Taseko Announces Strong Third Quarter 2013 Results
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 volumes stated in this release are on a 100% basis unless otherwise indicated.
October 30, 2013, Vancouver, BC – Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) (“Taseko” or the “Company”) reports the results for the three months ended September 30, 2013.
Highlights
- Earnings from mining operations (before depletion and amortization) were $19.5 million.
- Revenues for the third quarter 2013 were $66.8 million from the sale of 20.0 million pounds of copper and 110 thousand pounds of molybdenum.
- Total production at Gibraltar (100%) for the third quarter was 36.7 million pounds of copper and 284 thousand pounds of molybdenum.
- Operating costs of production for the third quarter declined 7% to US$1.95 per pound, from US$2.09 per pound in the prior quarter. Total operating costs for the third quarter, after by-product credit and including off-property costs, were US$2.21 per pound.
- In October, Taseko extended its copper hedging program by purchasing put options for 13.5 million pounds of copper in the second quarter of 2014 at a strike price of $3.00 per pound.
For the three months ended September 30, 2013, Taseko had earnings from mining operations (before depletion and amortization) of $19.5 million and cash flow from operations, before changes in non-cash working capital, of $12.9 million. This compares to earnings from mining operations (before depletion and amortization) of $12.9 million and cash flow from operations, before changes in non-cash working capital, of $7.0 million for the three months ended June 30, 2013. Taseko recorded net earnings of $0.1 million for the three months ended September 30, 2013, which compares to a net loss of $14.7 million in the second quarter of 2013.
Russell Hallbauer, President and CEO of Taseko commented, “Operationally, the third quarter results met our internal expectations and we are pleased to say that the ramp up of our new concentrator #2 is complete. The strong performance of the third quarter has continued, with concentrator throughput averaging approximately 90,000 tons per day for the past six weeks, exceeding design capacity. We expect the fourth quarter will be the first quarter where the full impact of the new concentrator is realized.”
“With the copper price stabilizing above $3.00 per pound and with Gibraltar’s operating costs trending lower, we will benefit from improved margins which will generate strong cash flows going forward. We will use this cash to invest in our 100% owned assets in a disciplined manner, to unlock the significant intrinsic shareholder value of these projects. Even though we remain optimistic about the long-term price of copper, we will continue to insure minimum revenues through the purchase of copper put options.”
Mr. Hallbauer continued, “By the end of this week, we expect the three member panel which has been reviewing our New Prosperity Project to issue its report. While we have no insight into the content of the report, we believe our commitment to invest an additional $300 million in environmental responsibility fully addresses the concerns from the 2010 review and that the project should receive the necessary authorizations to proceed.”
Taseko will host a conference call on Thursday, October 31, 2013 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results. The conference call may be accessed by dialing (877) 303-9079 in Canada and the United States, or (970) 315-0461 internationally. Accompanying presentation slides will be available to download at tasekomines.com. Alternatively, the live webcast can be accessed at tasekomines.com.
The conference call will be archived for later playback until November 15, 2013 and accessed by dialing (855) 859-2056 in Canada and the United States, or (404) 537-3406 internationally and using the passcode 760108833
For further information contact: Brian Bergot, Investor Relations — 778-373-4545, toll free 1-800-667-2114
Russell Hallbauer
President and CEO
