President and CEO Stuart McDonald noted that while the Gibraltar mill operated at design capacity in the second quarter, lower head grades contributed to lower recoveries, resulting in copper output of 21 million pounds. The figure represents a 22% decline in production from the same quarter last year.
Rene Cartier, mining analyst at BMO Capital Markets, said Taseko overall earnings were “well below” the bank’s estimate and market consensus.
“Copper production missed our forecast with higher costs weighing on results. Adjusted EBITDA of $1.7 million was well below our forecast of $24.7 million and consensus of $25.1 million,” Cartier wrote.
Mining operations are now advancing deeper into the Gibraltar pit where higher-grade ore is located. As a result, the company expects “significantly higher” copper production in the second half of the year.
Taseko reiterated its 2022 copper production guidance of 115 million…
