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Taseko Mines Limited (TSE:TKO)
TSX:TKO
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Taseko Mines
(TSX:TKO)
Rating:58Neutral
Price Target:
C$4.50
▲(5.39% Upside)
Positive Factors
Financial Performance
The after-tax net present value (NPV) and internal rate of return (IRR) for the Yellowhead project have significantly increased, indicating better financial prospects.
Operational Efficiency
C1 cash costs of US$2.26/lb were much better than expected at US$2.90/lb, indicating effective cost management.
Tax Incentives
The Yellowhead project is expected to be eligible for the federal Canadian Clean Technology Manufacturing Investment Tax Credit, which could reimburse 30% of eligible initial capital costs in the first year of operation.
Negative Factors
Capital Costs
The Yellowhead project has a large pre-production capital cost, which presents a financial challenge.
Production Guidance
Copper production guidance in 2025 for Gibraltar was reduced by ~10Mlb due to challenging ground conditions.
Taseko Mines (TKO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$1.37B
Dividend YieldN/A
Average Volume (3M)668.84K
Price to Earnings (P/E)11.1
Beta (1Y)2.32
Revenue Growth0.10%
EPS Growth-135.33%
CountryCA
Employees191
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)-0.04
Shares Outstanding315,875,340
10 Day Avg. Volume610,754
30 Day Avg. Volume668,837
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue3.46
Enterprise Value/Gross Profit19.06
Enterprise Value/Ebitda21.34
Forecast
1Y Price Target
$5.36Price Target Upside25.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
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 sale of copper and molybdenum concentrates produced at its Gibraltar Mine. The company sells these concentrates to various customers, including smelters and refiners, under long-term contracts and spot market transactions. In addition to copper and molybdenum, Taseko explores other potential revenue streams by developing various projects, such as the Florence Copper Project in Arizona, which aims to produce copper through in-situ recovery methods. The company's revenue is influenced by global copper prices, operational efficiency, and production levels. Strategic partnerships with other mining entities and investments in exploration activities also contribute to Taseko’s earnings potential.
Taseko Mines Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 2.40%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant operational achievements and progress on key projects, including a dramatic increase in mining rates at Gibraltar and progress nearing completion of the Florence project. However, these achievements were tempered by operational challenges such as the transformer issue at Gibraltar and financial impacts from lower sales and increased costs, leading to an adjusted net loss.Q2-2025 Updates
Positive Updates
Significant Increase in Mining Rates at Gibraltar
Mining rates at the Gibraltar site increased dramatically by 31% compared to Q1, achieving the best mining quarter in the last 4 years with a total of 30 million tons mined.
Florence Project Nears Completion
The Florence project construction is over 90% complete, with all planned wellfield drilling finished and critical systems like the electrical substation completed. The first copper cathode production is anticipated before the end of the year.
Copper Market Developments Positive for Florence
U.S. copper tariffs incentivizing U.S.-based manufacturing of copper products is a positive development for the Florence project, positioning it strategically as a U.S.-based refined copper supplier.
New Prosperity Agreement with BC and Tsilhqot'in Nation
The agreement includes a $75 million cash payment for a 22.5% equity interest, potentially unlocking future mine development opportunities with the Tsilhqot'in consent.
Yellowhead Project Advances
The Yellowhead project, with updated technical study results, shows improved economics with an NPV of CAD 2 billion and an IRR of 21%, advancing through the environmental assessment process.
Strong Financial Liquidity
Taseko ended the quarter with $122 million in cash and a total liquidity of just under $200 million.
Negative Updates
Transformer Issue at Gibraltar SX/EW Plant
A transformer issue resulted in a shutdown of the SX/EW plant at Gibraltar, expected to cause 6 to 8 weeks of downtime with a production impact of less than 1 million pounds.
Lower Sales and Strong Canadian Dollar Impact Revenue
Second quarter sales totaled 19 million pounds at a lower average realized price, generating $116 million in revenue, affected by lower sales and a stronger Canadian dollar.
Adjusted Earnings Show Net Loss
Taseko posted an adjusted net loss of $13 million or $0.04 loss per share, impacted by lower production and sales volumes.
Increased Operating Costs
Costs on a per pound basis were $3.14, higher than the previous quarter due to lower capitalized stripping and associated costs with oxide ore.
