Taseko Reports First Quarter 2025 Earnings
Taseko Reports First Quarter 2025 Earnings
This release should be read with the Company’s Financial Statements and Management Discussion & Analysis ("MD&A"),
available at www.tasekomines.com and filed on www.sedarplus.com . Except where otherwise noted, all currency
amounts are stated in Canadian dollars. Taseko owns 100% of the Gibraltar Mine, which is located north of the City of
Williams Lake in south-central British Columbia.
VANCOUVER, British Columbia, May 01, 2025 -- Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO)
("Taseko" or the "Company") reports first quarter 2025 Adjusted EBITDA* of $34 million and Earnings from mining operations
before depletion and amortization and non-recurring items* of $39 million. Revenues for the first quarter were $139 million from
the sale of 22 million pounds of copper and 364 thousand pounds of molybdenum. The Company recorded a Net loss of $29
million ($0.09 loss per share) and an Adjusted net loss* of $7 million ($0.02 loss per share).
Gibraltar produced 20 million pounds of copper and 336 thousand pounds of molybdenum in the first quarter at Total operating
costs (C1) of US$2.26 per pound of copper produced. Mill throughput averaged 87,800 tons per day, which was above design
capacity. Copper grades in the quarter averaged 0.19% and copper recoveries were 68%.
At Florence Copper, construction remains on schedule and as of the end of March the overall project completion was at 78%.
Construction of the SX/EW plant, surface infrastructure and the wellfield drilling are tracking to plan. In the wellfield, drilling is
nearly complete and the last two wells will be constructed in May. The electrowinning crane has been installed in the plant,
allowing the building structure to be completed. Construction of surface infrastructure is also advancing on schedule, including
work on the pipe corridor, electrical substation, tank farm, and office and dry buildings.
Stuart McDonald, President and CEO of Taseko, commented, “Through the first 15 months of construction at Florence
Copper, all critical aspects of the project remain on schedule and our operating plans are well developed. In the coming
months, site construction activities will begin to slow down and in the fall we expect to commence wellfield operations as we
advance towards first copper cathode production later in the year. Our project team remains focussed on continued execution
of the remaining construction activities, and our growing operations team is planning for the production ramp up in 2026.”
“At our Gibraltar mine, mill throughput exceeded design capacity in the first quarter and head grades were in line with plan.
But copper production in the quarter was impacted by lower than expected metallurgical recoveries from oxidized ore. Also,
challenging ground conditions at the top of the current Connector pit pushback have led to lower mining productivities in recent
months which will delay the release of higher-grade ore from the second quarter to the third quarter. As a result, copper
production for 2025 is expected to be about 10 million pounds (~8%) lower than our previous guidance. Significantly higher
grades and recoveries are expected in the second half of this year and into 2026”, continued Mr. McDonald.
Mr. McDonald concluded, “With less than nine months until the startup of Florence Copper, America’s next copper mine,
Taseko is approaching a period of significant production and cashflow growth. We are uniquely positioned as the North
American copper producer with both near-term production growth and a longer-term growth pipeline.”
*Non-GAAP performance measure. See end of news release.
First Quarter Review
• Earnings from mining operations before depletion, amortization and non-recurring items* was $38.8 million, Adjusted
EBITDA* was $34.4 million and cash flows from operations was $55.9 million;
• GAAP net loss was $28.6 million ($0.09 loss per share) and Adjusted net loss* was $6.9 million ($0.02 loss per share);
• Gibraltar produced 20.0 million pounds of copper at a total operating cost (C1)* of US$2.26 per pound of copper
produced. Copper head grade was 0.19% and recovery was 68% for the quarter reflecting the milling of lower grade
stockpiled material which contained more oxidized material;
• Gibraltar sold 21.8 million pounds of copper and 364 thousand pounds of molybdenum. The average realized copper
price of US$4.24 per pound and Canadian dollar to US dollar exchange rate of 1.43, contributed to revenues of $139.1
million for the period;
• Construction of the Florence Copper commercial production facility is advancing on schedule and on budget, and was
approximately 78% complete at March 31, 2025. A total of 29 production wells were constructed in the quarter bringing
the total number of completed wells to 80 of the 90 planned to be drilled during the construction phase. Wellfield drilling
activities are ramping down in April and will be completed on schedule in May. The solvent extraction and
electrowinning areas continue to advance with a focus on pipe and settler welding and electrical installation. First
copper cathode production is expected in the fourth quarter of 2025;
• The Company completed share issuances under its at-the-market (“ATM”) equity offering prospectus, issuing 10.6
million common shares for gross proceeds of $31.0 million (US$21.5 million) in the first quarter;
• The Company has copper collar contracts to secure a minimum copper price of US$4.00 per pound for 81 million
pounds of copper for the remainder of 2025; and
• At March 31, 2025, the Company had a cash balance of $121 million and available liquidity of $279 million including its
undrawn corporate revolving credit facility.
