Taseko Mines (TSE:TKO) reported record quarterly revenue and strong operating cash flow in its second-quarter 2026 call, citing copper prices above CAD 6 per pound, steady output at Gibraltar and the first full quarter of production from its Florence operation.
President and CEO Stuart McDonald said the company’s Gibraltar mine delivered a consistent operating performance, while Florence produced more than 5 million pounds of copper cathode during its initial full production quarter. Chief Financial Officer Bryce Hamming said the company generated CAD 331 million in revenue, CAD 183 million in operating cash flow and CAD 125 million in adjusted EBITDA during the quarter.
Record Revenue Supported by Copper and Molybdenum
The average London Metal Exchange copper price exceeded CAD 6 per pound during the period, according to Hamming. He also noted that COMEX copper pricing was approximately CAD 0.35 per pound above LME pricing. Most Florence sales this year are based on COMEX pricing, as are Gibraltar cathode sales.
Net income totaled CAD 22 million, or CAD 0.06 per share. Adjusted net income was CAD 40 million, or CAD 0.11 per share, after excluding unrealized losses and accretion, Hamming said.
The company recorded a CAD 24 million realized loss on hedging derivatives during the quarter related to CAD 5.40 copper call options established to support Florence’s construction ramp-up. For the third quarter, the company has collars with ceiling prices of CAD 7.50 and CAD 8.50 per pound and a minimum copper price of CAD 4.75 per pound. Beyond the third quarter, Hamming said the company does not expect to have further ceiling-price limits, while it intends to continue using out-of-the-money put options to protect against lower prices.
Florence Ramp-Up Continues
McDonald said Florence’s SX/EW plant has been operating smoothly, while the operating team continues to optimize the well field, including injection and recovery wells and solution flows through the plant. Initial wells have met expectations for flow rates and copper grades, he said.
In June, Florence added its first group of 20 new production wells. An additional 18 wells had recently received state regulatory approval and were being integrated into the well field during the week of the call, with further additions expected later in the month.
McDonald said the expansion is moving into a thicker area of the ore body, where wells are expected to be more productive. The company maintained its 2026 Florence production target of 30 million to 35 million pounds and its objective of reaching plant capacity by year-end, representing a run rate of roughly 7 million pounds per month.
Florence generated approximately CAD 10 million in EBITDA in the second quarter. The operation reported a C1 cost of CAD 4.72 per pound, though McDonald cautioned that the figure was not indicative of future costs because the operation remains in its ramp-up phase. He said a significant portion of site costs is fixed and should be spread across a larger production base as output rises.
Site operating costs at Florence were CAD 24 million, compared with roughly CAD 30 million in revenue. The company also spent CAD 26 million on well field development during the quarter. McDonald said well field development costs should decline from the second-quarter level in the second half, although the ultimate drilling requirements will depend on mine planning and the number of wells needed to support annual production of 85 million pounds.
Sulfuric acid remains Florence’s largest cost component. The company has a fixed-price contract at CAD 270 per tonne for 2026 and expects to negotiate 2027 pricing with suppliers this fall. McDonald said the company expects some price escalation next year but anticipates strong margins at Florence once the operation is fully ramped up.
Gibraltar Maintains Output, Faces Higher Sustaining Capital
Gibraltar produced 30 million pounds of copper in the quarter, marking its third consecutive quarter at that level. McDonald said grades, recoveries and mill throughput have been consistent during the past nine months as ore has been sourced from the lower benches of the Connector Pit.
The company expects to move into more challenging transitional ore later in the year, particularly in the fourth quarter. McDonald said this should result in lower grades and slightly lower recoveries, although Gibraltar remains on track to meet its annual production guidance of 110 million to 115 million pounds of copper.
Gibraltar cathode output was lower than expected after electrical issues emerged at the SX/EW plant following its late-April restart. Chief Operating Officer Richard Tremblay said the issues had been addressed, and production should improve during the second half with better plant performance and the second leach pad operating.
Total Gibraltar site costs were CAD 146 million, slightly above the prior quarter. The figure included CAD 28 million in capitalized stripping costs tied to the Connector Pit, where the strip ratio was 3.3-to-1. The company cited continued cost pressure from fuel, explosives, parts and equipment, although higher molybdenum prices and declining smelter treatment and refining charges provided offsets.
McDonald said the company has contracted almost all of its 2027 Gibraltar tonnage at an average treatment charge near negative CAD 140 per tonne. Under those agreements, the company also expects to receive payment for the gold content in Gibraltar concentrate.
Sustaining capital spending at Gibraltar reached approximately CAD 48 million in the first half of 2026. Management expects the elevated spending to continue, primarily due to tailings storage facility design changes and site water-management improvements.
Liquidity and Project Development
Total liquidity increased by CAD 20 million during the quarter to CAD 342 million, including CAD 186 million in cash. Hamming said the company has begun reviewing and prioritizing debt-repayment strategies as it seeks to reduce leverage, supported by rising Florence production and the absence of expected realized copper-price ceilings beyond the third quarter.
Separately, McDonald said the Yellowhead Copper Project received a positive readiness decision from the British Columbia Environmental Assessment Office and is moving into the next stages of the environmental assessment process. The British Columbia government recently identified Yellowhead as a priority project, he said.
The company also highlighted continued work under the New Prosperity Agreement with the Tŝilhqot’in National Government, an extension of its Harmony Gold Project option agreement with JDS, and ongoing network and product-marketing initiatives at the Aley Niobium Project.
About Taseko Mines (TSE:TKO)
Taseko Mines Ltd is a Canadian mining company. It is principally engaged in the production and sale of metals, as well as related activities, including exploration and mine development, within the province of British Columbia, Canada, and the State of Arizona, the United States. The Gibraltar, Aley, New Prosperity, and Harmony properties are located in British Columbia whereas Florence copper is in central Arizona.
