VANCOUVER, BC, Jan. 11, 2021 /CNW/ - Taseko Mines Limited
(TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or the
"Company") is pleased to provide an update on 2020 financial and
operational performance.
Stuart McDonald, President of
Taseko, commented, "Given the volatility and challenges brought
about by COVID-19 over the past year and the state of the global
economy just nine months ago, we are very pleased with our 2020
financial results and optimistic about the year ahead.
Adjusted EBITDA* for 2020 is expected to be in the range of
$105-110 million, up from
$51 million in 2019. Gibraltar
produced 123 million pounds of copper for the year and 2.3 million
pounds of molybdenum. Looking ahead to 2021, we expect copper
production of approximately 125 million pounds from Gibraltar."
Mr. McDonald continued, "Copper prices have continued to
strengthen and many analysts are forecasting higher prices going
forward, based on the strong demand environment, expected
government stimulus programs and investments in renewable energy
infrastructure, combined with ongoing mine supply challenges.
The current copper price of approximately US$3.65 per pound is roughly US$0.80 per pound higher than the average price
in 2020, and at current prices we would have generated around
$200 million of Adjusted EBITDA* in
2020, so we are very optimistic about our financial outlook this
year.
The improved market conditions are timely as we continue to
advance all financing options for the Florence copper
project. We ended the year with a cash balance of
$85 million, up from $53 million at the end of 2019."
Mined ore grades in October and November impacted production in
the fourth quarter, but we finished with a strong December with
concentrator throughput above design capacity along with increased
copper grades. Additionally, increased oxide ore and ore
hardness in the initial Pollyanna Pit benches affected recoveries
and throughput in the fourth quarter, both of which have been
rectified," concluded Mr. McDonald.
Russell Hallbauer
Chief Executive Officer and Director
No regulatory authority has approved or disapproved of the
information contained in this news release.
*Non-GAAP performance measure. See end of news
release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" that were
based on Taseko's expectations, estimates and projections as of the
dates as of which those statements were made. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "outlook", "anticipate",
"project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking statements. These included but are not limited
to:
- uncertainties about the effect of COVID-19 and the response of
local, provincial, federal and international governments to the
threat of COVID-19 on our operations (including our suppliers,
customers, supply chain, employees and contractors) and economic
conditions generally and in particular with respect to the demand
for copper and other metals we produce;
- uncertainties and costs related to the Company's exploration
and development activities, such as those associated with
continuity of mineralization or determining whether mineral
resources or reserves exist on a property;
- uncertainties related to the accuracy of our estimates of
mineral reserves, mineral resources, production rates and timing of
production, future production and future cash and total costs of
production and milling;
- uncertainties related to feasibility studies that provide
estimates of expected or anticipated costs, expenditures and
economic returns from a mining project;
- uncertainties related to the ability to obtain necessary
licenses permits for development projects and project delays due to
third party opposition;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and
government policies affecting our exploration and development
activities and mining operations, particularly laws, regulations
and policies;
- changes in general economic conditions, the financial markets
and in the demand and market price for copper, gold and other
minerals and commodities, such as diesel fuel, steel, concrete,
electricity and other forms of energy, mining equipment, and
fluctuations in exchange rates, particularly with respect to the
value of the U.S. dollar and Canadian dollar, and the continued
availability of capital and financing;
- the effects of forward selling instruments to protect against
fluctuations in copper prices and exchange rate movements and the
risks of counterparty defaults, and mark to market risk;
- the risk of inadequate insurance or inability to obtain
insurance to cover mining risks;
- the risk of loss of key employees; the risk of changes in
accounting policies and methods we use to report our financial
condition, including uncertainties associated with critical
accounting assumptions and estimates;
- environmental issues and liabilities associated with mining
including processing and stock piling ore; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate mines, or environmental hazards, industrial accidents or
other events or occurrences, including third party interference
that interrupt the production of minerals in our mines.
For further information on Taseko, investors should review the
Company's annual Form 40-F filing with the United States Securities
and Exchange Commission www.sec.gov and home jurisdiction filings
that are available at www.sedar.com, including the "Risk Factors"
included in our Annual Information Form.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP performance measure and represents
net income before interest, income taxes, and depreciation and also
eliminates the impact of a number of items that are not considered
indicative of ongoing operating performance.
Adjusted EBITDA is presented as a supplemental measure of the
Company's performance and ability to service debt. Adjusted EBITDA
is frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in the
industry. Adjusted EBITDA does not have any standardized
meaning under IFRS and therefore may not be comparable to similar
measures presented by other companies.
Adjusted EBITDA is determined and presented on a consistent
basis from period to period and a preliminary estimated range of
Adjusted EBITDA for the year ended December
31, 2020 is presented above. We have not yet finalized our
operating or financial results for this period, and our actual
financing results for the year ended December 31, 2020 remain subject to the
completion of our quarter-end and year–end closing process, which
includes review by management and our audit committee. While
carrying out such procedures, we may identify items that would
require us to make adjustments to this preliminary estimated range
of Adjusted EBITDA set forth above. As a result, our actual
Adjusted EBITDA could be outside of the ranges set forth above and
such differences could be material. Additionally, our estimate of
Adjusted EBITDA is a forward-looking statement based solely on
information available to us as of the date of this press release
and may differ materially from our actual operating and financial
results as a result of developments that occur after the date of
this press release. Therefore, you should not place undue reliance
on the preliminary estimate of our Adjusted EBITDA. See "Caution
Regarding Forward-Looking Information."
The preliminary estimates of our Adjusted EBITDA have been
prepared by, and are the responsibility of, our management. Our
independent registered public accountants have not audited,
reviewed or performed any procedures with respect to such
preliminary estimates of our operating results. Accordingly,
KPMG LLP expresses no opinion or any other form of assurance with
respect thereto. The information presented herein should not be
considered a substitute for the financial information to be filed
with the SEC in our Annual Report on Form 40-F for the year ended
December 31, 2020 once it becomes
available. We have no intention or obligation to update the
preliminary estimates of our operating and financial results set
forth below prior to filing that Annual Report.
A reconciliation of Adjusted EBITDA for the nine months ended
September 30, 2020 can be found on
page 23 of Taseko's Third Quarter MD&A.
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SOURCE Taseko Mines Limited