Taseko Climbs on Copper-Hedge News
NEW YORK (
) --
Taseko Mines
(TGB) - Get Report
has extended its copper production hedging program in an effort to manage its operating margins effectively amid volatile copper markets.
The markets appear to be applauding the news today, sending shares in Taseko up by 3.8% to $4.42.
Taseko says that it recently extended its hedging program for about 50% of targeted copper production to the end of 2010 from its wholly-owned Gibraltar Mine. The mining and mineral exploration company says that about 23 million pounds of forward copper production, from June 2010 to December 2010, has been hedged at a price range of $2.50 to $3.95 per pound.
Taseko says that under the hedging program, the company will receive the prevailing market copper price while within the price range; and if the market price is outside the stated price range, Taseko will receive a minimum of $2.50 and a maximum of $3.95 per pound for the hedged copper.
The remaining production from Gibraltar is un-hedged.
"When the copper price strengthened to recent highs, we felt it was an opportune time to extend our price protection," Taseko's chief executive Russell Hallbauer said in a statement. "To be able to guarantee a minimum copper price of $2.50 per pound on half of Gibraltar's production, while keeping upside to $3.95 per pound, is a prudent business decision for Taseko."
-- Reported by Andrea Tse in New York
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