Taseko Mines: From Single Mine to Copper Cash Machine
Florence's first full quarter, record revenue, and negative TC/RCs set the stage for deleveraging.
TGB · Earnings Call · 2026-08-06
Two Assets, One Growth Engine
Taseko Mines has crossed a threshold. Q2 2026 marked the first full quarter of production at Florence, turning the company into a two-asset copper producer. The financial results speak for themselves: revenue of $331 million—the highest ever—operating cash flow of $183 million, and adjusted EBITDA of $125 million. As CEO Stuart McDonald put it, “It was a solid quarter for the company. A steady operating performance at Gibraltar, allowed us to capitalize on a great copper price.” — Stuart McDonald, Likely CEO or Senior Executive · 2026-08-06 The copper leverage that the company has long promised is now on full display.Florence: Wellfield Expansion Drives Ramp-Up
Florence produced just over 5 million pounds of cathode in the quarter, and management's focus is squarely on expanding the wellfield. In June, the first 20 new production wells came online, and another 18 are being integrated this month. The wellfield is also moving into a thicker portion of the ore body, which should yield higher per-well production. Management reiterated its 2026 target of 30–35 million pounds and its goal of reaching ~7 million pounds per month run rate by year-end. The current C1 cost of US$4.72/lb is still high because fixed costs are being spread over a small base, but this should fall rapidly as volumes grow. One key input is Sulfuric acid, the largest operating cost. The company locked in a fixed price of US$270/ton for 2026, which is considered good given the recent acid market strength. Management expects some escalation in 2027 but remains confident in Florence's long-term cost curve. The ramp-up is proceeding as telegraphed. In the prior quarter's call, Stuart had already guided to a back-half-weighted year: “we will have new wells coming on in May, which will start to produce copper in June, but generally I would not expect a major uplift in production in Q2 ... I think you will start to see a much bigger increase in Q3 and Q4” — Stuart McDonald, Chief Executive Officer · 2026-05-07 Indeed, Q2 output was in line with that expectation, and now the company is adding wells on a monthly cadence.Gibraltar: Cost Pressures Offset by Record Byproduct Credits
Gibraltar delivered another 30-million-pound quarter, its third in a row. However, cathode production was temporarily dented by electrical issues at the SX-EW plant after its late-April restart; management expects a recovery in H2. Site costs rose slightly, driven by inflationary pressures in fuel, explosives, and parts, plus some pulled-forward maintenance. Diesel costs have been a persistent headwind: “We have seen about a $0.50 Canadian per liter increase-roughly $20 million Canadian year-over-year” — Stuart McDonald, Chief Executive Officer · 2026-05-07 But these pressures are being more than offset by strong Moly prices (above $30/lb) and, even more dramatically, by a sharp swing in concentrate treatment charges. Taseko has contracted nearly all its 2027 tonnage at an average TCE of **negative $140 per ton**—meaning smelters are paying Taseko to take its concentrate, and the gold content in the concentrate will also generate revenue.This effectively turns a historically negative line item into a new positive revenue stream, a remarkable development for a copper miner.That is an amazing rate that we have never seen before. And with our contracted terms for next year, we also expect to get paid for the gold content in Gibraltar concentrate.