TSX- and NYSE-listed Taseko Mines confirms there have been no confirmed cases of Covid-19 nor related impacts at any of its operations or offices in Canada and the US.

Particularly, the company’s 75%-owned Gibraltar mine, in British Columbia, has operated at planned rates in the first quarter and the company expects it to produce about 32-million pounds of copper.

“The health and safety of our employees is the most important aspect of our business. We believe it is important to protect the safety of our employees as well as their continued employment, both important factors at this time.

“To this end, the mine implemented many procedures in advance of the health authorities’ directives to mitigate the risk of Covid-19 impacting our employees and our mining operations. Our entire workforce has been fully engaged in this process,” Taseko says.

In the event illness does occur among some of the company’s employees, procedures are designed to curb widespread infection among other employees.

“As during the devastating forest fires of 2017, the resolve of our entire workforce is impressive in this time of crisis, which is why we have been extremely diligent and taking extra precautions at all our work sites.

“While we have not had any known occurrences of the virus anywhere in the organisation, we will remain focused on protecting our employees until the risk subsides,” the company points out.

With copper put options securing a minimum price of $2.60/lb until the end of April, Taseko has the benefit of some additional time to adjust to a lower copper price environment. This while operating costs are dropping, with more than 30% lower diesel prices.

In fact, Taseko says it locked in a price that will reduce diesel costs by more than $6-million this year.

“We expect decreases in other areas such as explosives, grinding media and other inputs. The BC Hydro power cost deferral programme initiated in 2016, which allows us to defer up to 75% of Gibraltar’s power costs, is still in place and expected to come into effect this month.

“The weakened Canadian dollar against the US dollar has partially offset the US dollar copper price decline, and this too is benefitting our operating margin as roughly 80% of Gibraltar’s costs are Canadian dollar denominated,” says CEO and director Russel Hallbauer.

Beyond the input costs, which naturally fall when oil and copper drop, Taseko has studied a number of mine plan options and chosen one which will allow the mine to operate with reduced site operating costs and maintain budgeted copper production for the year.

“We believe this will provide Taseko with sufficient operating margin going forward,” Hallbauer comments.

Taseko president Stuart McDonald noted that, from a liquidity perspective, the company started the year with a healthy cash balance.

“We have eliminated capital spending and are deferring major equipment rebuilds. All non-essential project spending has been cut.

“At the Florence copper recovery project, near Phoenix, we continue to operate the test facility but have reduced overall site spending. At this time, we feel we are positioned with adequate financial flexibility while we manage through this unprecedented crisis.”