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Taseko Mines Limited (TSE:TKO)
TSX:TKO
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Taseko Mines
(TSX:TKO)
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Rating:61Neutral
Price Target:
C$6.50
▲(19.71% Upside)
Taseko Mines' overall stock score is driven by strong technical momentum, despite financial challenges. The company's operational progress and project advancements provide some optimism, but high leverage and negative profitability weigh heavily on the valuation. The technical indicators suggest potential for short-term gains, but caution is advised due to overbought conditions.
Positive Factors
Operational Efficiency
Improved mining rates at Gibraltar indicate enhanced operational efficiency, which can lead to better cost management and increased production capacity, supporting long-term revenue growth.
Project Advancements
The nearing completion of the Florence project signifies a potential new revenue stream, enhancing Taseko's production capabilities and diversifying its asset base, which is crucial for long-term growth.
Strategic Agreements
Securing the New Prosperity Agreement provides financial support and reflects successful strategic negotiations, strengthening Taseko's financial position and enabling further project investments.
Negative Factors
High Leverage
High leverage can constrain financial flexibility and increase risk, potentially impacting Taseko's ability to invest in growth opportunities or weather economic downturns.
Decreased Free Cash Flow
A significant decrease in free cash flow suggests potential liquidity challenges, which could limit Taseko's ability to fund operations, repay debt, or invest in growth initiatives.
Profitability Challenges
Ongoing profitability challenges, as evidenced by recent losses, may hinder Taseko's ability to generate shareholder value and reinvest in business operations, affecting long-term sustainability.
Taseko Mines (TKO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$1.72B
Dividend YieldN/A
Average Volume (3M)788.47K
Price to Earnings (P/E)11.1
Beta (1Y)2.07
Revenue Growth0.10%
EPS Growth-135.33%
CountryCA
Employees191
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)-0.04
Shares Outstanding316,764,100
10 Day Avg. Volume971,892
30 Day Avg. Volume788,471
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.64
Price to Sales (P/S)1.36
P/FCF Ratio5.53
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue3.59
Enterprise Value/Gross Profit27.54
Enterprise Value/Ebitda17.33
Forecast
1Y Price Target
$5.88Price Target Upside8.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Taseko Mines Business Overview & Revenue Model
Company DescriptionTaseko Mines Limited, a mining company, acquires, develops, and operates mineral properties. The company explores for copper, molybdenum, gold, niobium, and silver deposits. It holds 75% interest in the Gibraltar mine located in British Columbia. It also holds 100% interest in Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project located in British Columbia; and the Florence copper project located in Arizona. The company was incorporated in 1966 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyTaseko Mines generates revenue primarily through the sale of copper and molybdenum concentrates produced at its Gibraltar Mine. The company sells these concentrates to various customers, including smelters and refiners, under long-term contracts and spot market transactions. In addition to copper and molybdenum, Taseko explores other potential revenue streams by developing various projects, such as the Florence Copper Project in Arizona, which aims to produce copper through in-situ recovery methods. The company's revenue is influenced by global copper prices, operational efficiency, and production levels. Strategic partnerships with other mining entities and investments in exploration activities also contribute to Taseko’s earnings potential.
Taseko Mines Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational progress with improved mining rates and significant project advancements at Florence. However, financial performance was mixed, with higher costs, lower sales, and an adjusted earnings loss. The New Prosperity and Yellowhead projects show promising potential, but short-term operational challenges remain.Q2-2025 Updates
Positive Updates
Improved Mining Rates at Gibraltar
Mining rates at Gibraltar increased by 31% from Q1, achieving the best mining quarter in the last four years with a total of 30 million tons mined.
Florence Project Nearing Completion
The Florence project has reached over 90% completion with activities shifting to commissioning. The initial injection of solutions is targeted for September, with first copper cathode expected before year's end.
Strong Financial Position
Taseko ended the quarter with a cash balance of $122 million and total liquidity of just under $200 million, including a $75 million payment from the BC government.
Positive Developments in New Prosperity and Yellowhead Projects
The New Prosperity Agreement was reached with a $75 million payment from BC. The Yellowhead project announced improved economics with an NPV of CAD 2 billion at $4.25 copper.
Negative Updates
Higher Costs and Lower Sales
Total cash costs at Gibraltar were $3.14 per pound due to lower capitalized stripping and lower moly production. Sales totaled 19 million pounds, contributing to lower revenue.
SX/EW Plant Downtime
A transformer issue at the Gibraltar SX/EW plant led to downtime expected for 6 to 8 weeks, impacting production by less than 1 million pounds.
Adjusted Earnings Loss
Taseko posted an adjusted net loss of $13 million or $0.04 loss per share, impacted by lower production and sales volumes.
