Taseko Mines Records Q1 2015 Net Loss of $25.2 Million

Taseko Mines Ltd. (TSX:TKO,NYSEMKT:TGB) released its results for the first quarter of 2015, noting that it recorded a net loss of $25,206,000 and an adjusted net loss of $2,434,000. For Q1 2014, those figures came in at $9,148,000 and $2,710,000, respectively.

Other Q1 2015 highlights include:

• First quarter 2015 earnings from mining operations (before depletion and amortization) were $2.3 million and adjusted EBITDA was $11.2 million compared to a loss of ($0.9) million and ($8.4) million, respectively, in the fourth quarter 2014,
• Gibraltar throughput averaged 86,100 tons per day in the first quarter, above design capacity and the best performing quarter since the concentrator was upgraded.
• Total production in the first quarter was 28.4 million pounds of copper and 404 thousand pounds of molybdenum, relatively flat compared to production of 28.1 million pounds and 445 thousand pounds in the fourth quarter 2014.
• Total sales for the quarter were 25.4 million pounds of contained copper in concentrate. Inventory increased by 3.0 million pounds due to shipment timing.
• In January 2015, the Company took advantage of the weak copper price and settled all outstanding copper put options for cash proceeds of $17.4 million, resulting in a gain on derivatives of $11.8 million.
• In April 2015, the Company acquired copper put options for 30 million pounds over the second and third quarters of 2015 at a strike price of US$2.50 per pound. Total cost of these put options was US$1.1 million.
• In May 2015, an updated mine plan and reserve for Gibraltar was announced. The new plan reduces the overall strip ratio and increases profitability of the mine.

Russell Hallbauer, president and CEO of Taseko, commented:

Copper grade in the first quarter was similar to the fourth quarter, as expected, but trended higher in March to 0.240% and then to 0.260% in April. During the quarter we successfully operated our concentrators above design capacity in order to maximize production, given the lower copper grade. Mining operations have now worked through the lower grade material in the upper benches and are now progressing into higher grade ore, with the grade expected to fluctuate between 0.25%-0.28% for the balance of 2015. Copper recoveries during the first quarter were better than expected considering the lower copper grade. The increasing copper grade combined with work that has been completed on the grinding and flotation circuits in recent months is expected to result in improved recoveries going forward.

Click here to read the full Taseko Mines Ltd. (TSX:TKO,NYSEMKT:TGB) press release.