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Taseko Mines Limited (TSE:TKO)
TSX:TKO
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Taseko Mines
(TSX:TKO)
Rating:61Neutral
Price Target:
C$5.00
▲(12.87%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.
Project Development
Construction at the Florence project is progressing on schedule, with the project 78% complete.
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
Financial Challenges
The Yellowhead project has a large pre-production capital cost, which presents a financial challenge.
Operational Challenges
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
$1.52B
Dividend YieldN/A
Average Volume (3M)777.02K
Price to Earnings (P/E)11.1
Beta (1Y)2.29
Revenue Growth7.36%
EPS Growth-159.52%
CountryCA
Employees191
SectorBasic Materials
Sector Strength63
IndustryCopper
Share Statistics
EPS (TTM)-0.02
Shares Outstanding315,875,340
10 Day Avg. Volume754,443
30 Day Avg. Volume777,025
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.82
Price to Sales (P/S)0.00
P/FCF Ratio13.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.11Price Target Upside15.39% 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 makes money primarily through the extraction, production, and sale of copper and molybdenum concentrates from its mining operations. The company's key revenue stream is the Gibraltar Mine, which is one of the largest open-pit copper mines in North America. Revenue is generated by processing extracted ore to produce copper and molybdenum concentrates, which are then sold to various smelters and refineries around the world. In addition to copper and molybdenum, Taseko may also derive revenue from by-products such as gold and silver contained in the ore. The company's earnings are influenced by factors such as global commodity prices, production volumes, and operational efficiencies. Strategic partnerships with other mining companies and stakeholders, along with investment in technology and innovation, also contribute to Taseko Mines' revenue generation.
Taseko Mines Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 44.30%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable progress on the Florence Copper project and strong financial liquidity being overshadowed by production challenges and a net loss. While there are positive developments, the significant production setbacks and financial loss contribute to a more cautious outlook.Q1-2025 Updates
Positive Updates
Florence Copper Project Progress
The Florence Copper project is moving forward on time and on budget, with the expectation to produce first copper before the end of the year. 88 out of 90 production wells are completed, and all critical path items are moving forward on schedule.
Strong Cash Flow and Liquidity Position
Taseko ended the quarter with CAD121 million of cash and available liquidity of CAD279 million, factoring in the undrawn revolving credit facility.
Protection Against Copper Price Volatility
Taseko has price protection for the year with collars covering the next three quarters, protecting a floor price of CAD4 per pound for most of their production.
Negative Updates
Copper Production Shortfall
Gibraltar produced 20,000,000 pounds of copper, which was about 10% lower than expected due to lower than anticipated copper recoveries and challenging ground conditions at the connector pit.
GAAP Net Loss
The company posted a GAAP net loss of CAD29 million, partly due to lower quarterly production, higher costs, and a CAD24 million unrealized derivative and fair value adjustment.
Production Guidance Revision
2025 production is expected to be approximately CAD10 million lower than previous guidance due to challenging mining conditions and delayed access to higher-grade ore.
Company Guidance
During the Taseko Mines First Quarter 2025 Earnings Conference Call, the company provided updated guidance for the fiscal year. The Florence Copper project is on track to produce its first copper before the end of the year, with 88 out of 90 production wells completed. Gibraltar produced 20 million pounds of copper in the first quarter at a C1 cost of $2.26 per pound, but production was 10% below expectations due to challenging mining conditions and oxidized ore affecting recovery rates. As a result, copper production guidance for 2025 has been reduced by CAD10 million from the previous range of CAD120 million to CAD130 million. Capitalized stripping costs were CAD38 million, and total site costs for the quarter were CAD107 million. The company ended the quarter with CAD121 million in cash and available liquidity of CAD279 million. Florence construction capital spending is nearing completion, with CAD206 million incurred to date, staying within 15% of the CAD230 million estimate.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
Positive
4.43
Price Trends
3.73
Positive
3.40
Positive
3.21
Positive
Market Momentum
0.29
Positive
56.03
Neutral
56.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TKO, the sentiment is Positive. The current price of 4.43 is above the 20-day moving average (MA) of 4.40, above the 50-day MA of 3.73, and above the 200-day MA of 3.21, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 56.03 is Neutral, neither overbought nor oversold. The STOCH value of 56.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $1.52B | 11.15 | -12.40% | ― | 7.36% | -159.52% | |
44 Neutral | C$967.00M | -6.65 | -13.73% | 2.47% | 17.55% | -32.57% | |
| ― | $269.81M | 15.11 | 17.43% | 5.24% | ― | ― | |
70 Outperform | C$715.56M | 4.43 | 19.93% | ― | 74.34% | ― | |
53 Neutral | C$417.31M | ― | -7.46% | ― | ― | 1.26% | |
43 Neutral | C$1.09B | ― | -13.43% | ― | ― | -83.79% | |
39 Underperform | C$180.46M | 29.84 | 7.53% | ― | ― | ― |
* Basic Materials Sector Average
Performance Comparison
TSE:TKO
Taseko Mines
4.43
1.38
45.25%
ARREF
Amerigo Resources
1.69
0.61
56.48%
TSE:MARI
Marimaca Copper
10.13
6.13
153.25%
TSE:III
Imperial Metals
4.29
2.13
98.61%
TSE:LA
Los Andes Copper
6.18
-3.92
-38.81%
TSE:ASCU
Arizona Sonoran Copper Co.
2.35
0.90
62.07%
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.