VANCOUVER, Feb. 1 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE Amex: TGB) ("Taseko" or the "Company") is pleased to announce that the Company has recently extended its hedging program for approximately 50% of targeted copper production to the end of 2010 from its wholly-owned Gibraltar Mine.
Consistent with the Company's existing strategy to manage its operating margins effectively in volatile copper markets, a producer put and call option was used. Approximately 23 million pounds of forward copper production, from June 2010 to December 2010, has been hedged at a price range of US$2.50 - US$3.95 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$2.50 and a maximum of US$3.95 per pound for the hedged copper. Remaining production from Gibraltar is unhedged.
Russell Hallbauer, President and CEO of Taseko stated, "When the copper price strengthened to recent highs, we felt it was an opportune time to extend our price protection. To be able to guarantee a minimum copper price of $2.50 per pound on half of Gibraltar's production, while keeping upside to $3.95 per pound, is a prudent business decision for Taseko."
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.
SOURCE Taseko Mines Limited
For further information: For further information: Brian Bergot, Investor Relations - (778) 373-4545, toll free 1-800-667-2114