Company Guidance
During the Taseko Mines 2025 Second Quarter Earnings Conference Call, the company provided several key metrics and guidance on their operations and projects. At the Gibraltar mine, mining tonnages increased by 31% from Q1 to reach 30 million tons in Q2, marking the best mining quarter in four years, with copper production holding steady at 20 million pounds and copper grades and recoveries expected to improve significantly in the second half. The total cash costs (C1) reported for copper were $3.14 per pound, with expectations for a decline as production levels rise. At the Florence project, construction is over 90% complete, with a total of USD 239 million incurred and the project expected to produce first copper cathode before the end of the year. The New Prosperity Agreement secured a $75 million cash payment from BC, and the Yellowhead project reported an NPV of CAD 2 billion at $4.25 copper. Overall, Taseko is advancing smoothly towards commissioning at Florence and anticipates improved operational performance at Gibraltar.Taseko Mines Financial Statement Overview
Summary
Taseko Mines shows moderate financial health with strengths in operating cash flow and a stable equity base. However, challenges persist with profitability and leverage, as indicated by negative net income and a high debt-to-equity ratio. Revenue trends show growth but recent declines highlight volatility.Income Statement
Taseko Mines shows moderate revenue growth over the years with a TTM revenue decline from the previous annual figure. The net profit margin is negative due to consistent net losses, indicating profitability issues. Gross profit margin exhibits some stability, though it has declined recently. The company struggles with profitability as reflected in negative net income and declining EBIT and EBITDA margins.45
Neutral
Balance Sheet
The balance sheet shows moderate stability with a consistent equity base. The debt-to-equity ratio remains relatively high, suggesting leverage risk. Return on equity has been negative recently due to net losses. The equity ratio is stable but indicates moderate reliance on debt financing.50
Neutral
Cash Flow
Taseko Mines has a robust operating cash flow, though free cash flow has been inconsistent. The operating cash flow to net income ratio is high, indicating strong cash generation relative to reported earnings. However, free cash flow has diminished recently, highlighting potential challenges in capital management.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 578.65M | 608.09M | 524.97M | 391.61M | 433.28M | 343.27M |
| Gross Profit | 75.50M | 117.16M | 207.35M | 54.23M | 163.81M | 23.73M |
| EBITDA | 119.95M | 170.94M | 233.23M | 71.62M | 176.63M | 97.88M |
| Net Income | -28.08M | -13.44M | 82.73M | -25.97M | 36.47M | -23.52M |
Balance Sheet | ||||||
| Total Assets | 2.26B | 2.20B | 1.57B | 1.28B | 1.18B | 910.37M |
| Cash, Cash Equivalents and Short-Term Investments | 123.57M | 173.63M | 97.81M | 123.43M | 239.88M | 86.90M |
| Total Debt | 824.03M | 790.57M | 632.38M | 586.57M | 533.10M | 363.40M |
| Total Liabilities | 1.70B | 1.69B | 1.13B | 922.27M | 824.68M | 592.99M |
| Stockholders Equity | 559.93M | 503.22M | 434.15M | 356.41M | 358.52M | 317.37M |
Cash Flow | ||||||
| Free Cash Flow | 76.02M | 149.48M | 33.16M | 1.59M | 87.04M | 40.70M |
| Operating Cash Flow | 220.18M | 232.62M | 151.09M | 81.27M | 174.77M | 106.19M |
| Investing Cash Flow | -448.66M | -317.89M | -167.60M | -166.41M | -147.71M | -59.64M |
| Financing Cash Flow | 147.93M | 157.16M | -7.05M | -35.24M | 125.79M | -11.94M |
Taseko Mines Technical Analysis
Neutral
5.43
Price Trends
5.05
Positive
4.61
Positive
3.80
Positive
Market Momentum
0.23
Positive
45.89
Neutral
15.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TKO, the sentiment is Neutral. The current price of 5.43 is below the 20-day moving average (MA) of 5.76, above the 50-day MA of 5.05, and above the 200-day MA of 3.80, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 45.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TKO.
Taseko Mines Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$1.09B | 5.60 | 21.64% | ― | 64.90% | ― | |
76 Outperform | $436.03M | 19.85 | 14.89% | 4.44% | 16.16% | 35.46% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $1.72B | 11.15 | -5.19% | ― | 0.10% | -135.33% | |
53 Neutral | C$554.53M | ― | -5.68% | ― | ― | 12.55% | |
43 Neutral | C$1.33B | ― | -14.89% | ― | ― | -104.57% | |
39 Underperform | C$242.19M | 70.51 | 4.21% | ― | ― | -41.70% |
* Basic Materials Sector Average
TSE:TKO
Taseko Mines
5.43
2.11
63.55%
TSE:ARG
Amerigo Resources
2.70
1.01
59.86%
TSE:MARI
Marimaca Copper
11.19
6.99
166.43%
TSE:III
Imperial Metals
6.12
3.98
185.98%
TSE:LA
Los Andes Copper
8.20
-0.15
-1.80%
TSE:ASCU
Arizona Sonoran Copper Co.
3.12
1.62
108.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.