*Non-GAAP performance measure. See end of news release.
Highlights
Operating data
Three months ended
March 31,
(Gibraltar – 100% basis) 2025 2024 Change
Tons mined (millions) 23.2 22.8 0.4
Tons milled (millions) 7.9 7.7 0.2
Production (million pounds Cu) 20.0 29.7 (9.7)
Sales (million pounds Cu) 21.8 31.7 (9.9)
Financial data Three months ended
March 31,
($ in thousands, except for per share amounts) 2025 2024 Change
Revenues 139,149 146,947 (7,798)
Cash flows from operations 55,892 59,574 (3,682)
Net (loss) income (28,560) 18,896 (47,456)
Per share – basic (“EPS”) $ (0.09) $ 0.07 $ (0.16)
Earnings from mining operations before depletion, amortization and non-
recurring items* 38,791 52,797 (14,006)
Adjusted EBITDA* 34,391 49,923 (15,532)
Adjusted net (loss) income* (6,943) 7,728 (14,671)
Per share – basic (“Adjusted EPS”)* $ (0.02) $ 0.03 $ (0.05)
On March 25, 2024, the Company completed its acquisition of the remaining 50% interest in Cariboo Copper Corp. (“Cariboo”)
from Dowa Metals & Mining Co., Ltd. (“Dowa”) and Furukawa Co., Ltd. (“Furukawa”) increasing its effective interest in Gibraltar
from 87.5% to 100%. As a result, the financial results reported in this MD&A reflect the Company’s 87.5% effective interest
for the period from March 15, 2023 to March 25, 2024 and 100% effective interest thereafter. For more information on the
Company’s acquisition of Cariboo, refer to the Financial Statements—Note 12.
*Non-GAAP performance measure. See end of news release.
Review of Operations
Gibraltar mine
Operating data (100% basis) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
Tons mined (millions) 23.2 24.0 23.2 18.4 22.8
Tons milled (millions) 7.9 8.3 7.6 5.7 7.7
Strip ratio 4.6 1.9 1.2 1.6 1.7
Site operating cost per ton milled* $ 8.73 $ 12.18 $ 14.23 $ 13.93 $ 11.73
Copper concentrate
Head grade (%) 0.19 0.22 0.23 0.23 0.24
Copper recovery (%) 67.5 78.2 78.9 77.7 79.0
Production (million pounds Cu) 20.0 28.6 27.1 20.2 29.7
Sales (million pounds Cu) 21.8 27.4 26.3 22.6 31.7
Inventory (million pounds Cu) 2.3 4.1 2.9 2.3 4.9
Molybdenum concentrate
Production (thousand pounds Mo) 336 578 421 185 247
Sales (thousand pounds Mo) 364 607 348 221 258
Per unit data (US$ per Cu pound
produced)
Site operating cost* $ 2.41 $ 2.52 $ 2.91 $ 2.88 $ 2.21
By-product credit* (0.33) (0.42) (0.25) (0.26) (0.17)
Site operating cost, net of by-
product credit* 2.08 2.10 2.66 2.62 2.04
Off-property cost* 0.18 0.32 0.26 0.37 0.42
Total operating cost (C1)* $ 2.26 $ 2.42 $ 2.92 $ 2.99 $ 2.46
Operations Analysis
In the first quarter, mining activity at Gibraltar was focused on waste stripping for a new pushback in the Connector pit, which
resulted in a higher than normal strip ratio and lower mined ore in the period. Lower grade stockpiled ore was the primary
source of mill feed, resulting in lower copper production compared to recent quarters.
Gibraltar produced 20.0 million pounds of copper in the first quarter and copper head grade was 0.19%, well below average
reserve grade. Copper recovery was 68% and was notably impacted by oxidation in the stockpiled ore which mainly originated
from the upper benches of the Connector pit. Mill throughput was 7.9 million tons in the quarter, above nameplate capacity
due to the lower work index ore in the Connector pit.
