Taseko Mines Ltd (TGB) stock has decline in pre-market trading after revealing quarterly results. Pre-market data show Taseko Mines Ltd (TGB) is -6.00% lower at $1.88.
Taseko Mines Limited is a Canadian company that deals with the production of mid-tier copper. It operates Gibraltar mine which is the second-largest open-pit copper mine in Canada. TGB is also planning to operate several other mines including Prosperity mine, Harmony, and Aley.
Why is it happening?
Taseko Mines Ltd. (TGB) reported a net income of $4.4 million for the fourth quarter. Last year, the company reported a loss during that same period. The company based in Vancouver, British Columbia, said net income was 2 cents per share. Adjusted for nonrecurring gains, the losses reached 2 cents per share.
Recent and future developments
The copper market has recovered since march of 2020, the price of copper has doubled and in the end of the year, it increased to another US$0.70 per pound. It is to be believed that with the current price of copper that is now more than US$1.40 per pound which is higher than last year’s average, it was possible to generate roughly $275 million of adjusted EBTIDA in 2020. Also it is expected that in 2021 Gibraltar will produce 125 million pounds of copper which was previously 123 million pounds. Gibraltar is Taseko’s significant asset for 15 years and has been generating positive cash flow through copper price cycles.
CEO of the company says that their achievements are not just restricted to Gibraltar since they have made successful moves in Florence Copper in recent months which has reduced the risk from the project. The company has also received the state permit in December 2020 and it is also expected that they will manage to get the federal permit from EPA as well. Under the recent development in February, Company has completed a successful US$400 million bond refinancing which was upsized to provide financing for the development of the commercial facility at Florence.
Under their recently launched report the stock of the company has gone downhill. The company is trying to catch up with the market demand in 2021 but things are quite uncertain.