This release should be read with the Company’s Financial Statements and Management Discussion & Analysis ("MD&A"), available at www.tasekomines.com and filed on www.sedar.com. Except where otherwise noted, all
currency amounts are stated in Canadian dollars. Taseko’s 75% owned Gibraltar Mine is located north of the City
of Williams Lake in south-central British Columbia. Production and sales volumes stated in this release are on a 100% basis unless otherwise indicated.
May 4, 2022, Vancouver, BC – Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the "Company") reports Adjusted EBITDA* of $38 million for the first quarter 2022, a 61% increase over the same period 2021. Earnings from mining operations before depletion* was $43 million and
Cash flows provided by operations was $52 million for the quarter. Adjusted net income* was $6 million, or
$0.02 per share.
Stuart McDonald, President and CEO of Taseko, stated, “Copper markets continue to be robust and Taseko’s
realized copper price of US$4.59 per pound and sales volumes of 27 million pounds drove strong financial results
in the first quarter. Production of 21 million pounds of copper and 236 thousand pounds of molybdenum was on plan, as development of the upper benches of the Gibraltar pit progressed. The Gibraltar pit will be the
primary source of ore for the remainder of this year and grade and continuity of mineralization are expected to gradually improve as mining advances to deeper benches. Softer ore in the Gibraltar pit is allowing for increased
milling rates, in line with our expectations and historical performance. Mill throughput averaged over 87,000 tons per day in March, and 90,000 tons per day in April, well above name plate capacity. We continue to expect
2022 copper production of 115 million pounds (+/-5%), with production weighted to the back half of the year.”
Mr. McDonald added, “We are seeing some inflationary pressures on certain input costs, most notably higher diesel prices, which contributed to an overall 9% (or $7 million) increase in total site costs* at Gibraltar this
quarter. Operating margins are expected to improve as copper production increases over the remainder of the year.”
“In March, we announced a new 40% larger mineral reserve for Gibraltar, extending the mine from 16 to 23
years. The new reserve has the same average grade as the previous, but with a slightly higher strip ratio in the
latter half of the mine life. The increase in reserves was a result of updating pit designs using a copper price of
US$3.05 per pound (previously US$2.75 per pound), which is still conservative but more in line with the current
long-term consensus price of US$3.50 per pound. The after-tax NPV8 of Gibraltar at the long-term consensus
price is now $1.1 billion for Taseko’s 75% share of the mine,” continued Mr. McDonald.
“At Florence Copper, we are still waiting for the draft Underground Injection Control (“UIC”) permit to be
issued by the US Environmental Protection Agency (“EPA”), which will initiate the 45-day public comment
period. This process is taking longer than expected, but we are in regular contact with the EPA who continue to
confirm that the process is advancing towards the issuance of the draft UIC permit shortly. During the first
quarter, we spent a further $25 million on procurement of long-lead time items and other pre-construction work.
We are well positioned to move into the construction of the commercial production facility upon receipt of the final permit,” concluded Mr. McDonald.
see & read more on
https://www.tasekomines.com/assets/docs/Q1_2022_Earnings_Release.pdf |