A total of 23.2 million tons were mined in the first quarter comparable to recent quarters. The average strip ratio was 4.6, as a
total of 4.2 million tons of ore were mined. This includes 2.2 million tons of oxide ore that was added to the heap leach pads
as plans for restart of the solvent extraction and electrowinning (“SX/EW”) plant continue in Q2 2025.
*Non-GAAP performance measure. See end of news release.
Operations Analysis - Continued
Capitalized stripping totaling $38.1 million was higher in the first quarter attributed to greater mining of waste tons above the
average strip ratio for the Connector pit. Total site costs* including capitalized stripping was $107.0 million in the quarter
consistent with the comparative prior year quarter. Decreased consumption of mining inputs such as diesel and explosives
due to processing of stockpile material as well as lower diesel prices were offset by higher milling costs.
Molybdenum production was 336 thousand pounds in the first quarter compared to 247 thousand pounds in the comparative
prior year quarter. Higher molybdenum grades, on average, are expected in Connector pit ore. Grades will improve as
stockpile ore feed decreases. At an average molybdenum price of US$20.53 per pound for the quarter, molybdenum
contributed a meaningful by-product credit of US$0.33 per pound of copper produced.
Off-property costs were US$0.18 per pound of copper produced. These lower costs reflect Gibraltar’s 2025 offtake agreements
with very favorable treatment and refining charges (“TCRC”). On a blended basis, TCRCs are effectively nil for this year.
Total operating cost (C1)* was US$2.26 per pound of copper produced in the first quarter compared to US$2.46 in the
comparative prior year quarter. Higher capitalized stripping costs, improved molybdenum by-product credits, and lower off
property costs all contributed to driving down total operating cost (C1), partially offset by the effect of lower copper production
as shown in the bridge graph below:
https://www.globenewswire.com/NewsRoom/AttachmentNg/9f3402ff-ad47-4f4b-9681-3c1f27945454
Gibraltar Outlook
Mining activities are now focused in the Connector pit, which will be the source of mill feed in 2025 and the years ahead.
Copper production in the first quarter was approximately 10% below expectations, due to low recoveries from oxidized ore. In
addition, mining rates in the upper benches of Connector pit have been behind plan due to challenging ground conditions
resulting in lower equipment productivities. As a result, access to higher quality ore has been delayed from the second
quarter to the third quarter, and annual copper production for 2025 is expected to be approximately 10 million pounds below
the previous guidance of 120 to 130 million pounds. Significant increases in head grades and recoveries are expected in the
second half of 2025 and continuing into 2026.
*Non-GAAP performance measure. See end of news release.
Gibraltar Outlook - Continued
Increased mill availability and higher throughput is also expected this year, as major maintenance projects were completed in
both mills last year. Refurbishment of the Gibraltar SX/EW plant, which has been idle since 2015, is nearing completion, with
first cathode production expected in the second quarter, supplementing Gibraltar copper concentrate production.
Molybdenum production is forecast to increase in 2025 as molybdenum grades are expected to be notably higher as more
Connector pit ore is processed, also weighted to the second half of the year.
The Company has offtake agreements covering Gibraltar concentrate production in 2025 and 2026, which contain significantly
lower, and in certain cases negative (premium), TCRC rates reflecting the tightening copper smelting market. In 2024, TCRCs
accounted for approximately US$0.09 per pound of off-property costs, and, with the new offtake agreements, the Company
expects average TCRCs to reduce to nil in 2025 and 2026.
Potential US import tariffs are not expected to have a material impact on sales at Gibraltar as the mine produces copper and
molybdenum concentrates that are sold to international metal traders and delivered to Asian markets. Offtake agreements are
in place for substantially all of Gibraltar’s copper concentrate production in 2025 and 2026, and no changes to these sales
channels are expected during this period.
The Company has a prudent hedging program in place to protect a minimum copper price and Gibraltar cash flow during the
Florence Copper construction period. Currently, the Company has copper collar contracts in place that secure a minimum
copper price of US$4.00 per pound for 81 million pounds of copper production for the remainder of 2025 (refer to “Financial
Condition Review—Hedging Strategy” for details).
