The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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I see the week's trades are mostly US$ and C$ thus dragging the SP to new heights. Fresh thinking required. (Similar story with e.g. GTE.)(Share, you probably are one who has experience re liquidity)
A useful reminder and (cattle) prod. W.r.t your final sentence has any indication been given . . . it would be my lure ?
Q1 revenues of $147 million and adjusted EBITDA* of $50 million, 38% higher than the same quarter in 2023.
Gibraltar produced 30 million pounds of copper and 247 thousand pounds of molybdenum with TCC of US$2.46 per pound of copper vs sales price of US$3.89 per pound during the quarter.
The purchase of the remaining 12.5% interest in Gibraltar and additional offtake rights looks to have been masterfully crafted as the copper price has surged 25% since throwing off increased cashflow and with the near term prospect of increasing production!
Aside from Florence ticking along, construction of the plant expected to begin before end of quarter, it's encouraging they have refinanced senior notes out to 2030 by which time Florence and Gibraltar will be well established, copper pricing will be north of $8 / pound and investors here will be receiving a handsome dividend. We can hope..
I have spent a fair amount of time examining TKO: the credentials are impressive but McDonald hardly generates/stimulates potential UK confidence in participating in the journey, i.e. dividend. Investors do not seem to have had any return on capital and the recent SP spurt could have ended. In the meantime management have shown an appetite for self-aggrandisement.
Directors locking in big profits on Options, but doesn't necessarily send a good signal to investors. Should they too be locking in profits?
anto***asta - downgrade to hold, raising tp to 2,065p (from 1,925p) – stock trades on 1.4x nav, and we downgrade on valuation.
atalaya - raising tp to 580p (from 530p), maintain buy – lower fy24 production (51.1kt v 53.6 kt previously), offset by rolled fwd valuation date.
central asia metals - raising tp to 215p (from 180p), maintain hold - we have changed our caml valuation methodology to align with the other mining stocks we cover and now use 50/50 0.9x p/nav and 5x ev/ebitda.
jubilee – maintain 10p tp and buy - lower fy24 copper production to 3.25kt (from 5.5kt), while stronger expectations for chrome in 2hfy24 offset the impact.
taseko - raising tp to 275p/c$4.65 (from 235p/c$4.05)- not reported yet, rolled forward valuation date.
Any opinion on the recent director sales? Company came on my radar from this https://www.youtube.com/watch?v=uGhcduxKKWE
Financials
- Headline revenues of $525 million and adjusted EBITDA of $190 million for 2023.
- That's a 34% increase in annual revenue, thanks to a combination of improved copper production and Taseko's bold move to increase their interest in the Gibraltar Mine during the year from 75% to 87.5%.
- Net income for the year was $83 million ($0.29 per share)
- Operating cashflow was an impressive $63 million in Q4 alone!
Operations
- Copper production (Gibraltar) was 34 million pounds in Q4 and 123 million pounds in the FY 2023.
- Irrespective of company holdings in the project that's an impressive 26% increase on 2022, annual production came in over and above guidance.
- Cash costs were lower at just $1.91 per pound in Q4 and averaging $2.37 per pound for the year.
Florence Copper project
- The EPA's permitting process concluded in Q4 with the final Underground Injection Control permit finanlised.
- Florence project financing already secured (Taurus Mining Royalty Fund, Societe Generale, Mitsui and Bank of America).
- Construction of the commercial production facility underway with first copper production expected Q4 2025.
- Florence Copper Project has a NPV of $930 million (after-tax, 8% DR) with an IRR of 47% (after-tax) and expected payback period of 2.6 years based on annual production of 85 million pounds copper. Current mine life of 22 years.
Outlook 2024
- Gibraltar Mine to continue with Gibraltar pit ore as main source of mill feed for H1 2024, transitioning to the Connector pit later this year.
- Gibraltar guidance of 115 million pounds of copper production.
