VANCOUVER (miningweekly.com) – Base metals producer Taseko Mines is finding itself in an “ideal scenario”, as higher full-year and fourth-quarter production, lower costs and higher copper prices conspire to boost its balance sheet.
The Vancouver-based miner, which owns a 75% stake and operates the Gibraltar copper/molybdenum mine, in British Columbia, reported fourth-quarter copper output of 40.7-million pounds, up 23% year-on-year.
Total copper output for the year, at 133.2-million pounds, was down 6% over 2015. Total copper sales for the year were 131.1-million pounds, down 8% on 2015's levels.
Taseko reported on Monday that it managed to maintain mill throughput despite challenging weather conditions in the December quarter, resulting in fourth-quarter copper output increasing by 23% quarter-on-quarter. The increase in copper production was mainly the result of higher copper grades and improved recoveries.
The fourth quarter was the first full quarter the molybdenum plant has operated since it was restarted in September. Taseko said it operated "exceptionally well", with recoveries averaging about 50% for the quarter.
Fourth-quarter molybdenum production was 0.8-million pounds, with the mine having produced 0.9-million pounds of molybdenum in the the four months that the plant operated.
"We are extremely happy with copper and molybdenum production in the fourth quarter. It is a quarter that truly demonstrates the production and cash flow capability of Gibraltar. Higher copper and molybdenum production is having a significant positive impact on unit costs,” stated president and CEO Russell Hallbauer.
He added that several factors that affected Taseko’s profitability had aligned to create an “ideal scenario". “Higher production at a much lower cost, a copper price which has climbed nearly 25% since October and a weak Canadian dollar, which has the Canadian dollar price of copper back to 2011/12 levels. Each of these factors has a significant and an immediate financial impact on our business," Hallbauer said.
The Gibraltar operation is expected to benefit from increasing grades during 2017.