Florence Copper
The Company has all key permits in place for the commercial production facility at Florence and construction of the Florence
Copper commercial production facility continues to advance on schedule. Approximately 670,000 project hours have been
worked with no reportable injuries or environmental incidents. The Company has a fixed-price contract with the general
contractor for construction of the SX/EW plant and associated surface infrastructure.
A total of 80 production wells out of a total of 90 new wells to be drilled during the construction phase have been completed as
of March 31, 2025. Process ponds and surface water runoff pond construction are complete, and installation of high-density
polyethylene piping in the main pipeline corridor continued. Mechanical and piping installations throughout the SX/EW plant
and electrical work continue to advance. Assembly of the modular office and dry buildings were also completed, and work on
the exterior finishing has started.
Site activities are focused on hiring additional personnel and other initiatives to support operational readiness and the ramp up
of production.
Florence Copper - Continued
Florence Copper capital spend
(US$ in thousands)
Three months
ended
March 31,
2025
Commercial facility construction costs 51,364
Site and PTF operations 6,069
Total Florence Copper capital spend 57,433
Florence Copper commercial facility construction costs were US$51.4 million in the first quarter and, since the beginning of
construction, US$206.3 million has been incurred on the Florence Copper commercial facility as of March 31, 2025.
In January 2025, the Company received its final US$10 million instalment from its US$50 million copper stream with Mitsui &
Co. (U.S.A.) Inc. (“Mitsui”). The remaining Florence Copper commercial production facility construction costs are expected to
be funded from the Company’s available liquidity and cash flows from Gibraltar.
The Company has a technical report titled “NI 43-101 Technical Report Florence Copper Project, Pinal County, Arizona” dated
March 30, 2023 (the “Florence 2023 Technical Report”) on SEDAR+. The Florence 2023 Technical Report was prepared in
accordance with National Instrument 43-101 (“NI 43-101”) and incorporated the results of test work from the production test
facility (“PTF”) as well as updated capital and operating costs (Q3 2022 basis) for the commercial production facility.
Project highlights based on the Florence 2023 Technical Report are detailed below:
• Net present value of US$930 million (at US$3.75 copper price, 8% after-tax discount rate);
• After-tax internal rate of return of 47%;
• Payback period of 2.6 years;
• Operating costs (C1) of US$1.11 per pound of copper produced;
• Annual production capacity of 85 million pounds of LME grade A copper cathode;
• Mine life of 22 years;
• Total life of mine production of 1.5 billion pounds of copper; and
• Initial capital cost of US$232 million (Q3 2022 basis).
Based on the Florence 2023 Technical Report, the estimated construction costs for the Florence Copper commercial
production facility were US$232 million and management expects that total construction costs will be within a range of 10% to
15% higher than this estimate. Florence Copper remains on track for first copper cathode production in Q4 2025.
Long-term Growth Strategy
Taseko’s strategy has been to grow the company by acquiring and developing a pipeline of projects focused on copper in
North America. We continue to believe this will generate long-term returns for shareholders. Our other development projects
are located in BC, Canada.
Yellowhead copper project
The Yellowhead copper project (“Yellowhead”) is expected to produce 4.4 billion pounds of copper over a 25-year mine life.
During the first 5 years of operation, Yellowhead is expected to produce an average of 200 million pounds of copper per year.
Yellowhead also contains valuable precious metal by-products with 440,000 ounces of gold production and 19 million ounces
of silver production over the life of mine. The Yellowhead project is subject of technical report published in January 2020.
Taseko plans to publish an updated technical report on Yellowhead in 2025 using updated long-term metal price assumptions,
updated project costing, and incorporating the new Canadian tax credits available for copper mine development.
The Company is ready to enter the environmental assessment (“EA”) process and plans to submit an Initial Project
Description to formally commence the EA process with regulators in Q2 2025. The Company is focusing discussions with
regulators on developing a streamlined permitting process. Taseko also opened a Yellowhead project office in 2024 to support
ongoing engagement with local communities including First Nations.
New Prosperity copper-gold project
In late 2019, the Tŝilhqot’in Nation, as represented by the Tŝilhqot’in National Government, and Taseko entered into a
confidential dialogue, with the involvement of the Province of BC, seeking a long-term resolution to the conflict regarding
Taseko’s proposed copper-gold mine previously known as New Prosperity, acknowledging Taseko’s commercial interests and
the Tŝilhqot’in Nation’s opposition to the project.
