Taseko releases Q1 results, plans US$50 M offering
Taseko Mines Ltd. [TKO-TSE] said it has entered into an equity distribution agreement related to a planned at-the-market-equity (ATM) offering that could raise up to US$50 million, the company said.
It said the ATM will be effective until May 25, 2025 unless terminated before that date. Proceeds are earmarked for the following corporate purposes:
- Capital expenditures at the company’s Gibraltar mine, which is expected to produce 115 million pounds of copper (plus/minus 5.0%) in 2023.
- Expenses associated with the development of the company’s Florence copper project.
- Expenses at Taseko’s other projects.
Taseko is a Vancouver-based company with a portfolio that includes the Gibraltar mine in British Columbia, the Florence Copper Project, and the New Prosperity copper-gold project, which is located near Williams Lake, B.C.
On May 3, 2023, Taseko shares closed at $2.21 and currently trade in a 52-week range of $2.53 and $1.15.
Details of the ATM were announced after Taseko released its 2023 first quarter results. The company reported first quarter EBITDA (earnings before interest, taxes, depreciation and amortization) of $36 million, earnings from mining operations before depletion of $41 million, and cash flows provided by operations of $28 million. Adjusted net income was $5 million, or $0.02 per share.
“An average realized copper price of US$4.02 per pound in the first quarter helped to drive our strong financial performance,’’ said Taseko President and CEO Stuart Donald.
Production in the first quarter was 25 million pounds of copper and 234,000 pounds of molybdenum. Gibraltar produced 24.9 million pounds of copper in the first quarter, which was slightly below expectations due to unplanned mill downtime that was necessary to address crusher maintenance and other operational issues.
On March 15, 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.
In March, 2023, the company filed a new technical report for the Florence copper project. The report includes updated capital cost estimates, based on detailed engineering and recent contractor and vendor quotations.
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.
The company said the U.S. Environmental Protection Agency (EPA) permitting process continues to advance and the company anticipates a favourable outcome in the coming months. “We are ready to start construction of the commercial production facility as soon as the final underground injection control permit is issued,’’ said Donald.