TORONTO (miningweekly.com) – After enduring a rollercoaster first quarter in which a dissenting shareholder launched a scathing proxy contest against which base metals miner Taseko Mines had successfully defended itself, the company this week reported a wider adjusted loss than expected.
Excluding special items, Taseko reported a C$15.7-million wider net loss of C$18-million, or C$0.08 a share, missing analyst expectations by a penny.
The net loss for the period ended March 31 improved by C$23.7-million, to a loss of C$1.5-million, or C$0.01 a share, compared with a net loss of C$25.2-million, or C$0.11 a share.
“First-quarter results were impacted by lower copper grades, which were forecast in Gibraltar’s 2016 operating budget. In the current low copper price environment, our focus will remain on operating costs, which in the first quarter were maintained at a very low cost per ton milled of $9.59.
“The average realised copper price for the quarter was $2.10/lb, which is the lowest pricing quarter since the first quarter of 2009. Considering the copper price and grade Gibraltar processed in the first quarter, it is impressive we were able to generate break-even earnings from mining operations,” stated president and CEO Russell Hallbauer.
Output from the company’s flagship 75%-owned Gibraltar mine, in British Columbia, rose by 400 000 lbs to 28.8-million pounds during the quarter. Sales improved by 5.1-million pounds of copper to 30.5-million pounds, which contributed to lift revenues by C$3.1-million to C$58.2-million during the period.
Site operating costs, net of by-product credits, were $1.78/lb produced and total C1 operating costs were $2.11/lb produced.
Gibraltar’s copper output for 2016 was expected to be in the range of 130-million to 140-million pounds.