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(Alliance News) - Taseko Mines Ltd on Friday reported a fall in third-quarter adjusted earnings as cost of sales grew even as revenue dropped from a year ago. However, the figures marked an improvement from the second quarter.
Taseko is a Vancouver-based mining company focused on North America.
In the third quarter that ended September 30, adjusted earnings before interest, tax, depreciation and amortisation dropped to CAD34.0 million from CAD76.3 million a year prior. Revenue fell 32% to CAD89.7 million from CAD132.6 million a year ago. Meanwhile, cost of sales increased by 28% to CAD84.2 million from CAD65.9 million.
Compared to the second quarter, the figures were an improvement. Adjusted Ebitda was CAD1.7 million in the second quarter, while revenue was 82.9 million. Cost of sales was CAD91.0 million.
"Strong financial performance in the third quarter was driven by a nearly 40% increase in copper production at Gibraltar. Head grades and copper production have continued to improve as mining advances deeper into the Gibraltar pit. Higher throughput due to the softer ore in the new pit also benefited production with average daily mill throughput of 89,400 tons in the third quarter. This was the highest quarterly mill throughput at Gibraltar since the expansion ten years ago, and we continue to see the potential for further increases," said Chief Executive Officer Stuart McDonald.
Taseko's Gibraltar mine, which is in south-central British Columbia, Canada, produced 28.3 million pounds of copper in the recent quarter, up 37% from the second quarter.
"Head grades improved over the first half of the year to 0.22% but still were impacted by higher than normal mining dilution. Grades are expected to continue improving into the fourth quarter as mining advances deeper into the Gibraltar pit, and a number of initiatives are underway to reduce the above normal mining dilution being experienced in this pit," Taseko added.
Regarding its Florence copper project in the US state of Arizona, Taseko expects construction to be underway in 2023 as it is "looking for a market opportunity to extend our put position into the second half of 2023," CEO McDonald said.
Taseko shares rose 6.7% to 104.00 pence each in London on Friday morning.
By Tom Budszus; tombudszus@alliancenews.com
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