This release should be read with the Company's Financial Statements and
Management Discussion & Analysis ("MD&A"), available at www.tasekomines.com and filed on www.sedar.com. Except where otherwise noted, all currency amounts are stated in
Canadian dollars. Taseko's 75% owned Gibraltar Mine is located north of
the City of Williams Lake in south-central British Columbia. Production
volumes stated in this release are on a 100% basis unless otherwise
VANCOUVER, Oct. 30, 2013 /CNW/ - Taseko Mines Limited (TSX: TKO) (NYSE:
TGB) ("Taseko" or the "Company") reports the results for the three
months ended September 30, 2013.
Earnings from mining operations (before depletion and amortization) were
Revenues for the third quarter 2013 were $66.8 million from the sale of
20.0 million pounds of copper and 110 thousand pounds of molybdenum.
Total production at Gibraltar (100%) for the third quarter was 36.7
million pounds of copper and 284 thousand pounds of molybdenum.
Operating costs of production for the third quarter declined 7% to
US$1.95 per pound, from US$2.09 per pound in the prior quarter. Total
operating costs for the third quarter, after by-product credit and
including off-property costs, were US$2.21 per pound.
In October, Taseko extended its copper hedging program by purchasing put
options for 13.5 million pounds of copper in the second quarter of 2014
at a strike price of $3.00 per pound.
For the three months ended September 30, 2013, Taseko had earnings from
mining operations (before depletion and amortization) of $19.5 million
and cash flow from operations, before changes in non-cash working
capital, of $12.9 million. This compares to earnings from mining
operations (before depletion and amortization) of $12.9 million and
cash flow from operations, before changes in non-cash working capital,
of $7.0 million for the three months ended June 30, 2013. Taseko
recorded net earnings of $0.1 million for the three months ended
September 30, 2013, which compares to a net loss of $14.7 million in
the second quarter of 2013.
Russell Hallbauer, President and CEO of Taseko commented,
"Operationally, the third quarter results met our internal expectations
and we are pleased to say that the ramp up of our new concentrator #2
is complete. The strong performance of the third quarter has continued,
with concentrator throughput averaging approximately 90,000 tons per
day for the past six weeks, exceeding design capacity. We expect the
fourth quarter will be the first quarter where the full impact of the
new concentrator is realized."
"With the copper price stabilizing above $3.00 per pound and with
Gibraltar's operating costs trending lower, we will benefit from
improved margins which will generate strong cash flows going forward.
We will use this cash to invest in our 100% owned assets in a
disciplined manner, to unlock the significant intrinsic shareholder
value of these projects. Even though we remain optimistic about the
long-term price of copper, we will continue to insure minimum revenues
through the purchase of copper put options."
Mr. Hallbauer continued, "By the end of this week, we expect the three
member panel which has been reviewing our New Prosperity Project to
issue its report. While we have no insight into the content of the
report, we believe our commitment to invest an additional $300 million
in environmental responsibility fully addresses the concerns from the
2010 review and that the project should receive the necessary
authorizations to proceed."
Taseko will host a conference call on Thursday, October 31, 2013 at
11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results.
The conference call may be accessed by dialing (877) 303-9079 in Canada
and the United States, or (970) 315-0461 internationally. Accompanying
presentation slides will be available to download at tasekomines.com.
Alternatively, the live webcast can be accessed at tasekomines.com.
The conference call will be archived for later playback until November
15, 2013 and accessed by dialing (855) 859-2056 in Canada and the
United States, or (404) 537-3406 internationally and using the passcode
President and CEO
No regulatory authority has approved or disapproved of the information
in this news release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" that were based on
Taseko's expectations, estimates and projections as of the dates as of
which those statements were made. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as "outlook", "anticipate", "project", "target", "believe",
"estimate", "expect", "intend", "should" and similar expressions.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. These included but are not limited to:
uncertainties and costs related to the Company's exploration and
development activities, such as those associated with continuity of
mineralization or determining whether mineral resources or reserves
exist on a property;
uncertainties related to the accuracy of our estimates of mineral
reserves, mineral resources, production rates and timing of production,
future production and future cash and total costs of production and
uncertainties related to feasibility studies that provide estimates of
expected or anticipated costs, expenditures and economic returns from a
uncertainties related to the ability to obtain necessary licenses
permits for development projects and project delays due to third party
uncertainties related to unexpected judicial or regulatory proceedings;
changes in, and the effects of, the laws, regulations and government
policies affecting our exploration and development activities and
mining operations, particularly laws, regulations and policies;
changes in general economic conditions, the financial markets and in the
demand and market price for copper, gold and other minerals and
commodities, such as diesel fuel, steel, concrete, electricity and
other forms of energy, mining equipment, and fluctuations in exchange
rates, particularly with respect to the value of the U.S. dollar and
Canadian dollar, and the continued availability of capital and
the effects of forward selling instruments to protect against
fluctuations in copper prices and exchange rate movements and the risks
of counterparty defaults, and mark to market risk;
the risk of inadequate insurance or inability to obtain insurance to
cover mining risks;
the risk of loss of key employees; the risk of changes in accounting
policies and methods we use to report our financial condition,
including uncertainties associated with critical accounting assumptions
environmental issues and liabilities associated with mining including
processing and stock piling ore; and
labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate mines, or environmental hazards, industrial accidents or other
events or occurrences, including third party interference that
interrupt the production of minerals in our mines.
For further information on Taseko, investors should review the Company's
annual Form 40-F filing with the United States Securities and Exchange
Commission www.sec.gov and home jurisdiction filings that are available at www.sedar.com.
SOURCE: Taseko Mines Limited
For further information:
Brian Bergot, Investor Relations - 778-373-4545, toll free 1-800-667-2114