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Taseko Secures Full Ownership of Gibraltar Mine

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Taseko Secures Full Ownership of Gibraltar Mine

Taseko’s bold move to acquire full ownership of the Gibraltar mine is a strategic masterstroke. The Vancouver-based company has sealed the deal by agreeing to pay C$117 million (approximately $86 million) over a decade to acquire the shares held by Dowa and Furukawa in Cariboo Copper Corp.

This acquisition transforms Taseko into the solitary proprietor of Cariboo Copper Corp, effectively granting the firm a 100% stake in the renowned Gibraltar mine, nestled in the heart of south-central British Columbia.

The deal not only solidifies Taseko’s ownership but also enhances its offtake rights, as the Cariboo offtake contract returns to Taseko. This reinstated agreement promises potential cost savings, a significant advantage for the company moving forward, as highlighted by McDonald.

In addition to the initial payment of C$5 million ($3.7 million) earmarked for Dowa and Furukawa (C$2.5 million each) upon deal closure, Taseko could potentially receive contingent payments contingent on copper prices and the cashflow of the Gibraltar mine, Taseko revealed.

Reflecting on the decades-long relationship with Dowa and Furukawa, McDonald stated, “We have established a positive relationship with Dowa and Furukawa over the last 14 years.” With both entities scaling back their copper operations and divesting their interests in copper mining, Taseko orchestrated an exit from this partnership that is advantageous for all parties involved.

Notably, Taseko recently achieved a record-high revenue of $525 million in 2023, primarily attributed to the outstanding performance of its Gibraltar mine. This revenue surge reflects a substantial 34% increase compared to the preceding year of 2022.

The Gibraltar mine excelled in 2023, producing an impressive total of 122.6 million pounds of copper. This remarkable output boasted an average copper recovery rate of 82.6% and a head grade of 0.25%. Surpassing the company’s initial projections, this production volume marked a remarkable 26% increase over the figures recorded in 2022.

Looking ahead, Taseko is on the cusp of commencing operations at Florence. The timeline for the onset of production at Florence is slated for the fourth quarter of 2025, painting an optimistic outlook for Taseko’s future endeavours.