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    TASEKO MINES (TGB)

    TGB Q4 2024: Guides Sustaining Capex $20-30M as Q1 Production Soft

    Reported on Jun 23, 2025 (After Market Close)
    Pre-Earnings Price$2.24Last close (Feb 20, 2025)
    Post-Earnings Price$2.23Open (Feb 21, 2025)
    Price Change
    $-0.01(-0.45%)
    • Stable Operating Expense Management: Management expects sustaining capital spending to normalize in the $20–30 million range for Gibraltar, which supports a disciplined cost structure and ensures ongoing operational efficiency.
    • Robust Production Throughput: Q&A highlights that Gibraltar’s throughput remains strong, aided by soft ore from the Connector pit, which should help maintain solid production levels despite a weaker first quarter.
    • Efficient Project Execution at Florence: Positive drilling performance and the proactive approach to secure acid supply through an RFP indicate effective cost control and enhanced operational readiness at Florence, positioning the project well for its ramp-up phase.
    • Rising Sustaining CapEx Pressure: Management noted that sustaining capital expenditures at Gibraltar are expected to be in the $20–30 million range as these costs reflect ongoing repairs, maintenance, and equipment replacements. Higher-than-anticipated CapEx requirements could pressure cash flow and margins if maintenance issues escalate.
    • Reliance on External Partners for Critical Supplies: The company is still in the process of securing a stable acid supply through an RFP and continues to depend on external parties for drilling at Florence. This reliance exposes the firm to supply chain risks and potentially higher input costs.
    • Short-Term Production Weakness: The guidance that the first quarter will be the weakest due to supplementing mined ore with lower-grade stockpiled material raises concerns about near-term production shortfalls, which could adversely impact short-term revenues.
    1. Sustaining & Acid
      Q: What drove higher sustaining CapEx and acid plans?
      A: Management explained that higher sustaining capital was due to timing repairs and mobile fleet maintenance and expects levels to normalize to around $20–30 million in FY25. Additionally, they are actively engaging with multiple acid suppliers and will issue an RFP soon to secure future acid supply for Florence.

    2. Gibraltar Throughput
      Q: How is current throughput performing at Gibraltar?
      A: They noted that throughput remains strong thanks to the softer Connector pit ore, even though production is weighted to the second half of the year, making Q1 somewhat weaker.

    3. Florence Drilling & Acid
      Q: How are well costs and drilling plans, plus acid supply progress?
      A: Management reported solid drilling performance with costs tracking well and confirmed that drilling will remain outsourced in the near term while evaluating eventual in-house options. On acid, they continue robust discussions and will formalize supply contracts via an RFP this quarter.

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