The Gibraltar mine in British Columbia
Base metals miner Taseko is expecting a strong 2021, citing an improvement in copper market conditions based on strong demand and ongoing mine supply challenges.
“Copper prices have continued to strengthen, and many analysts are forecasting higher prices going forward,” president Stuart McDonald said on Monday.
Government stimulus programmes and investments in renewable energy infrastructure would bolster demand.
The current copper price of about $3.65/lb is about $0.80/lb higher than the average price in 2020, McDonald said, noting that at current prices, Taseko would have generated about C$200-million of adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) in 2020.
“. . . so, we are very optimistic about our financial outlook this year,” he said in a financial and operational update.
Taseko expects its adjusted Ebitda for 2020 to be in the range of C$105-million to C$110-million, up from C$51-million in 2019.
The Gibraltar mine, in British Columbia, produced 123-million pounds of copper and 2.3-million pounds of molybdenum in 2020. In 2021, copper production would be about 125-million pounds.
The company is also advancing the Florence project, in Arizona, and McDonald said that the improved market conditions were timely, as the company continued to advance financing options for the copper project.