Company Guidance
In the Taseko Mines 2025 Second Quarter Earnings Conference Call, several key metrics were highlighted by the management team. The mining rates at Gibraltar increased significantly to 30 million tons, marking a 31% rise from Q1 and the best quarter in four years, with copper production steady at 20 million pounds. Copper grades stood at 0.20% with recoveries at 63%. The company expects improved production and cost reductions in the second half, with C1 cash costs at $3.14 per pound anticipated to decline. At Florence, construction is over 90% complete, and initial solution injections are targeted for September, with first copper cathode production expected by year-end. Financially, Taseko reported Q2 revenue of $116 million, net income of $22 million, and an adjusted net loss of $13 million, with $239 million incurred on Florence construction to date. The company holds $122 million in cash and is actively managing copper price protection.Taseko Mines Financial Statement Overview
Summary
Taseko Mines shows moderate financial health with strong operating cash flow and a stable equity base, but faces challenges due to profitability issues and a high debt-to-equity ratio. Revenue trends show growth, but recent declines highlight volatility. Strategic improvements in cost management and debt reduction are necessary.Income Statement
Taseko Mines shows moderate revenue growth over the years with a TTM revenue decline from the previous annual figure. The net profit margin is negative due to consistent net losses, indicating profitability issues. Gross profit margin exhibits some stability, though it has declined recently. The company struggles with profitability as reflected in negative net income and declining EBIT and EBITDA margins.55
Neutral
Balance Sheet
The balance sheet shows moderate stability with a consistent equity base. The debt-to-equity ratio remains relatively high, suggesting leverage risk. Return on equity has been negative recently due to net losses. The equity ratio is stable but indicates moderate reliance on debt financing.60
Neutral
Cash Flow
Taseko Mines has a robust operating cash flow, though free cash flow has been inconsistent. The operating cash flow to net income ratio is high, indicating strong cash generation relative to reported earnings. However, free cash flow has diminished recently, highlighting potential challenges in capital management.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 600.29M | 608.09M | 524.97M | 391.61M | 433.28M | 343.27M |
| Gross Profit | 109.10M | 117.16M | 207.35M | 54.23M | 163.81M | 23.73M |
| EBITDA | 97.43M | 170.94M | 233.23M | 71.62M | 176.63M | 97.88M |
| Net Income | -60.90M | -13.44M | 82.73M | -25.97M | 36.47M | -23.52M |
Balance Sheet | ||||||
| Total Assets | 2.22B | 2.20B | 1.57B | 1.28B | 1.18B | 910.37M |
| Cash, Cash Equivalents and Short-Term Investments | 121.92M | 173.63M | 97.81M | 123.43M | 239.88M | 86.90M |
| Total Debt | 786.65M | 790.57M | 632.38M | 586.57M | 533.10M | 363.40M |
| Total Liabilities | 1.71B | 1.69B | 1.13B | 922.27M | 824.68M | 592.99M |
| Stockholders Equity | 508.12M | 503.22M | 434.15M | 356.41M | 358.52M | 317.37M |
Cash Flow | ||||||
| Free Cash Flow | 115.95M | 149.48M | 33.16M | 1.59M | 87.04M | 40.70M |
| Operating Cash Flow | 228.93M | 232.62M | 151.09M | 81.27M | 174.77M | 106.19M |
| Investing Cash Flow | -402.13M | -317.89M | -167.60M | -166.41M | -147.71M | -59.64M |
| Financing Cash Flow | 130.15M | 157.16M | -7.05M | -35.24M | 125.79M | -11.94M |
Taseko Mines Technical Analysis
Neutral
4.27
Price Trends
4.25
Positive
3.63
Positive
3.30
Positive
Market Momentum
-0.01
Positive
45.96
Neutral
31.33
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 4.27 is below the 20-day moving average (MA) of 4.48, above the 50-day MA of 4.25, and above the 200-day MA of 3.30, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 31.33 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 (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $1.37B | 11.15 | -5.19% | ― | 0.10% | -135.33% | |
44 Neutral | C$915.00M | -8.74 | -0.23% | 2.71% | 20.34% | -40.71% | |
| ― | $243.04M | 15.48 | 14.89% | 5.72% | ― | ― | |
76 Outperform | C$709.23M | 3.98 | 21.64% | ― | 64.90% | ― | |
53 Neutral | C$428.34M | ― | -5.68% | ― | ― | 12.55% | |
43 Neutral | C$1.05B | ― | -13.43% | ― | ― | -83.79% | |
39 Underperform | C$218.57M | 35.73 | 7.53% | ― | ― | ― |
* Basic Materials Sector Average
Performance Comparison
TSE:TKO
Taseko Mines
4.27
1.43
50.35%
ARREF
Amerigo Resources
1.50
0.40
36.36%
TSE:MARI
Marimaca Copper
9.77
5.90
152.45%
TSE:III
Imperial Metals
4.35
2.25
107.14%
TSE:LA
Los Andes Copper
7.20
-1.80
-20.00%
TSE:ASCU
Arizona Sonoran Copper Co.
2.40
0.78
48.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.