VANCOUVER, April 16 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE Amex:
TGB) ("Taseko" or the "Company") is pleased to announce that it has
established a hedging program for approximately 50% of targeted copper
production to the end of 2009 from its wholly-owned Gibraltar Mine.
The Company used a producer put and call option - a zero premium cost
strategy. Approximately 30 million pounds of copper has been hedged with a
price range of US$1.88 - US$2.36 per pound. Under the hedging program, Taseko
will receive the prevailing market copper price while within the price range.
Should the market price be outside the price range, Taseko will receive a
minimum of US$1.88 and a maximum of US$2.36 for the hedged copper. The
remaining estimated 30 million pounds of production is unhedged.
Russell Hallbauer, President and CEO of Taseko stated, "Even though the
price of copper has increased considerably over the past three months, there
remains uncertainty with the world economic outlook. Given this recent pricing
strength, we believe it is timely to initiate a hedging strategy that will
preserve profitability for Taseko in the event of a copper price retraction,
while maintaining upside potential on the 50% of our production that remains
Mr. Hallbauer continued, "With Gibraltar's total cash costs of
approximately US$1.15 per pound and a minimum hedge price of US$1.88 per pound
on 50% of our production for the next eight months, we will continue our plans
to complete the Phase II capital expansion at Gibraltar. After the completion
of this phase, Gibraltar's annual production is expected to reach 115 million
pounds of copper and one million pounds of molybdenum."
President and CEO
No regulatory authority has approved or disapproved of the
information in this news release.
Forward Looking Statements
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements. Although
the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include capital market conditions, commodities market prices,
exploitation and exploration successes, lack of continuity of mineralization,
completion of the mill upgrade on time estimated and at scheduled cost,
continued availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking statements.
For more information on the Company, Investors should review the Company's
annual Form 40-F filing with the United States Securities and Exchange
Commission or the Company's home jurisdiction filings at www.sedar.com.
For further information:
For further information: Brian Bergot, Investor Relations, (778)
373-4545, toll free 1-800-667-2114