Taseko Q3 copper production up 25% in B.C.
Taseko Mines Ltd. [TKO-TSE] announced that its Gibraltar mine produced 35 million pounds of copper and 369,000 pounds of molybdenum in the third quarter (100% basis).
“The 25% quarter-over-quarter increase in copper production was as result of higher grades, improved recoveries and increased mill throughput,’’ said Taseko President and CEO Stuart McDonald. “Mining in the Gibraltar pit it progressing on plan and the benches are providing the ore quality we expected,” he said.
“Molybdenum grades have also increased as mining has progressed deeper into the Gibraltar pit resulting in a 60% increase in quarterly molybdenum production.”
Taseko shares advanced on the news, rising 0.621% or $0.01 to $1.62. The shares currently trade in a 52-week range of $2.53 and $1.40.
The company said a port workers strike in early July caused shipping delays and a build up of Gibraltar copper concentrate inventory. As a result, third quarter sales volumes lagged production by three million pounds, and the excess inventory is expected to be shipping and sold in the fourth quarter.
The company said it was providing a third quarter production update in advance of an analyst and investor tour taking place at the Gibraltar mine later today.
The Gibraltar mine is Taseko’s flagship operation It produced 28 million pounds of copper and 230,000 pounds of molybdenum in the second quarter.
“Mining operations are now well established in the lower benches of the Gibraltar pit, which have higher grades and larger, more consistent or zones,’’ McDonald has said. Low mill availabilities had an impact on production in April and May, but in June and July the operation benefited from the softer ore in the Gibraltar pit and mill throughput averaged well above nameplate capacity.
The Gibraltar pit will be the sole source of ore for the remainder of 2023.
Taseko is a Vancouver-based company with a portfolio that includes the Gibraltar mine in British Columbia, the Florence Copper Project in Arizona, and the New Prosperity copper-gold project, which is located near Williams Lake, B.C.
Back in March, 2023, the company completed the acquisition of an additional 12.5% interest in the Gibraltar mine from Sojitz Corp. and now holds an effective 87.5% stake in the mine.
Florence Copper is an in-situ copper recovery project located midway between Pheonix and Tucson, near the community of Florence, Arizona. Development is being performed in two phases, including a phase one production test facility and a second phase commercial facility.
Florence is expected to produce an average of 85 million pounds of copper annually during a projected lifespan of 22 years. Operating costs are forecast at US$1.11 per pound.