• Adjusted EBITDA: $224 million for 2024.
• Cash Flow from Operations: $233 million for 2024.
• Available Liquidity: Over $330 million at the end of 2024.
• Copper Production: 106 million pounds in 2024; 29 million pounds in Q4.
• Molybdenum Production: 1.4 million pounds in 2024; 600,000 pounds in Q4.
• Cash Cost per Pound of Copper: USD2.42 in Q4.
• Revenue: $608 million for 2024, the highest reported by Taseko.
• Net Loss (GAAP): $13 million for 2024 or $0.05 loss per share.
• Adjusted Net Income: $57 million for 2024 or $0.19 per share.
• Total Site Costs at Gibraltar: $414 million for 2024.
• Capitalized Stripping Costs: $32 million for 2024.
• Cost per Pound of Copper: USD2.66 for 2024.
• Florence Capital Spend: USD155 million to date on the commercial facility.
• Cash on Hand: $173 million at the end of 2024.
• Copper Price Protection: Minimum price of USD4 per pound for 2025.

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

Release Date: February 20, 2025

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

Positive Points

• Taseko Mines Ltd (TGB) successfully overcame challenges such as milling disruptions, major maintenance, and a labor strike, resulting in strong fourth-quarter and annual financial results.
• The company made significant progress at the Florence project, with construction advancing smoothly and on schedule, soon to become their second producing operation.
• Taseko Mines Ltd (TGB) maintained a solid balance sheet, ending 2024 with over $330 million of available liquidity after significant capital expenditure at Florence.
• Gibraltar achieved its best quarter in history with mill throughput exceeding design capacity, producing 29 million pounds of copper in Q4.
• The company generated $224 million of adjusted EBITDA and $233 million of cash flow from operations, showing notable improvements over 2023.

Negative Points

• Gibraltar experienced lower mill operating hours due to scheduled project work, maintenance, and an unexpected labor strike, resulting in roughly 15 million pounds of lost copper production.
• The company posted a GAAP net loss of $13 million for 2024, or $0.05 loss per share.
• Mill recoveries were impacted by transition ore with higher oxide content, affecting production efficiency.
• Capitalized stripping costs are expected to increase in 2025, associated with the Connector pit pushback.
• The first quarter of 2025 is expected to be the weakest due to the initiation of a new pushback in the Connector pit, with mined ore supplemented by low-grade stockpiled ore.

Q & A Highlights

Q: What was behind the higher sustaining CapEx spend at Gibraltar in the fourth quarter, and what are the expectations for FY25? A: Bryce Hamming, CFO, explained that the higher sustaining CapEx was due to the timing of repairs and maintenance, particularly on the mobile fleet at Gibraltar. Going forward, they expect sustaining capital to be in the $20 million to $30 million range, primarily focused on fleet maintenance.

Q: Have any contracts been put in place for the acquisition of acid for Florence? A: Richard Tremblay, COO, stated that they are in ongoing dialogue with four acid suppliers in the US and plan to issue a Request for Proposal (RFP) this quarter to secure future acid supply.

Q: How is the throughput at Gibraltar looking this quarter, especially with the soft Connector pit ore? A: Richard Tremblay, COO, confirmed that Gibraltar's throughput remains strong due to the softer Connector pit ore. However, production is expected to be weighted towards the second half of the year, with Q1 being the weakest due to supplementing ore feed with stockpile material.

Q: How are the well costs at Florence tracking against forecasts, and what is the plan for acid supply and pricing? A: Richard Tremblay, COO, mentioned that drilling performance is a focus area, and they are pleased with the progress and cost efficiency. Regarding acid, they are in discussions with suppliers and will issue an RFP to secure supply, with pricing being a key consideration.

Q: Is there a plan to transition drilling activities at Florence to in-house operations eventually? A: Richard Tremblay, COO, indicated that while they may consider bringing drilling in-house in the future, they will continue to rely on external parties for the near term. A strong management team is in place to oversee these activities.

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