Taseko reports strong Q2 output on higher Gibraltar grades
TORONTO (miningweekly.com) – Base metals miner Taseko Mines has reported a strong quarter-on-quarter production improvement for the three months to June 30, with copper output some 40% higher as the mine encountered higher-than-expected grades at its cornerstone Gibraltar mine, in British Columbia.
The TSX- and NYSE MKT-listed miner produced 39.8-million pounds of copper and 479 000 lb of molybdenum in the second quarter of the year, resulting in total sales for the quarter of 42-million pounds of copper and 400 000 lb of molybdenum.
"Gibraltar operated to expectation during the second quarter. Increased production was a result of improved copper grade, better than design mill throughput and higher copper recoveries. Additionally, mine site spending remained at a similar level to the first quarter, which will result in lower site operating costs per pound in the second quarter,” president and CEO Russell Hallbauer said.
He remained confident that despite the recent decrease in the copper price, the company believed that Gibraltar could still generate significant operating cash flow owing to the mine's current cost structure and the weakened Canadian dollar.
Taseko had some protection against falling copper prices as it had copper put options in place in the third quarter that would provide a minimum price of $2.50/lb for 15-million pounds of production.
Taseko held a 75% stake in Gibraltar, with Cariboo Copper owning 25% of the joint venture.
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