VANCOUVER, Aug. 2, 2017 /PRNewswire/ - Taseko Mines Limited (TSX: TKO; NYSE American: TGB) ("Taseko" or the "Company") reports cash flow from operations of $62.3 million in the second quarter of 2017, earnings from mining operations before depletion and amortization* of $46.5 million and adjusted EBITDA* of $42.8 million.
Russell Hallbauer, President & CEO commented, "In the first half of 2017 we built on the successes realized in the fourth quarter of 2016, and capitalized on rising copper prices. Over the past nine months we have generated $192 million of cash flow from operations and $147 million in earnings from mining operations before depletion and amortization. Over the same period, site spending has been consistent and in the second quarter site operating costs, net of by-products was US$0.97 per pound with C1* costs of US$1.31 per pound."
"During the second quarter we completed a US$250 million debt offering. We used the proceeds from this offering, along with a portion of our cash balance, to repay approximately US$275 million of debt which was due in 2019. We felt it was important to take advantage of a healthy bond market to reduce our overall debt and extend the due date to 2022," continued Mr. Hallbauer.
Mr. Hallbauer added, "With the copper price recently increasing to two-year highs, combined with nearly $100 million of cash on hand plus our long-term debt reduced and termed out five years, we are in a very good position to continue investing in and advancing our pipeline of projects."
"For the past four weeks, uncontrolled wildfires resulted in evacuation orders for a number of communities in the Cariboo where most of our Gibraltar employees reside. These evacuation orders have affected the complement of personnel who operate Gibraltar, and access to and from the mine was also significantly curtailed during this period. This has resulted in reduced production for periods of time as well as a complete mine shutdown for several days during July. Mining and milling operations are beginning to return to normal as some evacuation orders have been lifted over the past week. Third quarter copper sales volumes are expected to be up to 10% lower than the second quarter of 2017. The situation continues to evolve and we are hopeful that the worst is behind us," concluded Mr. Hallbauer.