Taseko Mines Updates Status of Copper Price Protection Program
TASEKO MINES UPDATES STATUS OF COPPER PRICE
PROTECTION PROGRAM
VANCOUVER, BC
,
July 7, 2022
/CNW/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or
the "Company") is pleased to announce that copper collars for the first half of 2023 have been acquired to secure a minimum
copper price of
US$3.75
per pound and a ceiling price of
US$4.72
per pound for 30 million pounds of copper. This collar was
purchased in mid-June when the price of copper was approximately
US$4.20
per pound.
These new collars extend the price protection that is in place for the current year, which secures a minimum copper price of
US$4.00
per pound for 42 million pounds over the second half of 2022. At recent copper prices, the current outstanding
contracts will provide approximately
C$45 million
of additional cash flow over the next year.
Stuart McDonald
, Taseko's President and CEO, commented, "We have consistently used a price protection strategy for over
ten years to protect our balance sheet from sudden downward moves in the copper price, like we have seen over the last
month. With this price protection in place, and with the improvements in head grades and copper production from
Gibraltar
that we expect in the second half of this year, our balance sheet will remain strong as we prepare for construction of our
Florence Copper Project," concluded Mr. McDonald.
Stuart McDonald
President and CEO
No regulatory authority has approved or disapproved of the information contained in this news release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" that were based on Taseko's expectations, estimates and projections as
of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the
Company's actual results, level of activity, performance or achievements to be materially different from those expressed or
implied by such forward-looking statements. These included but are not limited to:
uncertainties about the future market price of copper and the other metals that we produce or may seek to produce;
changes in general economic conditions, the financial markets, inflation and interest rates and in the demand and market
price for our input costs, such as diesel fuel, reagents, steel, concrete, electricity and other forms of energy, mining
equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar,
and the continued availability of capital and financing;
uncertainties resulting from the war in
Ukraine
, and the accompanying international response including economic sanctions
levied against
Russia
, which has disrupted the global economy, created increased volatility in commodity markets
(including oil and gas prices), and disrupted international trade and financial markets, all of which have an ongoing and
uncertain effect on global economics, supply chains, availability of materials and equipment and execution timelines for
project development;
uncertainties about the continuing impact of the novel coronavirus ("COVID-19") and the response of local, provincial,
state, federal and international governments to the ongoing threat of COVID-19, on our operations (including our
suppliers, customers, supply chains, employees and contractors) and economic conditions generally including rising
inflation levels and in particular with respect to the demand for copper and other metals we produce;
inherent risks associated with mining operations, including our current mining operations at
Gibraltar
, and their potential
impact on our ability to achieve our production estimates;
uncertainties as to our ability to control our operating costs, including inflationary cost pressures at
Gibraltar
without
impacting our planned copper production;
the risk of inadequate insurance or inability to obtain insurance to cover material mining or operational risks;
uncertainties related to the feasibility study for Florence copper project (the "Florence Copper Project" or "Florence
Copper") that provides estimates of expected or anticipated capital and operating costs, expenditures and economic
returns from this mining project, including the impact of inflation on the estimated costs related to the construction of the
Florence Copper Project and our other development projects;
the risk that the results from our operations of the Florence Copper production test facility ("PTF") and ongoing
engineering work including updated capital and operating costs will negatively impact our estimates for current projected
economics for commercial operations at Florence Copper;
uncertainties related to the accuracy of our estimates of Mineral Reserves (as defined below), Mineral Resources (as
defined below), production rates and timing of production, future production and future cash and total costs of production
and milling;
the risk that we may not be able to expand or replace reserves as our existing mineral reserves are mined;
the availability of, and uncertainties relating to the development of, additional financing and infrastructure necessary for the
advancement of our development projects, including with respect to our ability to obtain any remaining construction
financing potentially needed to move forward with commercial operations at Florence Copper;
our ability to comply with the extensive governmental regulation to which our business is subject;
uncertainties related to our ability to obtain necessary title, licenses and permits for our development projects and project
delays due to third party opposition, particularly in respect to Florence Copper that requires one key regulatory permit
from the U.S. Environmental Protection Agency ("EPA") in order to advance to commercial operations;
our ability to deploy strategic capital and award key contracts to assist with protecting the Florence Copper project
execution plan, mitigating inflation risk and the potential impact of supply chain disruptions on our construction schedule
and ensuring a smooth transition into construction once the final permit is received from the EPA;
uncertainties related to First Nations claims and consultation issues;
our reliance on rail transportation and port terminals for shipping our copper concentrate production from
Gibraltar
;
uncertainties related to unexpected judicial or regulatory proceedings;
changes in, and the effects of, the laws, regulations and government policies affecting our exploration and development
activities and mining operations and mine closure and bonding requirements;
our dependence solely on our 75% interest in
Gibraltar
(as defined below) for revenues and operating cashflows;
our ability to collect payments from customers, extend existing concentrate off-take agreements or enter into new
agreements;
environmental issues and liabilities associated with mining including processing and stock piling ore;
labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which
we operate our mine, industrial accidents, equipment failure or other events or occurrences, including third party
interference that interrupt the production of minerals in our mine;
environmental hazards and risks associated with climate change, including the potential for damage to infrastructure and
stoppages of operations due to forest fires, flooding, drought, or other natural events in the vicinity of our operations;
litigation risks and the inherent uncertainty of litigation, including litigation to which Florence Copper could be subject to;
our actual costs of reclamation and mine closure may exceed our current estimates of these liabilities;
our ability to meet the financial reclamation security requirements for the
Gibraltar
mine and Florence Project;
the capital intensive nature of our business both to sustain current mining operations and to develop any new projects,
including Florence Copper;
our reliance upon key management and operating personnel;
the competitive environment in which we operate;
the effects of forward selling instruments to protect against fluctuations in copper prices, foreign exchange, interest rates
or input costs such as fuel;
the risk of changes in accounting policies and methods we use to report our financial condition, including uncertainties
associated with critical accounting assumptions and estimates; and Management Discussion and Analysis ("MD&A"),
quarterly reports and material change reports filed with and furnished to securities regulators, and those risks which are
discussed under the heading "Risk Factors".
For further information on Taseko, investors should review the Company's annual Form 40-F filing with the United States
Securities and Exchange Commission
www.sec.gov
and home jurisdiction filings that are available at
www.sedar.com
,
including the "Risk Factors" included in our Annual Information Form.
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SOURCE
Taseko Mines Limited
View original content:
http://www.newswire.ca/en/releases/archive/July2022/07/c4418.html
%SEDAR: 00003212E
For further information:
please see the Company's website at www.tasekomines.com or contact: Brian Bergot, Vice
President, Investor Relations - 778-373-4533 or toll free 1-877-441-4533
CO: Taseko Mines Limited
CNW 08:30e 07-JUL-22