This dialogue has been supported by the parties’ agreement, beginning December 2019, to a series of standstill agreements
on certain outstanding litigation and regulatory matters relating to Taseko’s tenures and the area in the vicinity of Teẑtan Biny
(Fish Lake).
This dialogue process has made meaningful progress in recent months and is close to completion. The Tŝilhqot’in Nation and
Taseko acknowledge the constructive nature of discussions, and the opportunity to conclude a long-term and mutually
acceptable resolution of the conflict that also makes an important contribution to the goals of reconciliation in Canada.
Conference Call and Webcast
The Company will host a telephone conference call and live webcast on Friday, May 2, 2025, at 11:00 a.m. Eastern Time
(8:00 a.m. Pacific) to discuss these results. After opening remarks by management, there will be a question-and-answer
session open to analysts and investors.
Participants can join by conference call dial-in or webcast:
Conference Call Dial-In
• Participants can dial in to the conference call; however, pre-registration is required
• To register, visit https://bit.ly/Dialin-Q12025
• Once registered, an email will be sent, including dial-in details and a unique access code required to join the live call
• Please ensure you have registered at least 15 minutes prior to the conference call start time
Webcast
•A live webcast of the conference call can be accessed at Taseko Mines | Events
• The webcast will be archived for later playback until June 2, 2025 at Taseko Mines | Events
For further information on Taseko, please see the Company's website at www.tasekomines.com or contact:
Brian Bergot, Vice President, Investor Relations – 778-373-4554, toll free 1-800-667-2114
Stuart McDonald
President & CEO
No regulatory authority has approved or disapproved of the information in this news release.
Non-GAAP Performance Measures
This MD&A includes certain non-GAAP performance measures that do not have a standardized meaning prescribed by IFRS.
These measures may differ from those used by, and may not be comparable to such measures as reported by, other issuers.
The Company believes that these measures are commonly used by certain investors, in conjunction with conventional IFRS
measures, to enhance their understanding of the Company’s performance. These measures have been derived from the
Company’s financial statements and applied on a consistent basis. The following tables below provide a reconciliation of
these non-GAAP measures to the most directly comparable IFRS measures.
Total operating cost and site operating cost, net of by-product credit
Total operating cost includes all costs absorbed into inventory, as well as transportation costs and insurance recoverable.
Site operating cost is calculated by removing net changes in inventory, depletion and amortization, insurance recoverable, and
transportation costs from cost of sales. Site operating cost, net of by-product credit is calculated by subtracting by-product
credits from site operating cost. Site operating cost, net of by-product credit per pound is calculated by dividing the aggregate
of the applicable costs by pounds of copper produced. Total operating cost per pound is the sum of site operating costs, net
of by-product credits and off-property costs divided by pounds of copper produced. By-product credit is calculated based on
actual sales of molybdenum (net of treating costs) and silver during the period divided by the total pounds of copper produced
during the period. These measures are calculated on a consistent basis for the periods presented.
(Cdn$ in thousands, unless
otherwise indicated) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
Cost of sales 122,783 134,940 124,883 108,637 122,528
Less:
Depletion and amortization (22,425) (24,641) (20,466) (13,721) (15,024)
Net change in inventories of
finished goods (2,710) 4,064 2,938 (10,462) (20,392)
Net change in inventories of ore
stockpiles (22,747) (3,698) 9,089 1,758 2,719
Transportation costs (5,984) (10,170) (8,682) (6,408) (10,153)
Site operating cost 68,917 100,495 107,712 79,804 79,678
Less by-product credits:
Molybdenum, net of treatment
costs (8,774) (16,507) (8,962) (7,071) (6,112)
Silver, excluding amortization of
deferred revenue (131) (139) (241) (144) (137)
Gold, net of refining costs (389) – – – –
Site operating cost, net of by-
product credit 59,623 83,849 98,509 72,589 73,429
Total pounds of copper produced
(thousand pounds) 19,959 28,595 27,101 20,225 26,694
Total costs per pound produced 2.99 2.94 3.63 3.59 2.75
Average exchange rate for the
period (Cdn$ / US$) 1.44 1.40 1.36 1.37 1.35
Site operating cost, net of by-
product credits
(US$ per pound) $ 2.08 $ 2.10 $ 2.66 $ 2.62 $ 2.04
Site operating cost, net of by-
product credit 59,623 83,849 98,509 72,589 73,429
Add off-property costs:
Treatment and refining costs (510) 2,435 816 3,941 4,816
Transportation costs 5,984 10,170 8,682 6,408 10,153
Total operating cost 65,097 96,454 108,007 82,938 88,398
Total operating cost (C1) (US$
per pound) $ 2.26 $ 2.42 $ 2.92 $ 2.99 $ 2.46
Non-GAAP Performance Measures - Continued
Total site costs
Total site costs include site operating costs charged to cost of sales and mining costs capitalized to property, plant and
equipment in the period. This measure is intended to capture total site operating costs incurred during the period calculated
on a consistent basis for the periods presented.
