Taseko(TGB) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2022, the company generated adjusted EBITDA of $35 million, with a total of $110 million for the full year, showing a slight improvement over Q3 [28] - The company reported a GAAP net loss of $26 million or $0.09 per share for 2022, while adjusted net earnings were $2 million or an indiscernible amount per share [42] - Cash flow from operating activities for the year was $81 million, with nominal cash flow in Q4 impacted by working capital adjustments totaling $32 million [20][28] Business Line Data and Key Metrics Changes - Copper sales for Q4 were 26 million pounds at an average realized price of $3.66 per pound, while for the year, sales totaled 101 million pounds at an average price of $3.96 per pound [15] - C1 costs per pound increased from $1.90 to $2.98 due to lower production and capitalized mining costs [18] - The company expects copper production in 2023 to improve to 115 million pounds, plus or minus 5% [9] Market Data and Key Metrics Changes - The average copper price in Q4 was about $3.65 per pound, ending the year at $3.80 per pound, with current prices around $4 [6] - Molybdenum prices have risen to approximately $37 per pound, doubling from a year ago, contributing about $0.40 per pound in Q4 [6] Company Strategy and Development Direction - The company is optimistic about copper prices and has a price protection strategy in place with a floor price of $3.75 for most of Gibraltar's production through the end of the year [13] - A strategic partnership with Mitsui for the Florence project includes an initial investment of USD 50 million, with the option for an additional USD 50 million [32] - The company is advancing into an EA process at Yellowhead and is focused on community engagement [14] Management's Comments on Operating Environment and Future Outlook - Management noted that 2022 was a challenging year, but they are now better positioned with improved mining operations deeper into the Gibraltar pit [29] - The company expects to benefit from higher grades and improved milling opportunities in 2023 [30] - Management highlighted the importance of maintaining liquidity, with CAD 190 million available for funding development projects [34] Other Important Information - The company spent a total of $42 million on capital programs in Q4, with $29 million allocated to Florence [53] - The company has initiated a study for niobium oxide production at the Aley Niobium Project, targeting the growing market for niobium-based battery materials [14] Q&A Session Summary Question: Will the Sojitz transaction trigger any change to the accounting? - Management expects to continue using proportionate consolidation as they will only require 50% of Cariboo, thus not gaining control [46] Question: Can you provide insights on total capital, including stripping and sustaining costs at Gibraltar? - Management indicated that sustaining capital will be similar to last year, with capitalized stripping expected to be higher, around $0.15 to $0.20 per pound [59] Question: Was the CAD 100 million spent on Florence last year actual expenditure or just orders placed? - Management confirmed that the CAD 100 million was the total spend for the year, primarily for equipment [50]