- SX/EW facility to come back online in 2026.
- Capital costs of only $10 million planned for Gibraltar in 2024.
Taseko Announces a 26% Increase in Annual Copper Production from its Gibraltar Mine
VANCOUVER, BC, Jan. 10, 2024 -- Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or the "Company") is pleased to announce that the Gibraltar mine produced 34 million pounds of copper and 369 thousand pounds of molybdenum in the fourth quarter of 2023. For the full year, Gibraltar produced 123 million pounds of copper, well above guidance and 26% higher than the previous year.
Copper production in the fourth quarter was supported by strong copper grades of 0.27% with ore from the lower benches of the Gibraltar pit. Mill throughput in the quarter averaged 83,000 tons per day and was impacted by additional downtime for maintenance and monitoring of the ball mill in concentrator #2.
Copper sales volumes in the fourth quarter were 36 million pounds, and year-end concentrate inventories remained above normal levels.
Stuart McDonald, President and CEO of Taseko, commented, "The strong finish to 2023 is expected to continue in 2024 as the Gibraltar pit will remain the main source of ore for the first half of this year."
Taseko Mines Announces that the UIC Permit for Florence Copper is now Effective
Oct. 31, 2023 - Taseko Mines Limited is pleased to announce that the US Environmental Protection Agency ("EPA") has confirmed that no appeals have been received and Florence Copper's final Underground Injection Control ("UIC") permit is now effective.
Stuart McDonald, President and CEO of Taseko, commented, "Successful completion of the UIC permitting process is a result of Taseko's long-term development approach, and the quality and environmental integrity of the project. Taseko is now in a unique position, with one of the very few fully permitted mining projects in North America. With the final permit in hand, we have a clear line of vision to commercial production and are that much closer to realizing the full value of Florence Copper."
Florence Copper, located in Arizona, USA, is the next copper mine development for Taseko. The Company anticipates that Florence Copper will be one of the greenest sources of copper for U.S. domestic consumption, with carbon emissions, water and energy consumption all dramatically lower than a conventional copper mine. Florence Copper is projected to be a low-cost copper producer, expected to manufacture 85 million pounds per year of LME Grade A copper cathode in the United States.
TASEKO MINES ANNOUNCES THIRD QUARTER COPPER PRODUCTION OF 35 MILLION POUNDS FROM THE GIBRALTAR MINE
Taseko Mines Limited (LSE: TKO) is pleased to announce that the Gibraltar Mine produced 35 million pounds of copper and 369 thousand pounds of molybdenum in the third quarter (100% basis).
Stuart McDonald, President and CEO of Taseko, commented, "The 25% quarter-over-quarter increase in copper production was a result of higher grades, improved recoveries and increased mill throughput. Mining in the Gibraltar pit is progressing on plan and the lower benches are providing the ore quality we expected. Molybdenum grades have also increased as mining has progressed deeper into the Gibraltar pit, resulting in a 60% increase in quarterly molybdenum production."
A port workers strike in early July caused shipping delays and a build-up of Gibraltar copper concentrate inventory. As a result, third quarter sales volumes lagged production by three million pounds, and the excess inventory is expected to be shipped and sold in the fourth quarter.
Taseko is providing this third quarter production update in advance of an analyst and investor tour taking place at the Gibraltar Mine later today. Presentation slides to be used during the tour will be available at https://tasekomines.com/investors/presentations.
Looked for mining operations globally after reading an article about the potential of this stuff to enhance the life of car batteries etc significantly which IMO will become a bigger and bigger thing when the older batterie's start going in numbers. 80% comes from one family controlled company in Brazil CBMM but the Chinese also have a 15% stake... Taseko have the largest operation in the US/Canada and the NYSE listing has gone up 20% since then end of May but in the same time period the good old LSE listing has gone up....0%! Its very illiquid on LSE and hard to buy in larger amounts not to mention the spreads but its a solid company below the radar IMO DYOR etc with this Niobium project (Aley Niobium Project in northern British Columbia) a future potential little gem?
