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Taseko Mines (TGB) Earnings Miss Estimates in Q4, Rise Y/Y
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Taseko Mines Limited (TGB - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 6 cents, which missed the Zacks Consensus Estimate of 7 cents. The bottom line marked a solid improvement from adjusted earnings of 1 cent in the year-ago quarter, aided by the solid performance of the Gibraltar mine.
Including one-time items, TGB reported earnings of 17 cents per share in the fourth quarter of 2023 against a loss of 1 cent in the fourth quarter of 2022.
Taseko Mines’s revenues were $113 million in the quarter under review, up 54% from the year-ago quarter.
Taseko Mines Limited Price, Consensus and EPS Surprise
The cost of sales rose 28.5% year over year to CAD94 million ($69 million). The gross profit was CAD$59.8 million ($44 million), up 117% from the year-ago quarter. The gross margin was 38.9% compared with the year-ago quarter’s 27.3%.
The adjusted EBITDA was CAD$69 million ($51 million), which marked 96% growth from the year-earlier period. The EBITDA margin was 45% in the quarter under review compared with the year-ago quarter’s 35%.
Total operating cash costs were $1.91 per pound produced, lower than $2.75 per pound in the fourth quarter of 2022.
Production Details
The Gibraltar mine produced 34 million pounds of copper in the fourth quarter of 2023, which was up 28% year over year. This brought the yearly total to 123 million pounds. Annual production improved 26% year over year and also surpassed the company’s guidance. The increased production was credited to enhanced ore grades and recoveries, with the lower benches of the Gibraltar pit delivering the anticipated higher grades and more uniformly mineralized zones.
Molybdenum production for the fourth quarter was 369 thousand pounds and 1.2 million pounds in 2023.
2023 Results
Taseko Mines reported adjusted earnings per share of 11 cents, which missed the Zacks Consensus Estimate of 12 cents. The company had reported adjusted earnings per share of 1 cent in 2022.
Including one-time items, TGB reported earnings of 21 cents per share in 2023 against a loss of 7 cents in 2022.
Taseko Mine’s revenues grew 34% year over year to a record CAD525 million ($389 million) in 2023, surpassing the consensus estimate of $380 million. The solid results reflect higher copper sales and an increase in the company’s effective interest in the Gibraltar Mine, from 75% to 87.5%, in March 2023.
Gibraltar sold 120.7 million pounds of copper in 2023. Average realized copper prices were $3.84 per pound for the year
Cash flow from operations in 2023 was CAD151 million ($112 million), up 86% year over year.
Guidance for 2024
The Gibraltar Mine is expected to continue to benefit from Gibraltar pit ore, which will be the main source of mill feed for the first half of 2024, before the transition to the connector pit. In January, TGB had a mill downtime in concentrator #2 for a planned major component replacement, which has been duly completed.
In the second quarter of 2024, the company anticipates concentrator #1 to be shut down for an estimated three weeks for the in-pit crusher relocation and other mill maintenance. Taking into account the additional downtime this year, the Gibraltar mine is expected to produce approximately 115 million pounds of copper.
Update on Florence Copper
The company stated that the construction of the commercial production facility at Florence is advancing with recent site activities focused on-site preparations, earthworks and civil work for the commercial wellfield. Wellfield drilling commenced in February 2024 and the construction of the SX/EW plant and associated surface infrastructure is scheduled to get underway in the second quarter of 2024.
First copper production is expected in the fourth quarter of 2025. Copper production is expected to be 1.5 billion over the life of the mine.
Price Performance
Shares of Taseko Mines have gained 14.5% in a year compared with the industry’s 1.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Taseko Mines currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Ecolab Inc. ECL, Alpha Metallurgical Resources, Inc. (AMR - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . ECL and AMO currently sport a Zacks Rank #1 (Strong Buy), and CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 41.7% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 134.6% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 52% in a year.