(Cdn$ in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 20241
Site operating costs 68,917 100,495 107,712 79,804 79,678
Capitalized stripping costs 38,082 1,981 3,631 10,732 16,152
Total site costs – Taseko’s share 106,999 102,476 111,343 90,536 95,830
Total site costs – 100% basis 106,999 102,476 111,343 90,536 109,520
1. Q1 2024 results reflect the Company’s 87.5% effective interest in Gibraltar for the period from January 1 to March 24,
2024 and 100% effective interest for the period from March 25 to March 31, 2024.
Adjusted net income (loss) and Adjusted EPS
Adjusted net income (loss) removes the effect of the following transactions from net income (loss) as reported under IFRS:
• Unrealized foreign currency gains and losses;
• Unrealized derivative gains and losses and fair value adjustments;
• Other operating costs;
• Call premium on settlement of debt;
• Loss on settlement of debt, net of capitalized interest;
• Bargain purchase gains on Cariboo acquisition;
• Gain on acquisition of control of Gibraltar;
• Realized gain on sale of finished goods inventory;
• Inventory write-ups fair value that was sold or processed;
• Accretion on Florence royalty obligations;
• Accretion on Cariboo consideration payable;
• Non-recurring other expenses for Cariboo adjustment; and
• Finance and other non-recurring costs of Cariboo acquisition.
Management believes these transactions do not reflect the underlying operating performance of the Company’s core mining
business and are not necessarily indicative of future operating results. Furthermore, unrealized gains and losses on derivative
instruments, changes in the fair value of financial instruments, and unrealized foreign currency gains and losses are not
necessarily reflective of the underlying operating results for the periods presented.
Non-GAAP Performance Measures - Continued
Adjusted earnings per share (“Adjusted EPS”) is Adjusted net income (loss) attributable to common shareholders of the
Company divided by the weighted average number of common shares outstanding for the period.
(Cdn$ in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024
Net loss (28,560) (21,207) (180) (10,953)
Unrealized foreign exchange loss (gain) 2,074 40,462 (7,259) 5,408
Unrealized derivative loss (gain) and fair value
adjustment 23,536 (25,514) 1,821 10,033
Other operating costs1 – 4,132 4,098 10,435
Call premium on settlement of debt – – – 9,571
Loss on settlement of debt, net of capitalized interest – – – 2,904
Realized gain on sale of inventory2 – – – 3,768
Inventory write-ups to fair value that was sold or
processed3 – 1,905 3,266 4,056
Accretion on Florence royalty obligation 2,571 3,682 3,703 2,132
Accretion on Cariboo consideration payable 664 4,543 9,423 8,399
Non-recurring other expenses for Cariboo adjustment – – – 394
Estimated tax effect of adjustments (7,228) 2,465 (6,644) (15,644)
Adjusted net (loss) income (6,943) 10,468 8,228 30,503
Adjusted EPS $ (0.02) $ 0.03 $ 0.03 $ 0.10
1. Other operating costs relate to the in-pit crusher relocation project and care and maintenance costs due to the June
2024 labour strike.
2. Realized gain on sale of inventory relates to copper concentrate inventory held at March 25, 2024 that was written-up to
fair value as part of the acquisition of control of Gibraltar, and subsequently sold. The realized portion of these gains
have been added back to Adjusted net (loss) income in the period the inventory was sold.
3. Inventory write-ups to net realizable value that was sold or processed relates to stockpile inventories that were written-
up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted net
(loss) income in the period when the inventories were sold or processed.
