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Taseko Mines Limited (TSE:TKO)
TSX:TKO
Top Page
Taseko Mines
(TSX:TKO)
68Neutral
Positive Factors
Company Evaluation
The analyst rates Taseko shares 'Outperform' based on the company's leverage to copper, relatively stable operations at Gibraltar, and the potential growth from the Florence Copper project.
Financial Performance
Taseko highlighted sufficient liquidity to complete Florence construction, with potential upside coming from the U.S. Department of Energy tax credit estimated at US$80-100M.
Project Development
Construction progress on the Florence Copper project remains on track for first production at the commercial facility with key contractors active on site and no reportable injuries or environmental incidents.
Negative Factors
Capital Expenditures
Capital expenditures are slightly higher relative to the US$232M project cost, with expectations to be within 10-15% of the estimate.
Taseko Mines (TKO) vs. S&P 500 (SPY)
Market Cap
$1.01B
Dividend YieldN/A
Average Volume (3M)650.08K
Price to Earnings (P/E)11.1
Beta (1Y)2.14
Revenue Growth26.54%
EPS Growth476.94%
CountryCA
Employees191
SectorBasic Materials
Sector Strength59
IndustryCopper
Share Statistics
EPS (TTM)-0.04
Shares Outstanding310,546,200
10 Day Avg. Volume584,912
30 Day Avg. Volume650,081
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)1.70
Price to Cash Flow (P/CF)3.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.88Price Target Upside50.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Taseko Mines Business Overview & Revenue Model
Company DescriptionTaseko Mines Limited, a mining company, acquires, develops, and operates mineral properties. The company explores for copper, molybdenum, gold, niobium, and silver deposits. It holds 75% interest in the Gibraltar mine located in British Columbia. It also holds 100% interest in Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project located in British Columbia; and the Florence copper project located in Arizona. The company was incorporated in 1966 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyTaseko Mines generates revenue primarily through the extraction and sale of copper concentrate from its operations at the Gibraltar Mine. The company sells its copper concentrate to smelters and metal traders, who then refine it into pure copper for industrial use. The revenue model is heavily dependent on global copper prices, production volumes, and operational efficiencies. Additionally, Taseko's future revenue streams are expected to be bolstered by its development projects, such as the Florence Copper Project in Arizona, which aims to use in-situ recovery technology for copper extraction. The company's earnings are also influenced by strategic partnerships and joint ventures that help optimize resource extraction and reduce operational costs.
Taseko Mines Financial Statement Overview
Summary
Taseko Mines displays robust revenue growth and operational efficiency, underscored by healthy profit margins. However, high leverage and negative free cash flow highlight potential risks in financial stability and cash management. Continued focus on cost control and capital management will be crucial for sustaining growth and improving financial health.Income Statement
Taseko Mines shows a solid revenue growth trend with a TTM revenue increase of 12.9% from the previous annual report. Gross and net profit margins are healthy at 23.5% and 12.7% respectively, indicating good profitability. However, the drop in gross profit compared to the previous year suggests potential cost management issues. The EBIT and EBITDA margins are strong at 18.1% and 42.0%, respectively, showing effective operational efficiency.72
Positive
Balance Sheet
The company's debt-to-equity ratio stands at 1.53, indicating a relatively high leverage, which is typical in the mining industry but still a risk factor. The return on equity is healthy at 15.6%, showcasing good profitability relative to shareholder equity. However, the equity ratio is only 23.5%, suggesting a high reliance on debt financing.68
Positive
Cash Flow
Operating cash flow to net income ratio is 2.6, reflecting strong cash generation relative to earnings. However, free cash flow is negative, indicating challenges in covering capital expenditures with cash generated from operations. The free cash flow growth has been negative, influenced by significant capital expenditures, which poses a potential risk to financial flexibility.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 592.70M | 524.97M | 391.61M | 433.28M | 343.27M | 329.16M | Gross Profit |
| 139.03M | 207.35M | 54.23M | 163.81M | 23.73M | -39.14M | EBIT |
| 107.09M | 186.25M | 32.78M | 135.97M | -1.36M | -63.07M | EBITDA |
| 249.22M | 234.24M | 74.14M | 202.56M | 100.52M | 60.21M | Net Income Common Stockholders |
| 75.19M | 82.73M | -25.97M | 36.47M | -23.52M | -53.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 35.31M | 97.81M | 123.43M | 239.88M | 86.90M | 53.93M | Total Assets |
| 971.25M | 1.57B | 1.28B | 1.18B | 910.37M | 884.00M | Total Debt |
| 353.42M | 632.38M | 587.49M | 533.10M | 363.40M | 373.49M | Net Debt |
| 318.89M | 535.90M | 466.64M | 296.33M | 278.29M | 320.29M | Total Liabilities |
| 621.17M | 1.13B | 922.27M | 824.68M | 592.99M | 582.31M | Stockholders Equity |
| 350.08M | 434.15M | 356.41M | 358.52M | 317.37M | 301.69M |
| Cash Flow | Free Cash Flow | ||||
| -13.10M | -69.74M | 1.59M | 87.04M | 40.70M | -8.11M | Operating Cash Flow |
| 195.25M | 151.09M | 81.27M | 174.77M | 106.19M | 42.64M | Investing Cash Flow |
| -276.32M | -167.60M | -166.41M | -147.71M | -59.64M | -16.93M | Financing Cash Flow |
| 203.86M | 40.70M | -35.24M | 125.79M | -11.94M | -16.74M |
Taseko Mines Technical Analysis
Neutral
3.25
Price Trends
3.06
Positive
2.99
Positive
3.08
Positive
Market Momentum
0.12
Positive
49.92
Neutral
36.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TKO, the sentiment is Neutral. The current price of 3.25 is below the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.06, and above the 200-day MA of 3.08, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TKO.
