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1. Company Snapshot

1.a. Company Description

Taseko 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.

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1.b. Last Insights on TKO

Taseko Mines Limited's recent performance was driven by a historic agreement with the Tŝilhqot'in Nation and the Province of BC, resolving a long-standing conflict over the New Prosperity mineral tenures. This agreement is expected to unlock significant value for the company. Additionally, the company's Florence Copper project is advancing on schedule, with first copper production targeted before the end of 2025. The project's overall completion was at 78% as of March 31, 2025.

1.c. Company Highlights

2. Taseko Mines' Q3 Earnings Shine with Operational and Financial Improvements

Taseko Mines reported a significant improvement in its third-quarter results, both operationally and financially. The company's revenue surged to $174 million, representing a 50% increase quarter-over-quarter, driven by copper sales of 26 million pounds at an average realized copper price of nearly $450 per pound. The adjusted net income came in at $6 million, with earnings per share (EPS) of $0.02, missing analyst estimates of $0.1. The adjusted EBITDA was $62 million. The company's financial performance was also reflected in its cash position, which stood at $91 million at the end of the quarter.

Publication Date: Nov -24

📋 Highlights
  • Operational Performance:: Copper production rose to 28M lb, with molybdenum at 560K lb, while grades and recoveries hit 0.22% and 77% respectively.
  • Cost Efficiency:: Cash costs fell to $287 per pound, driving $62M in adjusted EBITDA amid improved operational metrics.
  • Florence Project Milestone:: SX/EW plant achieved substantial completion; commissioning underway with first copper production slated for early 2024.
  • Revenue Growth:: Q3 revenue surged 50% to $174M on 26M lb copper sales at $450/lb average price, alongside $6M adjusted net income.
  • Financial Strength:: $173M equity raise in October enabled repayment of $75M credit facility, leaving $91M in cash and positioning for 2026 guidance next year.

Operational Highlights

Operationally, Taseko Mines saw an improvement in copper production, which was nearly 28 million pounds, while molybdenum production stood at 560,000 pounds. The grades increased to 0.22%, and mill recoveries rose to 77%, contributing to a reduction in costs to $287 per pound. The Florence project also achieved a significant milestone with the substantial completion of the SX/EW plant, and commissioning is currently underway. First copper production is expected early in the new year.

Financial Position and Future Outlook

Following an equity financing in October, which raised $173 million, Taseko Mines repaid its $75 million revolving credit facility, strengthening its financial position. The company expects a more consistent year in 2026 with less quarterly volatility and plans to provide formal guidance in the new year. Analysts estimate revenue growth of 56.0% next year, indicating a positive outlook for the company.

Valuation Metrics

With a P/E Ratio of -34.07 and an EV/EBITDA of 26.06, the market appears to be pricing in significant growth expectations. The P/S Ratio stands at 3.13, indicating that the stock may be fairly valued relative to its sales. The ROE is -10.52%, and the ROIC is 1.91%, suggesting that the company's profitability is still a work in progress. The Net Debt / EBITDA ratio is 7.63, highlighting the company's leverage. These metrics will be important to monitor as the company moves forward with its operational and financial improvements.

3. NewsRoom

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Update On Taseko; Down 5.1% In US After Hours As It Announces US$150 Million Bought-Deal Financing

Oct -15

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Taseko Mines Limited Announces US$150 Million Bought Deal Financing

Oct -15

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Taseko Mines Limited Announces US$150 Million Bought Deal Financing

Oct -15

Source: globenewswire.com

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Taseko Mines (TSX:TKO) Valuation in Focus After Florence Copper Milestone and Gibraltar Gains

Oct -15

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Taseko Says Wellfield Operations at Florence Copper Project Starting; Details Gibraltar Mine Q3 Output

Oct -15

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Taseko Up 2.5% In US Premarket As Launches Wellfield Operations at Florence Copper, Reports Gibraltar Mines Q3 Production

Oct -15

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Taseko Announces Start of Wellfield Operations at Florence Copper and Third Quarter Gibraltar Operational Results

Oct -15

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Taseko (TGB) Upgraded to Buy: What Does It Mean for the Stock?

