Taseko Mines Ltd. (TSX: TKO; NYSE American: TGB) reported strong production results for 2024 and unveiled a deal to increase its stake in the Gibraltar silver stream to 100%, moves aimed at boosting the company’s cash flow and balance sheet as it ramps up spending on its Florence Copper project in Arizona.
The Vancouver-based miner said copper production from its Gibraltar mine totaled 106 million pounds in 2024, while molybdenum output came in at 1.4 million pounds. Sales volumes slightly exceeded production, reaching 108 million pounds of copper and 1.4 million pounds of molybdenum, reflecting strong end-of-year sales.
Looking ahead, Taseko projected 2025 copper production between 120 million and 130 million pounds, a significant jump of up to 22% year-over-year. The company said production would be heavily weighted toward the second half of the year as it benefits from increased mill availability at Gibraltar.
“Since completing major maintenance work in July, our Gibraltar milling operations have been running smoothly,” said Stuart McDonald, Taseko’s president and CEO. “We averaged more than 89,000 tons of throughput per day in the fourth quarter — 5% above design capacity — which contributed to strong copper output of 29 million pounds for the quarter.”
Silver Stream Deal Secures Full Ownership
In a move aimed at strengthening its cash position, Taseko said it had amended its silver stream agreement with Osisko Gold Royalties, raising its attributable silver percentage from 87.5% to 100%. In exchange, the company received an additional cash payment of $12.7 million from Osisko.
The silver stream amendment follows Taseko’s acquisition of the remaining 12.5% interest in the Gibraltar joint venture last March, making Gibraltar a wholly owned asset.
“The silver stream agreement strengthens our balance sheet during a critical period of construction at Florence Copper,” McDonald said.
The Florence Copper project is expected to be a key growth driver for Taseko. Once fully operational, the in-situ copper recovery project is projected to produce 85 million pounds of copper annually, with lower capital costs and environmental impacts compared to traditional open-pit mining.
2025 Production Outlook
Taseko’s updated guidance points to higher copper output in 2025, driven by improved mill performance at Gibraltar. The company expects throughput rates to remain above design capacity for much of the year.
“We are well-positioned for a strong year of production,” McDonald said. “With Gibraltar running efficiently and Florence Copper progressing toward commercial production, Taseko is entering a period of meaningful growth.”
However, the company cautioned that production will be weighted to the second half of 2025, as planned maintenance is scheduled for the early part of the year.
Boost to Cash Flow Amid Higher Spending
The company said the additional cash from the silver stream deal will help offset increased construction spending at Florence Copper, where major capital investments are planned for 2025.
Taseko’s balance sheet has been under pressure from rising costs associated with Florence Copper, which remains the company’s top growth priority. The latest silver deal brings immediate cash proceeds and secures future revenue from Gibraltar’s silver production, providing a buffer during the construction phase.
