• Copper Production: 20 million pounds in Q1.
• C1 Cost: CAD 2.26 per pound.
• Copper Sales: 22 million pounds at USD 4.24 per pound.
• Adjusted EBITDA: CAD 34 million.
• Cash Flow from Operations: CAD 56 million.
• Revenue: CAD 139 million.
• GAAP Net Loss: CAD 29 million or CAD 0.09 per share.
• Adjusted Net Loss: CAD 7 million or CAD 0.02 loss per share.
• Total Site Costs: CAD 107 million.
• Capitalized Stripping Costs: CAD 38 million.
• Florence Project Costs: USD 57 million in Q1.
• Cash on Hand: CAD 121 million.
• Available Liquidity: CAD 279 million.
• Price Protection: CAD 4 per pound minimum floor price for 81 million pounds for the year.

• Warning! GuruFocus has detected 5 Warning Signs with TGB.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Florence Copper project is progressing on time and on budget, with first copper production expected before the end of the year.
• 88 out of 90 production wells at the Florence project are completed, with only two wells left to drill.
• The installation of the electrowinning crane at the SX/EW plant was completed, allowing for further construction progress.
• Taseko Mines Ltd (TGB) has secured a price protection strategy for the year, ensuring a minimum floor price of CAD4 per pound for most of its production.
• The Yellowhead Copper project is advancing with plans to publish a new technical report this summer, potentially benefiting from new Canadian tax credits.

Negative Points

• Copper recoveries at the Gibraltar mine dropped to 68% due to the impact of oxidized ore, resulting in a 10% lower production than expected.
• Challenging mining conditions at the Gibraltar mine have delayed access to higher-grade ore, impacting production timelines.
• The company posted a GAAP net loss of CAD29 million for the quarter, attributed to lower production and higher costs.
• Capitalized stripping costs at Gibraltar were significantly higher at CAD38 million, impacting financial performance.
• 2025 production guidance has been reduced by approximately 10 million pounds due to delays and lower-than-expected grades.

Q & A Highlights

Q: Can you provide more context on the issues you're encountering in Gibraltar with respect to the ground conditions? A: Richard Tremblay, Chief Operating Officer, explained that the upper benches in the connector pit involved challenging overburden that required additional rock placement to improve ground conditions for equipment access. This has delayed progress in Q1, but expectations are now being met.

Q: Will the issues around oxidized stockpiles affect Q2, and should we expect similar grades and recoveries as Q1? A: Richard Tremblay confirmed that production levels in Q2 will be comparable to Q1, and this has been factored into the forward outlook and reduction of guidance for the year.

Q: Regarding Florence, are there any impacts from tariffs on finishing capital or costs going forward? A: Stuart McDonald, President and CEO, stated that there is no impact from import tariffs on the capital project as supplies and equipment are already in the US. For long-term operating costs, the tariff environment is volatile, but sulfuric acid, a major input, is sourced within the US.

Q: Are there any updates on the New Prosperity project and potential breakthroughs? A: Stuart McDonald mentioned that while there is no significant update, there has been constructive dialogue, and they are close to a resolution, with the outlook being positive.

Q: What are the financial highlights for the first quarter? A: Bryce Hamming, Chief Financial Officer, reported a GAAP net loss of CAD29 million due to lower production and higher costs. Adjusted net loss was CAD7 million. Total site costs were CAD107 million, and capitalized stripping costs were CAD38 million. The company ended the quarter with CAD121 million in cash.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.