Taseko widens loss in 2013
Taseko's (TSE:TKO) share price dropped 4.5% to $2.33 per share on Wednesday following the release of its 2013 results which included a widening of the company's net loss.
The Canadian miner reported a net loss of $34.8 million for the year – a significant increase on the $9 million posted at the end of 2012. Major contributing factors were increased production costs and a $13.9 million write-down of marketable securities.
Meanwhile, EBITDA earnings – which don't include interest, taxes, depreciation and amortization – totalled $20 million, up from $18.5 million one year earlier. Revenues for the year increased by $36 million to $290 million.
The wider losses come after Taseko completed the ramp-up of its Gibraltar mine – the second largest open pit copper mine in BC. Total copper output from Gibraltar was 121.4 million pounds, a 35% increase on 2012.
"With the successful ramp up of the new Gibraltar concentrator complete, we can focus on controlling costs and generating the cash flows that the expansion was predicated on," CEO Russell Hallbauer said in a statement.
But financial results won't be the only thing moving Taseko's share price this month. Over the next two weeks Taseko is expecting a ruling from the Government of Canada on whether it will approve the company's proposed $1 billion New Prosperity copper mine.
First Nation and environmental groups have vehemently opposed the project while business leaders in BC and several politicians have rallied behind Taseko.
Taseko has four properties in BC, though Gibraltar is the only producing mine. The New Prosperity deposit is considered to be one of Canada's largest undeveloped copper-gold projects.