Statement by Stuart McDonald, President and CEO of Taseko;
“An average realized copper price of US$4.02 per pound in the first quarter helped to drive our strong financial performance. Production in the first quarter was 25 million pounds of copper and 234 thousand pounds of molybdenum. Copper head grades for the period were on plan, averaging 0.22%, but production was slightly below plan due to unexpected mill downtime and operational issues with the primary crushers.
Mining advanced deeper into the Gibraltar pit which is the sole source of mill feed this year, and waste stripping ramped up in the new Connector pit. Initial tons of oxide ore were also mined from the Connector pit and have been placed on leach pads for future production when the Gibraltar SX/EW plant restarts. We have decided to defer the in-pit crusher move until the spring of 2024, to coincide with planned work on SAG mill #1 to minimize concentrator downtime.
In the first quarter, we increased our effective interest in Gibraltar to 87.5%, after acquiring a 12.5% stake from one of our joint venture partners. The transaction closed in mid-March and provides immediate 17% growth in our attributable copper production. Additionally, the five-year deferred payment structure allows Taseko to focus our financial resources on the construction of the commercial facility at Florence.
In March, we filed a new technical report** for the Florence Copper project. The report includes updated capital cost estimates based on detailed engineering and recent contractor and vendor quotations. Operating and sustaining capital costs have also been updated, and refinements have been made to the operating models based on the Production Test Facility (“PTF”) results. The project has been significantly de-risked in recent years and has an after-tax Net Present Value (8%) of US$930 million using a long-term copper price of US$3.75 per pound. The EPA permitting process continues to advance and we expect a favourable outcome in the coming months. We are ready to start construction of the commercial production facility as soon as the final Underground Injection Control permit is issued.
Considering global economic uncertainties, copper markets remain remarkably stable and continue to support a healthy price of about US$3.85 per pound. Demand for our product remains strong and the long-term supply / demand fundamentals appear to be favourable. In the short-term, we continue to maintain our price protection strategy, which provides a minimum copper price of US$3.75 per pound for most of Gibraltar’s production for the balance of 2023. Our original production guidance of 115 million pounds (+/-5%) for 2023 remains unchanged.
https://www.tasekomines.com/assets/docs/Q1-2023-Earnings%20Release.pdf
Taseko Announces At-The-Market Offering
May 3, 2023 – Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) (“Taseko” or the “Company”) announces that it has entered into an equity distribution agreement dated May 3, 2023 (the “Equity Distribution Agreement”) providing for an at-the-market equity offering program (“ATM”) with National Bank Financial, Canaccord Genuity and Stifel GMP and their respective United States affiliates (collectively, the “Agents”).
The ATM will allow Taseko, through the Agents, to offer and sell from time to time in Canada and the United States, through the facilities of the Toronto Stock Exchange (“TSX”) and the NYSE American LLC (“NYSE American”) such number of common shares as would have an aggregate offering price of up to US$50 million.
Sales of the common shares, if any, will be made in transactions that are deemed to be “at-the-market distributions” as defined in National Instrument 44-102 – Shelf Distributions and an “at-the-market offering” as defined in Rule 415 under the United States Securities Act of 1933, as amended, including sales made by the Agents directly on the TSX, the NYSE American or any other trading market for common shares in Canada, the United States or as otherwise agreed between the Agents and the Company. The Company has applied to the TSX and NYSE American for listing of the common shares that may be issued under the ATM and sales will be subject to the receipt of the required stock exchange approvals.
The common shares sold under the ATM will also be admitted to trading on the London Stock Exchange.
The ATM will be effective until May 26, 2025 unless terminated before such date in accordance with the Equity Distribution Agreement. The timing and extent of the use of the ATM will be at the discretion of the Company. Accordingly, total gross proceeds from sales made under the ATM, if any, could be significantly less than US$50 million.
