Taseko Mines (TGB) released its Q1 2020 financial results. The recently ended quarter didn’t provide any major positive change. The company is struggling due to the weak copper prices and although it was able to cut production costs at its 75%-owned Gibraltar copper-molybdenum mine, over the recent quarter, the cash flows remain weak and six consecutive quarters of net losses were recorded. Things should change after the Florence mine gets into commercial production, however, Taseko is still waiting for permits to develop a commercial-scale operation.
In Q1, Taseko’s only producing mine produced 32.4 million lb copper and 412,000 lb molybdenum (75% of production is attributable to Taseko). The copper production is only slightly lower compared to the previous three quarters which is positive news, as Q1 used to be Gibraltar’s weakest quarter by far. This year is different and operations progressed smoothly also during the winter months. What is positive, Taseko was able to cut the total operating costs by 9.5%, to $1.82. It is the lowest level since Q3 2018. Moreover, the costs should decline further over the remainder of this year, as the management adopted a new operating plan and reduced some investments, which, together with lower fuel prices and weaker CAD should lead to further cost savings of around $0.4/lb copper.