Taseko Mines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
TSE:TKO
Taseko Mines
3.22
0.27
9.15%
HBM
Hudbay Minerals
7.59
0.62
8.90%
LUNMF
Lundin Mining
8.18
-1.91
-18.93%
CSCCF
Capstone Copper
5.21
-1.15
-18.08%
FQVLF
First Quantum Minerals
13.71
2.98
27.77%
TSE:CAM
Cascadia Minerals Ltd
0.10
-0.10
-50.00%
Taseko Mines Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 12.07% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and successful project advancements, particularly at Florence. However, operational challenges at Gibraltar, including a labor strike and production losses, were significant. Despite these challenges, the overall outlook remains positive with strong revenue records and promising future production forecasts.Highlights
Strong Financial Performance
Generated CAD 224 million of adjusted EBITDA and CAD 233 million of cash flow from operations, marking improvements over 2023.
Gibraltar Production Achievements
Gibraltar produced 106 million pounds of copper and 1.4 million pounds of molybdenum in 2024. The operation finished the year with a strong quarter, producing 29 million pounds of copper in Q4 at a cash cost of US$ 2.42 per pound. Mill throughput averaged 89,700 tons per day, exceeding the design capacity of 85,000 tons per day.
Florence Project Advancements
Construction at Florence is progressing smoothly and on schedule, with the overall project completion a little over 60%. First production is expected in about 10 months.
Record Revenue
For the year, sales of 108 million pounds of copper generated revenues of $608 million, the highest Taseko has ever reported.
Positive Production Outlook
Guidance for Gibraltar in 2025 is 120 million pounds to 130 million pounds, with a production profile weighted to the second half of the year.
Successful Bond Refinancing
Opportunistically refinanced bonds earlier in the year, ending 2024 with over CAD 330 million of available liquidity.
Lowlights
Operational Challenges at Gibraltar
Milling disruptions, major maintenance, a labor strike, and the move of an in-pit crusher led to approximately 15 million pounds of lost copper production.
Labor Strike Impact
An 18-day labor strike in June resulted in $19 million of costs being expensed for site care and maintenance.
Lower Mill Operating Hours
Scheduled project work and maintenance, along with the labor strike, resulted in lower mill operating hours for the year.
Increased Costs
Total site costs at Gibraltar totaled CAD 414 million for the year, with costs on a per-pound basis higher at US$2.66 due to lower production levels.
Company Guidance
During Taseko Mines' 2024 Fourth Quarter Earnings Conference Call, significant guidance was provided regarding the company's operational and financial outlook. The company expects Gibraltar to produce between 120 million and 130 million pounds of copper in 2025, with production weighted towards the latter half of the year. The first quarter is anticipated to be the weakest, with expected head grades below 0.2%, improving thereafter. Molybdenum production is projected to remain strong, providing a byproduct credit of US$0.42 per pound in the fourth quarter. The restart of the SX/EW plant is planned for the second quarter, contributing 3 to 4 million pounds of cathode production this year. At Florence, construction is over 60% complete, with first production anticipated in 10 months. Capital spending at Florence reached US$155 million in 2024, and peak construction spending is expected in the first quarter of 2025. Taseko also aims to advance project permitting for the Yellowhead project, anticipating benefits from new Canadian tax credits and updates to metal price assumptions in an upcoming technical report.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.