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Taseko Mines (TGB) Earnings Miss Estimates in Q4, Rise Y/Y
Taseko Mines Limited (TGB - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 6 cents, which missed the Zacks Consensus Estimate of 7 cents. The bottom line marked a solid improvement from adjusted earnings of 1 cent in the year-ago quarter, aided by the solid performance of the Gibraltar mine.
Including one-time items, TGB reported earnings of 17 cents per share in the fourth quarter of 2023 against a loss of 1 cent in the fourth quarter of 2022.
Taseko Mines’s revenues were $113 million in the quarter under review, up 54% from the year-ago quarter.
Taseko Mines Limited Price, Consensus and EPS Surprise
Taseko Mines Limited price-consensus-eps-surprise-chart | Taseko Mines Limited Quote
The cost of sales rose 28.5% year over year to CAD94 million ($69 million). The gross profit was CAD$59.8 million ($44 million), up 117% from the year-ago quarter. The gross margin was 38.9% compared with the year-ago quarter’s 27.3%.
The adjusted EBITDA was CAD$69 million ($51 million), which marked 96% growth from the year-earlier period. The EBITDA margin was 45% in the quarter under review compared with the year-ago quarter’s 35%.
Total operating cash costs were $1.91 per pound produced, lower than $2.75 per pound in the fourth quarter of 2022.
Production Details
The Gibraltar mine produced 34 million pounds of copper in the fourth quarter of 2023, which was up 28% year over year. This brought the yearly total to 123 million pounds. Annual production improved 26% year over year and also surpassed the company’s guidance. The increased production was credited to enhanced ore grades and recoveries, with the lower benches of the Gibraltar pit delivering the anticipated higher grades and more uniformly mineralized zones.
Molybdenum production for the fourth quarter was 369 thousand pounds and 1.2 million pounds in 2023.
2023 Results
Taseko Mines reported adjusted earnings per share of 11 cents, which missed the Zacks Consensus Estimate of 12 cents. The company had reported adjusted earnings per share of 1 cent in 2022.
Including one-time items, TGB reported earnings of 21 cents per share in 2023 against a loss of 7 cents in 2022.
Taseko Mine’s revenues grew 34% year over year to a record CAD525 million ($389 million) in 2023, surpassing the consensus estimate of $380 million. The solid results reflect higher copper sales and an increase in the company’s effective interest in the Gibraltar Mine, from 75% to 87.5%, in March 2023.
Gibraltar sold 120.7 million pounds of copper in 2023. Average realized copper prices were $3.84 per pound for the year
Cash flow from operations in 2023 was CAD151 million ($112 million), up 86% year over year.
Guidance for 2024
The Gibraltar Mine is expected to continue to benefit from Gibraltar pit ore, which will be the main source of mill feed for the first half of 2024, before the transition to the connector pit. In January, TGB had a mill downtime in concentrator #2 for a planned major component replacement, which has been duly completed.
In the second quarter of 2024, the company anticipates concentrator #1 to be shut down for an estimated three weeks for the in-pit crusher relocation and other mill maintenance. Taking into account the additional downtime this year, the Gibraltar mine is expected to produce approximately 115 million pounds of copper.
Update on Florence Copper
The company stated that the construction of the commercial production facility at Florence is advancing with recent site activities focused on-site preparations, earthworks and civil work for the commercial wellfield. Wellfield drilling commenced in February 2024 and the construction of the SX/EW plant and associated surface infrastructure is scheduled to get underway in the second quarter of 2024.
First copper production is expected in the fourth quarter of 2025. Copper production is expected to be 1.5 billion over the life of the mine.
Price Performance
Shares of Taseko Mines have gained 14.5% in a year compared with the industry’s 1.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Taseko Mines currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Ecolab Inc. ECL, Alpha Metallurgical Resources, Inc. (AMR - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . ECL and AMO currently sport a Zacks Rank #1 (Strong Buy), and CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 41.7% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 134.6% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 52% in a year.