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Dec 31, 2024
TKO Q4 2023 Earnings Report
Taseko reported strong financial performance in Q4 2023, with significant increases in revenue and net income, driven by improved copper production and higher effective interest in the Gibraltar Mine.
Key Takeaways
Taseko Mines Limited reported a strong fourth quarter and full year 2023, with Q4 Adjusted EBITDA of $69.1 million and net income of $67.4 million. Copper production reached 34.2 million pounds in Q4, contributing to a total annual production of 122.6 million pounds, exceeding original guidance. The company also made significant progress on its Florence Copper project, securing final permits and commencing construction of the commercial production facility.
Fourth quarter Adjusted EBITDA was $69.1 million, and net income was $67.4 million ($0.23 per share).
Copper production from Gibraltar reached 34.2 million pounds in Q4 2023, contributing to a full-year production of 122.6 million pounds.
Total operating cash costs (C1) were US$1.91 per pound in Q4, reflecting strong production efficiency.
The Florence Copper project achieved a major milestone with the final Underground Injection Control permit becoming effective, and construction of the commercial production facility has commenced.
TKO
TKO
Forward Guidance
Taseko expects Gibraltar to produce approximately 115 million pounds of copper in 2024, with first copper production from Florence Copper expected in Q4 2025. The company is focused on advancing construction at Florence and optimizing operations at Gibraltar.
Positive Outlook
- Florence Copper project is fully permitted and construction of the commercial production facility is advancing.
- First copper production from Florence Copper is expected in Q4 2025, providing significant growth.
- Gibraltar Mine will continue to benefit from high-quality ore from the Gibraltar pit in H1 2024.
- Company has secured copper price and fuel price protection for H1 2024.
- Long-term copper demand is projected to double by 2035, providing strong market tailwinds.
Challenges Ahead
- Mill downtime in concentrator #2 in January 2024 for component replacement.
- Concentrator #1 scheduled for three weeks shutdown in June for crusher relocation and maintenance.
- Total copper production at Gibraltar for 2024 is expected to be lower at 115 million pounds due to scheduled downtime.
- Short-term volatility in copper prices is expected due to macroeconomic uncertainty and higher interest rates.
- No other significant capital projects are planned for Gibraltar in 2024, indicating limited immediate expansion beyond Florence.