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Taseko Mines Limited (TSE:TKO)
TSX:TKO
Top Page
Taseko Mines
(TSX:TKO)
54Neutral
Positive Factors
Financial Performance
Taseko highlighted sufficient liquidity to complete Florence construction, with potential upside coming from the U.S. Department of Energy tax credit estimated at US$80-100M.
Project Development
Construction progress on the Florence Copper project remains on track for first production at the commercial facility, with key contractors active on site and no reportable injuries or environmental incidents.
Negative Factors
Capital Expenditures
Capital expenditures are slightly higher relative to the US$232M project cost, with expectations to be within 10-15% of the estimate.
Taseko Mines (TKO) vs. S&P 500 (SPY)
Market Cap
$865.50M
Dividend YieldN/A
Average Volume (3M)672.57K
Price to Earnings (P/E)11.1
Beta (1Y)2.24
Revenue Growth15.26%
EPS Growth-114.98%
CountryCA
Employees191
SectorBasic Materials
Sector Strength59
IndustryCopper
Share Statistics
EPS (TTM)-0.04
Shares Outstanding315,875,340
10 Day Avg. Volume509,584
30 Day Avg. Volume672,567
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.96Price Target Upside44.40% 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 makes money primarily through the extraction, production, and sale of copper and molybdenum concentrates from its mining operations. The company's key revenue stream is the Gibraltar Mine, which is one of the largest open-pit copper mines in North America. Revenue is generated by processing extracted ore to produce copper and molybdenum concentrates, which are then sold to various smelters and refineries around the world. In addition to copper and molybdenum, Taseko may also derive revenue from by-products such as gold and silver contained in the ore. The company's earnings are influenced by factors such as global commodity prices, production volumes, and operational efficiencies. Strategic partnerships with other mining companies and stakeholders, along with investment in technology and innovation, also contribute to Taseko Mines' revenue generation.
Taseko Mines Financial Statement Overview
Summary
Taseko Mines displays robust revenue growth and operational efficiency, underscored by healthy profit margins. However, high leverage and negative free cash flow highlight potential risks in financial stability and cash management. Continued focus on cost control and capital management will be crucial for sustaining growth and improving financial health.Income Statement
Taseko Mines shows a solid revenue growth trend with a TTM revenue increase of 12.9% from the previous annual report. Gross and net profit margins are healthy at 23.5% and 12.7% respectively, indicating good profitability. However, the drop in gross profit compared to the previous year suggests potential cost management issues. The EBIT and EBITDA margins are strong at 18.1% and 42.0%, respectively, showing effective operational efficiency.72
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 1.53, indicating a relatively high leverage, which is typical in the mining industry but still a risk factor. The return on equity is healthy at 15.6%, showcasing good profitability relative to shareholder equity. However, the equity ratio is only 23.5%, suggesting a high reliance on debt financing.68
Positive
Cash Flow
Operating cash flow to net income ratio is 2.6, reflecting strong cash generation relative to earnings. However, free cash flow is negative, indicating challenges in covering capital expenditures with cash generated from operations. The free cash flow growth has been negative, influenced by significant capital expenditures, which poses a potential risk to financial flexibility.60
Neutral
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 524.97M | 391.61M | 433.28M | 343.27M | 329.16M | Gross Profit |
| 207.35M | 54.23M | 163.81M | 23.73M | -39.14M | EBIT |
| 186.25M | 32.78M | 135.97M | -1.36M | -63.07M | EBITDA |
| 234.24M | 74.14M | 202.56M | 100.52M | 60.21M | Net Income Common Stockholders |
| 82.73M | -25.97M | 36.47M | -23.52M | -53.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 97.81M | 123.43M | 239.88M | 86.90M | 53.93M | Total Assets |
| 1.57B | 1.28B | 1.18B | 910.37M | 884.00M | Total Debt |
| 632.38M | 587.49M | 533.10M | 363.40M | 373.49M | Net Debt |
| 535.90M | 466.64M | 296.33M | 278.29M | 320.29M | Total Liabilities |
| 1.13B | 922.27M | 824.68M | 592.99M | 582.31M | Stockholders Equity |
| 434.15M | 356.41M | 358.52M | 317.37M | 301.69M |
| Cash Flow | Free Cash Flow | |||
| -69.74M | 1.59M | 87.04M | 40.70M | -8.11M | Operating Cash Flow |
| 151.09M | 81.27M | 174.77M | 106.19M | 42.64M | Investing Cash Flow |
| -167.60M | -166.41M | -147.71M | -59.64M | -16.93M | Financing Cash Flow |
| 40.70M | -35.24M | 125.79M | -11.94M | -16.74M |
Taseko Mines Technical Analysis
Negative
2.74
Price Trends
3.08
Negative
2.99
Negative
3.02
Negative
Market Momentum
>-0.01
Negative
40.31
Neutral
43.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TKO, the sentiment is Negative. The current price of 2.74 is below the 20-day moving average (MA) of 2.90, below the 50-day MA of 3.08, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TKO.
Taseko Mines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
TSE:TKO
Taseko Mines
2.74
-0.67
-19.65%
HBM
Hudbay Minerals
7.47
-1.04
-12.22%
LUNMF
Lundin Mining
8.47
-2.84
-25.11%
CSCCF
Capstone Copper
4.83
-2.89
-37.44%
FQVLF
First Quantum Minerals
13.68
0.25
1.86%
TSE:CAM
Cascadia Minerals Ltd
0.09
-0.12
-57.14%
Taseko Mines Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -14.91%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable progress on the Florence Copper project and strong financial liquidity being overshadowed by production challenges and a net loss. While there are positive developments, the significant production setbacks and financial loss contribute to a more cautious outlook.Q1-2025 Updates
Positive Updates
Florence Copper Project Progress
The Florence Copper project is moving forward on time and on budget, with the expectation to produce first copper before the end of the year. 88 out of 90 production wells are completed, and all critical path items are moving forward on schedule.
Strong Cash Flow and Liquidity Position
Taseko ended the quarter with CAD121 million of cash and available liquidity of CAD279 million, factoring in the undrawn revolving credit facility.
Protection Against Copper Price Volatility
Taseko has price protection for the year with collars covering the next three quarters, protecting a floor price of CAD4 per pound for most of their production.
Negative Updates
Copper Production Shortfall
Gibraltar produced 20,000,000 pounds of copper, which was about 10% lower than expected due to lower than anticipated copper recoveries and challenging ground conditions at the connector pit.
GAAP Net Loss
The company posted a GAAP net loss of CAD29 million, partly due to lower quarterly production, higher costs, and a CAD24 million unrealized derivative and fair value adjustment.
Production Guidance Revision
2025 production is expected to be approximately CAD10 million lower than previous guidance due to challenging mining conditions and delayed access to higher-grade ore.
Company Guidance
During the Taseko Mines First Quarter 2025 Earnings Conference Call, the company provided updated guidance for the fiscal year. The Florence Copper project is on track to produce its first copper before the end of the year, with 88 out of 90 production wells completed. Gibraltar produced 20 million pounds of copper in the first quarter at a C1 cost of $2.26 per pound, but production was 10% below expectations due to challenging mining conditions and oxidized ore affecting recovery rates. As a result, copper production guidance for 2025 has been reduced by CAD10 million from the previous range of CAD120 million to CAD130 million. Capitalized stripping costs were CAD38 million, and total site costs for the quarter were CAD107 million. The company ended the quarter with CAD121 million in cash and available liquidity of CAD279 million. Florence construction capital spending is nearing completion, with CAD206 million incurred to date, staying within 15% of the CAD230 million estimate.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.