The Company intends to use any proceeds from the ATM for its general corporate purposes, which may include (i) capital expenditures for the Company’s Gibraltar mine, (ii) expenses associated with the development of the Company’s Florence Copper project, (iii) expenditures on Taseko’s other projects, and (iv) general corporate and working capital purposes.
Taseko Mines announced updated economics for its 100%-owned Florence Copper Project at the end of March.
"The technical work completed by Taseko in recent years has been extensive and has de-risked the project significantly. The PTF operated successfully over an 18-month period and provided a valuable opportunity to test operational controls and strategies which will be applied in future commercial operations. In addition, a more sophisticated leaching model has been developed and calibrated to the PTF wellfield performance. This detailed modeling data, along with updated costing, has been used to update assumptions for the ramp up and operation of the commercial wellfield and processing facility."
Project Highlights:
Net present value of US$930 million (after-tax, at an 8% discount rate)
Internal rate of return of 47% (after-tax)
Payback period of 2.6 years
Operating costs (C1) of US$1.11 per pound of copper
Annual production capacity of 85 million pounds of LME grade “A” cathode copper
22 year mine life
Total life of mine production of 1.5 billion pounds of copper
Total estimated initial capital cost of US$232 million remaining
Long-term copper price of US$3.75 per pound
Stuart McDonald, President & CEO of Taseko, stated, “Despite global cost inflation in recent years, the Florence Copper Project continues to demonstrate robust economics and remains one of the lowest capital intensity copper development projects in the world.
The operational experience and technical information that we gained through the PTF testwork has been invaluable and we’re well positioned to build and operate the commercial-scale ISCR facility. The new Technical Report includes updated capital cost estimates based on detailed engineering and recent contractor and vendor quotations. The main cost increases relate to construction labour and wellfield drilling costs which impact both initial and sustaining capital costs.”
“The inflationary environment we have been in has also driven copper prices higher. With a lack of new mines being developed today and copper’s critical role in the global energy transition, the long-term price outlook remains very attractive for copper producers.The low-carbon, low impact production method at Florence Copper is expected to make it a preferred supplier of green, low carbon copper in the US domestic market. With procurement of long-lead items well advanced, we are ready to commence construction of the commercial facility following the issuance of the final UIC permit in the coming months,” Mr. McDonald concluded.
https://www.tasekomines.com/investors/news-releases/taseko-announces-improved-economics-for-its-florence-copper-project
EPA ISSUES DRAFT PERMIT FOR FLORENCE COPPER PROJECT
August 15, 2022, Vancouver, BC - Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the "Company") is pleased to announce the U.S. Environmental Protection Agency ("EPA") has publicly issued a draft Underground Injection Control ("UIC") permit for its Florence Copper Project. The EPA has stated that the public comment period for the draft federal permit will last 45 days, ending on September 29, with a virtual public hearing to be held on September 15.
Stuart McDonald, Taseko's President and CEO, commented, "The UIC permit is the final key permit required for the construction and operation of the Florence Copper commercial facility. Our project has gone through extensive scrutiny by both the Arizona Department of Environmental Quality and the EPA over the past eight years and we are confident that the rigorous work completed by both these regulatory bodies will result in permitting success in the coming months."
Florence Copper is expected to have the lowest energy and greenhouse gas-intensity ("GHG") of any copper producer in North America, and will reduce the United States' reliance on foreign producers for a metal considered to be critical for the transition to a low-carbon economy.
"As the United States advances toward its goal of net-zero carbon emissions by 2050 - including 100% clean electricity by 2035 and 50% light-duty electrical vehicle sales by 2030 - the country will need to address its reliance on imports of critical metals. Low impact, environmentally sound projects like Florence Copper will help meet the growing U.S. demand for copper," concluded Mr. McDonald.
