share) for the same period in 2023 [69]. - Molybdenum revenues for Q3 2024 decreased by Cdn$0.2 million due to lower average prices, despite the impact of increased ownership in Gibraltar [77]. - The company reported a net loss of Cdn$(180) thousand in Q3 2024, a significant improvement from a net loss of Cdn$(10,953) thousand in Q2 2024 [142]. Production and Operations - The company produced 27.1 million pounds of copper in Q3 2024, a decrease of 23.5% compared to 35.4 million pounds in Q3 2023 [7]. - Molybdenum production increased by 128% quarter-over-quarter to 421 thousand pounds, with an average price of $21.77 per pound, generating a by-product credit of $0.25 per pound of copper produced [26]. - Copper production for the year is now expected to be in the range of 105 to 110 million pounds, down from the original guidance of 115 million pounds [29]. - For 2025, total copper production is expected to improve to between 120 and 130 million pounds, with molybdenum production forecasted to increase due to higher grades in the Connector pit [31]. - Total copper produced in Q3 2024 was 27,101 thousand pounds, an increase from 20,225 thousand pounds in Q2 2024 [164]. - Tons milled in Q3 2024 were 7,572,000, an increase from 5,728,000 in Q2 2024, indicating a growth of 32% [189]. Costs and Expenses - Total operating costs (C1) for copper production were USD 2.92 per pound, slightly lower than USD 2.99 per pound in the previous quarter [14]. - Site operating costs for Q3 2024 rose by Cdn$20.6 million compared to Q3 2023, mainly due to increased mining rates and higher labor costs [83]. - Total site costs at Gibraltar were $111.3 million, including capitalized stripping of $3.6 million, higher than the previous quarter due to care and maintenance during a labor strike [24]. - Site operating costs per ton milled increased to Cdn$14.23 in Q3 2024 from Cdn$12.39 in Q3 2023, representing a rise of 15% [189]. - Total operating costs per pound produced in Q3 2024 were Cdn$3.63, compared to Cdn$3.59 in Q2 2024 [164]. Cash Flow and Liquidity - Cash flow from operations was CAD 65.0 million, significantly higher than CAD 27.0 million in the previous year, reflecting an increase of CAD 38.0 million [11]. - Cash and equivalents increased by $112.3 million to $208.8 million as of September 30, 2024, compared to December 31, 2023 [109]. - The company has approximately $317.0 million of available liquidity, including a cash balance of $208.8 million and an undrawn $80 million revolving credit facility [123]. - Cash flow from operations for the nine months ended September 30, 2024, was $159.3 million, compared to $88.3 million in the prior period, attributed to higher copper sales volumes [117]. Project Developments - The Florence Copper project is progressing on schedule, with 34 out of 90 production wells completed as of September 30, 2024 [15]. - An application for a tax credit of up to USD 110 million has been submitted to the U.S. Department of Energy for the Florence Copper project [15]. - Construction costs for the Florence project in Q3 2024 were $42.4 million, with total expenditures for the project reaching $139.8 million for the nine months ended September 30, 2024 [39]. - The Florence Copper project has a net present value of $930 million at a copper price of $3.75 per pound, with an internal rate of return of 47% and a payback period of 2.6 years [37]. Acquisitions and Ownership Changes - The company increased its ownership in the Gibraltar mine from 87.5% to 100% effective March 25, 2024, impacting financial results for the reporting period [7]. - The company completed the acquisition of the remaining 50% of Cariboo from Dowa and Furukawa for a minimum of $117 million, with payments dependent on copper prices and cash flow [136]. - The company recognized a bargain purchase gain of $47.4 million on the acquisition of the remaining 50% of Cariboo, completed on March 25, 2024 [95]. - The gain of $15.0 million on the acquisition of control of Gibraltar reflects the difference in the fair value of the assets acquired and liabilities assumed [96]. Market Conditions - Copper prices are currently around $4.35 per pound, with expectations of tight supply conditions continuing into 2025 due to limited new primary copper supply [57]. - The average realized copper price for Q3 2024 was US$4.23 per pound, up from US$3.83 per pound in Q3 2023 [73]. - The company has secured a minimum copper price of $3.75 per pound for 21 million pounds covering Q4 2024 and $4.00 per pound for 108 million pounds in 2025 through copper collar contracts [33].