NEW YORK (TheStreet) -- Shares of Taseko Mines Ltd. (TGB) are up 2.01% to $2.54 after it announced production of 38.5 million pounds of copper and 667 thousand pounds of molybdenum from the Gibraltar Mine, which are increases of 37% and 100%, respectively, for the second quarter over the same period in 2013.
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Separately, TheStreet Ratings team rates TASEKO MINES LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TASEKO MINES LTD (TGB) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, TASEKO MINES LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for TASEKO MINES LTD is rather low; currently it is at 18.73%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -8.68% is significantly below that of the industry average.
- TASEKO MINES LTD reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TASEKO MINES LTD reported poor results of -$0.18 versus -$0.05 in the prior year.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Metals & Mining industry average. The net income increased by 12.7% when compared to the same quarter one year prior, going from -$10.48 million to -$9.15 million.
- TGB's debt-to-equity ratio of 0.70 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that TGB's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.55 is high and demonstrates strong liquidity.
- You can view the full analysis from the report here: TGB Ratings Report