Taseko Mines Reports Copper and Molybdenum Production Decline in Q1

Taseko Mines (TKO) said its first-quarter 2022 copper (Cu) and molybdenum (Mo) production was down year-on-year, mainly driven by lower ore grades and recoveries from mining in the upper levels of the Gibraltar pit, according to Kitco News.

The company produced 236,000 pounds of molybdenum in the first quarter (Q1 2021: 530,000 pounds), related to lower grades of Gibraltar ore. Taseko added that its Q1 2022 production is on schedule and that ore quality is expected to improve for the remainder of the year as mining progresses deeper into the Gibraltar pit.

The company noted that at the Florence copper mine, it is still waiting for the U.S. Environmental Protection Agency (EPA) to issue a draft Underground Injection Control (UIC) permit, which will initiate a 45-day public comment period. The company said in a statement, "The process is taking longer than expected, but we are in regular contact with the EPA and they continue to confirm that the process is moving forward and that the draft UIC permit will be issued soon."

Gibraltar is expected to produce 115 million pounds of Cu in 2022 (+/-5%) on a 100% basis, with production weighted to the second half of the year and the first quarter being the lowest production quarter.

The company also reported adjusted EBITDA of $38 million for the first quarter of 2022, an increase of 61% over the same period in 2021. Earnings before depletion from mining operations for the quarter were $43 million and cash flow provided by operations was $52 million. Adjusted net income was $6.0 million, or $0.02 per share.

Taseko Mines is a dynamic and growing company focused on the operation and development of mines in North America. Headquartered in Vancouver, Taseko operates its 75%-owned Gibraltar Mine, the second-largest copper mine in Canada, employing nearly 700 people and producing an average of 140 million pounds of Cu and 2.5 million pounds of molybdenum annually.

Taseko's wholly owned Florence Copper, Yellowhead and Aley projects are all advanced stage projects that provide the Company with a diverse commodity pipeline. The Yellowhead project is located in the Thompson-Nicola region of British Columbia, near Vavenby, approximately 150 kilometers northeast of Kamloops, and is planned to be a 90,000 tonne per day open-pit Cu mine with a 25-year mine life.

Including Yellowhead, Taseko's total proven and probable mineral reserves contain a total of 15 billion pounds of copper. Taseko Mines is currently preparing the environmental assessment (EA) process for the Yellowhead project, which the company will advance over the next several years with internal resources and minimal capital expenditures.

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