Ivanhoe’s Kipushi zinc mine in the DRC officially reopens
The restart marked exactly a century since the mine first went into production.
Taseko Mines (TSX, LON: TKO) (NYSE: TGB) said on Monday it’s acquiring the remaining 12.5% interest in the Gibraltar mine, the second largest open-pit copper operation in Canada, from current holders Dowa Metals & Mining and Furukawa.
The move will boost the Canadian miner’s attributable copper production by 14% and increase cash flow as the company progresses with construction at the Florence copper project in Arizona, CEO Stuart McDonald said.
The definitive agreement will see Taseko pay C$117 million ($86.1m) over a period of ten years for the shares held by Dowa and Furukawa in Cariboo Copper Corp.
With the move, the Vancouver-based company will be the sole owner of Cariboo Copper Corp, effectively gaining a 100% interest in Gibraltar in south-central British Columbia.
It also gives it additional offtake rights as the Cariboo offtake contract comes back to Taseko, providing potential cost savings, McDonald said.
On top of the initial C$5 million ($3.7m) to be paid to Dowa and Furukawa (C$2.5 million each) after closing the deal, Taseko may be responsible for contingent payments depending on copper prices and Gibraltar’s cashflow, the company said.
“We have established a positive relationship with Dowa and Furukawa over the last 14 years,” McDonald noted. “Given that both groups are reducing their copper smelting businesses and are exiting their copper mining investments, we’ve been able to structure this exit from our long-term partnership in a mutually beneficial manner.”
The company posted its highest ever revenue of $525 million for 2023 earlier this month, thanks mainly to the contribution of Gibraltar mine. The revenue represented a 34% increase compared to 2022.
In 2023, the mine produced a total of 122.6 million pounds of copper, with an average copper recovery rate of 82.6% and head grade of 0.25%. This production was higher than the company’s original guidance and also 26% higher than in 2022.
Taseko is also close to beginning production at Florence, which is expected to happen in the fourth quarter of 2025.
