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(Alliance News) - Shares in Taseko Mines Ltd rose on Thursday after it announced a significant increase in its copper production and a steady rise in revenue.
The Vancouver-based metals miner reported an improved performance for the first quarter driven by a 20% increase in copper production at the Gibraltar mine in British Columbia, Canada and by strong metal prices.
Taseko shares were trading 9.8% higher on Thursday afternoon at 140.00 pence.
Revenue generated in the first half to June was CAD197.7 million - around GBP113.6 million, up 18% from CAD168.1 million a year prior. While earnings from mining operations before depletion and amortisation were up 51% to CAD84.8 million, from CAD56.3 million a year ago.
Stuart McDonald, Taseko President & Chief Executive commented: "Our improved financial performance in the quarter was a result of the 20% increase in copper production at Gibraltar, and bolstered by strong copper prices which averaged USD4.40 per pound for the period."
At its 75% owned Gibraltar Mine, Taseko mined 56.9 million tonnes in the first half, 16% higher year-on-year. Milling fell slightly to 14.4 million from 15.2 million a year prior.
"With improving grades, we expect total copper production in the second half of the year to be at least 40% higher than the first half, which will lead to lower unit costs and improved margins and cash flow generation," McDonald added.
In the second quarter, copper prices rallied to record levels and are currently around USD4.31 per pound. The current copper price and Taseko's expected production growth is supportive of improved financial performance at the Gibraltar mine over the remainder of 2021, the company stated.
By Will Paige; willpaige@alliancenews.com
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