Non-GAAP Performance Measures - Continued
(Cdn$ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023
Net income 18,896 38,076 871 9,991
Unrealized foreign exchange loss (gain) 13,688 (14,541) 14,582 (10,966)
Unrealized derivative loss (gain) and fair value
adjustment 3,519 1,636 4,518 (6,470)
Gain on Cariboo acquisition (47,426) – – –
Gain on acquisition of control of Gibraltar1 (14,982) – – –
Realized gain on sale of inventory2 13,354 – – –
Accretion on Florence royalty obligation 3,416 – – –
Accretion on Cariboo consideration payable 1,555 – – –
Non-recurring other expenses for Cariboo adjustment 138 (916) 1,244 1,714
Estimated tax effect of adjustments 15,570 (194) (1,556) 1,355
Adjusted net income (loss) 7,728 24,061 19,659 (4,376)
Adjusted EPS $ 0.03 $ 0.08 $ 0.07 $ (0.02)
1. Gain on acquisition of control of Gibraltar relates to the write-up of copper concentrate inventory to fair value for
Taseko’s 87.5% interest in Gibraltar at March 25, 2024.
2. Realized gain on sale of inventory relates to copper concentrate inventory held at March 25, 2024 that was written-up to
fair value as part of the acquisition of control of Gibraltar, and subsequently sold. The realized portion of these gains
have been added back to Adjusted net income (loss) in the period the inventory was sold.
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is presented as a supplemental
measure of the Company’s performance and ability to service debt. Adjusted EBITDA is frequently used by securities
analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present adjusted
EBITDA when reporting their results. Issuers of “high yield” securities also present adjusted EBITDA because investors,
analysts and rating agencies considering it useful in measuring the ability of those issuers to meet debt service obligations.
Adjusted EBITDA represents net income before interest, income taxes, depreciation and amortization, and also eliminates the
impact of a number of transactions that are not considered indicative of ongoing operating performance. Certain items of
expense are added back and certain items of income are deducted from net income that are not likely to recur or are not
indicative of the Company’s underlying operating results for the reporting periods presented or for future operating performance
and consist of:
• Unrealized foreign exchange gains and losses;
• Unrealized derivative gains and losses and fair value adjustments;
• Amortization of share-based compensation expense;
• Other operating costs;
• Call premium on settlement of debt;
• Loss on settlement of debt;
• Bargain purchase gains on Cariboo acquisition;
• Gain on acquisition of control of Gibraltar;
• Realized gains on sale of finished goods inventory;
• Inventory write-ups to net realizable value that was sold or processed; and
• Finance and other non-recurring costs of Cariboo acquisition.
Non-GAAP Performance Measures - Continued
(Cdn$ in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024
Net loss (28,560) (21,207) (180) (10,953)
Depletion and amortization 22,425 24,641 20,466 13,721
Finance and accretion expenses 18,877 21,473 25,685 21,271
Finance income (1,330) (1,674) (1,504) (911)
Income tax (recovery) expense (7,980) 11,707 (200) (3,247)
Unrealized foreign exchange loss (gain) 2,074 40,462 (7,259) 5,408
Unrealized derivative loss (gain) and fair value
adjustment 23,536 (25,514) 1,821 10,033
Share-based compensation expense (recovery) 5,349 (323) 1,496 2,585
Other operating costs – 4,132 4,098 10,435
Call premium on settlement of debt – – – 9,571
Loss on settlement of debt – – – 4,646
Realized gain on sale of inventory1 – – – 3,768
Inventory write-ups to fair value that was sold or
processed2 – 1,905 3,266 4,056
Non-recurring other expenses for Cariboo acquisition – – – 394
Adjusted EBITDA 34,391 55,602 47,689 70,777
1. Realized gain on sale of inventory relates to copper concentrate inventory held at March 25, 2024 that was written-up to
fair value as part of the acquisition of control of Gibraltar and subsequently sold. The realized portion of these gains
have been added back to Adjusted EBITDA in the period the inventory was sold.
2. Inventory write-ups to net realizable value that was sold or processed relates to stockpile inventories that were written-
up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted EBITDA
in the period when the inventories were sold or processed.
(Cdn$ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023
Net income 18,896 38,076 871 9,991
Depletion and amortization 15,024 13,326 15,993 15,594
Finance and accretion expense 19,849 12,804 14,285 13,468
Finance income (1,086) (972) (322) (757)
Income tax expense 23,282 17,205 12,041 678
Unrealized foreign exchange loss (gain) 13,688 (14,541) 14,582 (10,966)
Unrealized derivative loss (gain) and fair value