Oct -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.82%)

6. Segments

Copper Contained in Concentrate

Expected Growth: 4.83%

Taseko Mines Limited's 4.83% growth in Copper Contained in Concentrate is driven by increased production at the Gibraltar mine, improved ore grades, and enhanced processing recoveries. Additionally, favorable copper prices and a weaker Canadian dollar have contributed to the growth, offsetting higher operating costs and capital expenditures.

Molybdenum Concentrate

Expected Growth: 4.83%

Taseko Mines Limited's 4.83% growth in Molybdenum Concentrate is driven by increasing demand from the steel industry, particularly in China, and the company's successful expansion of its Gibraltar mine. Additionally, higher molybdenum prices and improved operational efficiencies have contributed to the growth.

Treatment and Refining Costs

Expected Growth: 4.65%

Taseko Mines Limited's 4.65% growth in Treatment and Refining Costs is driven by increased copper production, higher energy costs, and investments in mine development. Additionally, rising labor costs, maintenance expenses, and transportation fees also contribute to the growth. Furthermore, the company's efforts to improve operational efficiency and expand its production capacity also support the cost increase.

Silver

Expected Growth: 4.65%

Taseko Mines Limited's 4.65% growth in silver production is driven by increased ore grades, improved mill throughput, and enhanced recovery rates at its Gibraltar Mine. Additionally, the company's cost-saving initiatives and favorable silver prices have contributed to the growth.

Molybdenum Price Adjustments on Settlement

Expected Growth: 4.65%

Taseko Mines Limited's 4.65% growth in molybdenum price adjustments is driven by increasing demand from the steel industry, particularly in China, coupled with supply chain disruptions and inventory replenishment. Additionally, strong copper prices, to which molybdenum is often tied, have contributed to the upward price pressure.

Copper Price Adjustments on Settlement

Expected Growth: 4.83%

The 4.83% growth in copper price adjustments from Taseko Mines Limited is driven by increasing global demand, particularly from the electric vehicle and renewable energy sectors. Additionally, supply chain disruptions and production cuts at major copper mines have contributed to the price surge. Strengthening economic indicators and a weaker US dollar have also supported the upward trend.

7. Detailed Products

Copper

Taseko Mines Limited is a significant producer of copper, a highly conductive and ductile metal used in various industrial applications, including electrical wiring, plumbing, and architecture.

Molybdenum

Taseko Mines Limited also produces molybdenum, a hard, silver-white metal used in steel alloys, catalysts, and other industrial applications.

Gold

As a byproduct of copper mining, Taseko Mines Limited also produces gold, a highly valued precious metal used in jewelry, coins, and other decorative items.

Silver

Taseko Mines Limited also produces silver, a highly conductive and reflective metal used in various industrial applications, including electronics and solar panels.

8. Taseko Mines Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Taseko Mines Limited operates in the copper and gold mining industry, where substitutes are limited. However, the company faces competition from other mining companies, which could lead to a moderate threat of substitutes.

Bargaining Power Of Customers

Taseko Mines Limited's customers are primarily industrial companies and traders, who have limited bargaining power due to the company's strong market position and limited alternatives.

Bargaining Power Of Suppliers

Taseko Mines Limited relies on suppliers for equipment, materials, and services. While the company has some bargaining power, suppliers also have some leverage, leading to a moderate bargaining power of suppliers.

Threat Of New Entrants

The mining industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and environmental concerns, making it difficult for new entrants to join the market.

Intensity Of Rivalry

The mining industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.18%
Debt Cost 10.93%
Equity Weight 41.82%
Equity Cost 14.33%
WACC 12.35%
Leverage 139.14%

11. Quality Control: Taseko Mines Limited passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Doman

A-Score: 6.9/10

Value: 8.1

Growth: 5.7

Quality: 4.5

Yield: 10.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Amerigo Resources

A-Score: 6.6/10

Value: 5.3

Growth: 6.4

Quality: 5.9

Yield: 9.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Imperial Metals

A-Score: 6.2/10

Value: 7.0

Growth: 9.0

Quality: 7.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Stelco Holdings

A-Score: 4.5/10

Value: 3.8

Growth: 6.1

Quality: 5.8

Yield: 5.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Taseko Mines

A-Score: 4.0/10

Value: 4.3

Growth: 5.8

Quality: 2.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Ero Copper

A-Score: 3.9/10

Value: 5.1

Growth: 3.4

Quality: 6.0

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.44$

Current Price

7.44$

Potential

-0.00%

Expected Cash-Flows