Metals miner Taseko has extended its copper price protection strategy amid ongoing volatility caused by global economic and political issues, CEO Stuart McDonald reported on Monday.
The company purchased put options covering 41-million pounds of copper at a strike price of $3.75/lb for the second half of this year.
The price protection now in place for the next nine months should secure a minimum operating margin of about C$165-million for 2021.
Protecting a significant operating margin in 2021 would allow the company to focus on near-term capital growth plans related to the Florence copper project, in the US, and also fund ongoing environmental assessment work at the Yellowhead project, in Canada.
“This approach to managing copper price volatility does not cap our cash flow should copper prices continue to rise, as many of the world's largest banks and trading entities are indicating could occur,” McDonald stressed.