Worse than expected despite managements efforts to mitigate operational failures with the copper collars. On a positive note the market had already and certainly now priced in the weak H1 performance and assuming management’s guidance for the second half is accurate, production and margins will once again increase. Florence continues to advance but is largely discounted given its still 12-18 months away
https://www.investegate.co.uk/taseko-mines-limited/prn/half-year-report/20220809070000PAFD5/
Informative interview with Taseko CEO Stuart McDonald
13:16 - 17 years of reserves remaining, production stable at 130 million p/a, exploration news likely in the fall or late summer.
15:00 - hedging (put protection) part of company strategy, will remain a strategy, but plenty of leverage to upside.
16:55 - confident on moving ahead with Florence, no need for JV partner or minority stake sale thanks to Gibraltar cash flows and high copper price, permits to follow shortly (August-September).
18:30 - Successful partnership at Gibraltar, consortium of 3 Japanese companies has been a successful model for Taseko, companies looking for offtake agreements have shown similar interest at Florence and Yellowhead.
19:22 - Final EPA permit this autumn, 18 month construction and first production at Florence early 2023 (H123). First year ramp up, expect approx 50 million pounds followed by capacity rates, 85 million pounds for the next 20+ years.
21:23 - Taseko reserves are nearly 15 billion pounds copper in the ground across all assets, value for Florence not appreciated by market and currently nothing assigned for Yellowhead, New Prosperity and Alley. Market yet to recognise value of pipeline of projects despite company track record. Gibraltar was acquired for $1 approx 21 years ago, developed into a world class operation. Florence, next in line, acquired in 2014 for $60m, one of the lowest capital intensity copper projects in the world with a 20 year mine life.
26:42 - Yellowhead development, 2-3 year to permit the mine, ready to move forward in 2023-24. $1 billion capex to get off the ground. By 2024 with Gibraltar and Florence producing Taseko will be "generating several hundred million dollars in EBITDA", potential to JV Florence to an offtaker, then Yellowhead becomes a very manageable project to build. Yellowhead is enormous, production equivalent to Gibraltar and Florence combined: 180-200 million pounds of copper!
When Yellowhead comes online in 5 years output doubles to 350-380 million pounds of annual copper production, Taseko would be one of the largest producers in North America.
30:02 - New Prosperity, one of the largest, undeveloped copper gold deposits in the world. No timeline owing to challenges with permitting / local community.
33:26 - Harmony and Alley, development stage projects, none core for Taseko despite potential. Alley may present new opportunities with future growth of battery market and new technologies given rare metal by products.
35:49 - Taseko not looking to initiate M&A activity in any way, organic growth of pipeline projects, huge catalyst for share price, no need for further acquisitions. Non core assets certainly open to JV or disposals.
https://www.youtube.com/watch?v=wvgfItv6-Eg
In case you missed our webinar with Taseko Mines the recording and stockopedia report can be found here: https://www.sharesoc.org/seminar/sharesoc-webinar-with-taseko-mines-ltd-tko-22-june-2021/
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We are hosting a webinar with Taseko Mines Ltd (TKO) on the 22 June, which may be of interest to current shareholders or potential investors. Stuart McDonald, President of Taseko Mines will be presenting... https://www.sharesoc.org/events/sharesoc-webinar-with-taseko-mines-ltd-tko22-june-2021/
Copper Rises With Industrial Metals as Supply Risks Buoy Rally
18 May 2021, 04:53 BST Updated on 18 May 2021, 11:34 BST
* Chile copper miners face tighter regulations, higher taxes
* Zinc surges on speculation Chinese smelters to curb output
Copper rose toward a record as the potential for tighter regulation and higher taxes in Chile fuel concerns about the long-term supply outlook. Zinc jumped amid speculation about disruptions to Chinese output.
The world’s biggest copper producer just elected an assembly that places the writing of a new constitution largely in the hands of the left wing. The makeup is likely to leave miners facing tougher rules around the environment and mineral rights, and it could add momentum to a bill that would create one of the heaviest tax burdens in the global industry. In Peru, the leading presidential candidate wants to impose a tax on copper sales.
