Taseko Mines Projects Higher Copper Output in Second Half of 2024 Amid Recovery Efforts

Taseko Mines is gearing up for a significant boost in copper production in the second half of 2024, aiming to increase output by 20-30% compared to the first half of the year. This surge is crucial for the Canada-based company as it seeks to meet its revised annual production guidance after a two-week strike at its Gibraltar mine in British Columbia in June.

The strike, which caused a temporary halt in operations and delayed essential maintenance on one of the mine's two mill concentrators, led Taseko to lower its full-year production forecast by 5 million pounds in July. The company produced only 49.9 million pounds of copper in the first six months of 2024, necessitating a higher output of 60-65 million pounds in the latter half of the year to meet its new target.

To achieve this, Taseko plans to exceed the Gibraltar mine’s nameplate capacity of 85,000 metric tonnes per day over the next two quarters. The company is also exploring options to slightly increase mining rates in the short term.

Despite the production setbacks, Taseko benefited from higher copper and molybdenum prices in the second quarter, which bolstered its revenues by 23% year-on-year to C$138 million ($99 million). Average realized copper prices climbed to $4.49 per pound, up from $3.78 per pound in the same period last year, while molybdenum prices also saw a modest increase.

However, the company reported a quarterly loss of nearly C$11 million, a sharp reversal from the C$10 million profit recorded in the same period last year. Taseko attributed the loss to one-time expenses, emphasizing that these costs do not reflect its core operational performance.

Looking ahead, Taseko remains optimistic about copper's long-term prospects. The company anticipates a recovery in copper prices, driven by global electrification and infrastructure initiatives, despite the recent 17% decline in three-month copper prices on the London Metal Exchange since their peak in May.