Taseko Mines (TSE:TKO) used its fourth-quarter 2025 earnings call to highlight the start of copper production at its Florence Copper project and a stronger finish to the year at its Gibraltar mine, while outlining expectations for higher Gibraltar output in 2026 and discussing progress at its development pipeline.
Florence Copper begins producing copper
President and CEO Stuart McDonald said Florence Copper began producing copper “a few days ago” after the company turned on the electrowinning circuit, with copper now being plated and first cathodes expected to be harvested within days.
For 2026, management said Florence is expected to produce approximately 30–35 million pounds of copper. McDonald added that by the time the company reports first-quarter results, it expects to provide additional operating metrics on flow rates, PLS grade, and production from initial wells.
A key ramp-up factor is expanding the wellfield and bringing on new wells. Drilling resumed in the fourth quarter with three drill rigs operating; a fourth rig is expected to be added shortly. Management said it took time for new drilling crews to ramp up, but it expects improved productivity going forward. McDonald also said the mine plan contemplates adding 80–100 new wells annually for the next decade or longer, describing it as normal course for Florence.
Gibraltar production improves; safety incident noted
McDonald reiterated that safety is a core value and said a fatal accident involving a contract worker occurred at Gibraltar in November. He said the company is “deeply saddened” and that findings from the incident are being reviewed with employees on site.
Operationally, Gibraltar posted what management described as a strong fourth quarter. Copper head grades increased to 0.26% and recoveries were 81%, resulting in 31 million pounds of copper production. Throughput was about 8% below design capacity due to unscheduled mill downtime, which slightly offset the benefits of higher grades and recoveries.
Molybdenum production was 800,000 pounds in the quarter, also benefiting from higher grades and recoveries. McDonald said molybdenum output in Q4 was the best production quarter in the mine’s history.
With higher production, total operating costs declined to $2.47 per pound in Q4. For full-year 2025, Gibraltar produced 98 million pounds of copper and 1.9 million pounds of molybdenum at a cost of $2.66 per pound. Management said production was weighted to the second half of the year as mining advanced deeper into the Connector pit to access higher grades and better ore quality in the third and fourth quarters.
2026 outlook: higher Gibraltar output, conservative grade view
Looking ahead, management said mining operations are “much better situated” in the Connector pit, with expectations for higher annual production and less quarterly variability than in 2025. However, the company said it is taking a more conservative view on copper grades due to the impact of small, higher-grade zones included in the reserve model that have not been realized in mining to date.
McDonald said the company is reinterpreting drill hole data that included isolated, ultra-high-grade results that had skewed the geological model, after mining through some areas did not deliver the expected grades. He also said that over the past 18 months Gibraltar encountered more oxide and supergene/transitional ore in the Connector pit than originally expected. Oxide ore has been stacked on leach pads for processing through the Gibraltar SX/EW plant, which management described as a positive that could allow the SX/EW plant to run longer than originally envisioned. Supergene ore, however, is processed through the concentrator with lower recoveries, and management said the model will be adjusted to reflect what is being seen in the pit.
For 2026, Taseko expects average recoveries between 75% and 80%, similar to the second half of 2025. Based on these factors, Gibraltar is expected to produce 110–115 million pounds of copper in 2026. Management said it expects annual production to remain in roughly the same range (plus or minus 5%) through the end of 2028 while the Connector pit remains the primary ore source.
On operating assumptions, management said it targets throughput around design capacity of 85,000 tonnes per day, or just over 30 million tonnes per year. On grade, management referenced a 0.25 reserve grade in the Connector pit but said it is budgeting potentially 5%–10% lower than that given recent experience.
Financial results: record revenue, higher Q4 cash flow
Chief Financial Officer Bryce Hamming reported total copper sales of 32 million pounds in Q4, including 800,000 pounds of cathode from Gibraltar’s SX/EW facility, at an average realized price of $5.13 per pound. Including $25 million of molybdenum revenue, total quarterly revenue was CAD 244 million.
For full-year 2025, the company recorded CAD 673 million of revenue from sales of 99 million pounds of copper and 1.9 million pounds of molybdenum, with an average realized copper price of $4.61 per pound. Hamming said both quarterly and annual revenue were the highest Taseko has recorded since it began owning 100% of the operation, adding that results benefited from a generally weaker Canadian dollar.
Net income for Q4 was CAD 4.5 million, or CAD 0.01 per share. On an adjusted basis, excluding unrealized marks on liabilities tied to higher copper prices and other unrealized items, adjusted earnings were CAD 42 million, or CAD 0.11 per share. Adjusted EBITDA in Q4 was CAD 116 million, compared with CAD 56 million in the prior-year quarter and CAD 62 million in Q3. For the full year, adjusted EBITDA was CAD 230 million, slightly higher than the prior year, with Hamming noting that Q4 contributed about half of annual earnings.
Cash flow from operations was CAD 101 million in Q4, with Gibraltar contributing free cash flow of CAD 72 million. For the year, Gibraltar generated CAD 220 million of cash flow from operations.
Capital spending, hedging, and liquidity
Hamming said Florence’s capital project was completed in the fourth quarter. Capital spending fell to $8 million during the quarter as construction wound down. Final capital costs for the commercial facility were $275 million, about 3% over the revised early-2024 budget. In addition, $60 million of site operating and commissioning costs were capitalized in Q4; with cathode production underway, the company expects to begin expensing operating costs that were previously capitalized, beginning in the first quarter.
On risk management, Hamming said the company has copper price collars in place to support Florence project finance, with a ceiling price of $5.40 per pound through the end of June and a year-end mark-to-market of $22 million. For the third quarter of 2026, the company added collars securing a minimum price of $4.75 per pound for 8 million pounds per month, with higher ceiling prices of $7.50 and $8.50 per pound. Hamming said that after Florence’s ramp-up, Taseko plans to return to a longer-term strategy of purchasing copper put options over shorter horizons while leaving upside exposure more open with two operating mines.
The company ended the year with CAD 188 million in cash and an undrawn $110 million revolving credit facility, for total liquidity of about CAD 340 million. Hamming said that with development capital spending largely behind it at Florence and strong expected cash flows from Gibraltar in 2026, the balance sheet should improve, and management plans to prioritize deleveraging later in the year.
During Q&A, management also discussed project pipeline work. McDonald said Yellowhead is now primarily a permitting project, with active engagement with regulators and local communities and a detailed project description expected to be filed later in 2026. He said the company anticipates advancing discussions with potential joint venture partners over the next year or two. On New Prosperity, McDonald referenced an agreement signed with the Tŝilhqot’in Nation in 2025 and said the company will respect the Nation’s land-use planning process. He also said work continues on the Aley niobium project, including looking for potential offtake and development partners.
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.