That’s adding to concerns about tight supply at the same time demand surges. More immediately, the threat of labor disruptions continues to hang over the market after BHP Group requested a mediation process to avert a strike at a remote operations center in Santiago that serves Escondida and Spence copper mines.
Copper had stumbled with other industrial materials after climbing to a record last week as China stepped up efforts to cool the commodities surge that’s fanning fears of global inflation. Citigroup Inc. recommended buying on the dips as Beijing could “easily run out of options” to contain costs without making a U-turn in the ongoing domestic production crackdowns for environmental, energy and safety control purposes.
“We do not foresee such a U-turn any time soon given the strategic priority of these agendas,” analysts including Tracy Liao, wrote in a note. The country’s measures to rein in prices appear “temporary,” with a potential exhaustion of policy options likely resulting in another round of commodity price rallies, fueled by solid end-use global demand and continued domestic supply curbs in some commodities, they wrote.
Zinc surged to the highest since 2018 amid speculation that smelters in China’s Yunnan province are reducing output due to a power shortage, according to Li Wenchang, an analyst with researcher Mysteel. Major smelters were asked to cut power consumption by 10%, which may lead to about 10% of refined zinc capacity being cut, according to estimate from Beijing Antaike Information Development Co.
Yunnan’s monthly refined zinc output was about 75,000 tons, according to Antaike. China’s monthly output is around 600,000 tons. The Yunnan provincial development and reform commission didn’t immediately respond to a fax seeking comment.
Copper rose as much as 1.5% to $10,525 a metric ton, before trading at $10,479.50 by 11:24 a.m. on the London Metal Exchange. Zinc gained as much as 3.1% to $3,108.50 and nickel climbed 1.5%.
https://www.bloomberg.com/news/articles/2021-05-18/copper-rises-with-industrial-metals-as-sup
Results for the three months ended March 31, 2021
Highlights
EBITDA: $30.3 million and Adjusted EBITDA* of $23.7 million, which represent increases of 412% and 344%, respectively, over the first quarter of 2020.
Steadily rising copper price at its highest price in a decade sitting above US$4.50 per pound.
Florence court decision clears way for construction to begin upon receipt of final key permit.
Bonds refinanced during quarter
At current copper prices Florence project is fully funded (Gibraltar cashflow)
Q1 copper production: 22 million pounds
Q1 molybdenum production: 530 thousand pounds
100% upside on copper price despite new copper put options
Outlook
Mining of the Pollyanna pit in Q2 is expected to result in improved grades and copper production
"We expect much higher grade and production levels in the second half of the year"
H2 operating costs per pound are set to fall and earnings are forecast to increase.
Operating margins expected to be more than $200 million in remaining 9 months of 2021 (current copper prices).
Company able to fully fund Florence without a JV partner.
Draft Underground Injection Control ("UIC") Permit due in June.
Excess cashflow in years ahead including proceeds from potential Florence financing transaction to be used for debt reduction or dividends.
https://www.lse.co.uk/rns/TKO/1st-quarter-results-canzg94jep2e5pc.html
Hi GABS! Indeed it's outperforming nearly all my other mining stocks this month. Buoyant copper price with recent broker exposure as announced today beginning to have an effect. CAML out in front this year though, between the two I'd wager there's more upside here than any of the other major producers. ATYM starting to build support today as well! I saw you're also holding SQZ, the constant headache that share is. Back above 120 today so that's progress XD
Hello Shareminator, we obviously keep meeting in the same stocks! This is about as good a play as you're going to find in London on the copper surge. They have immense reserves, scope to double production in 18 months at low cost and have other assets that are globally significant. All for circa £300m mc. This is extremely cheap!
Last year generated $108m in EBITDA, which the company state "at current copper prices ... we would have generated roughly $275 million of adjusted EBITDA* in 2020."