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.sedar.com. Except where otherwise noted, all currency amounts are stated in Canadian dollars. Taseko's 75% owned Gibraltar Mine is located north of the City of Williams Lake in south-central British Columbia. Production volumes stated in this release are on a 100% basis unless otherwise indicated.
VANCOUVER, Aug. 8, 2012 /PRNewswire/ - Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) ("Taseko" or the "Company") reports the results for the three months ended June 30, 2012.
- Revenues for the second quarter 2012 were $74.4 million from the sale of 19.8 million pounds of copper and 271 thousand pounds of molybdenum (Taseko's 75% share).
- Total production at Gibraltar for the quarter ended March 31, 2012 was 23.9 million pounds of copper and 379 thousand pounds of molybdenum.
- On a 100% basis, capital project spending for the second quarter totalled $42.0 million.
- On May 9, 2012, Taseko signed an agreement with the Tsay Keh Dene to support the exploration program and environmental studies for the development of its Aley Niobium Project in north eastern British Columbia.
For the three months ended June 30, 2012, Taseko had gross profit of $16.0 million and adjusted net earnings of $4.0 million ( $0.02 per share). This compares to gross profit of $16.6 million and adjusted net earnings of $1.7 million ( $0.01 per share) for the three months ended June 30, 2011.Russell Hallbauer, President and CEO of Taseko commented, "By the end of the second quarter, our Gibraltar operations team made significant strides towards achieving our production targets. In July, mill throughput averaged just over 53,000 tons per operating day and copper production was approximately nine million pounds, including cathode. With further refinements, we expect to process 9.0 to 9.5 million tons of ore in the second half of 2012, inclusive of downtime associated with tie-ins for the GDP3 project." "In early July, we saw a small window of copper pricing strength and opportunistically purchased copper put options for the first half of 2013 for approximately 60% of Taseko's share of production. With a strike price of US$3.00 per pound, this hedge will secure a minimum revenue stream for the first half of 2013." Mr. Hallbauer continued, "Our GDP3 project is progressing very well and remains on time and on budget. Installation of concentrator equipment is underway and the new SAG mill shell has now been erected. Also, over and above our capital spending, we invested nearly $5 million in the quarter on our New Prosperity and Aley development projects. While this spending has an immediate earnings impact, the long-term potential rewards from these projects continue to be very encouraging. By early 2013, our expectation is that the New Prosperity environmental assessment and Aley feasibility study will both be complete." Taseko will host a conference call on Thursday, August 9, 2012 at 11:00 a.m. Eastern Time ( 8:00 a.m. Pacific) to discuss these results. The conference call may be accessed by dialing (877) 303-9079, or (970) 315-0461 internationally. Accompanying presentation slides will be available to download at tasekomines.com. Alternatively, a live and archived webcast will also be available at tasekomines.com. The conference call will be archived for later playback until August 16, 2012 and can be accessed by dialing (855) 859-2056 in Canada and the United States, or (404) 537-3406 internationally and using the passcode 99514703. No regulatory authority has approved or disapproved of the information in this news release.