UPDATE: Taseko Announces 2012 Second Quarter Production and Sales Results
Taseko (NYSE: TGB) announces 2012 second quarter total production of 23.9 million pounds of copper and 379,000 pounds of molybdenum at its 75% owned Gibraltar Mine.
Total sales for the quarter were 26.4 million pounds of copper and 361,000 pounds of molybdenum. Taseko's 75% share of total sales was 19.8 million pounds of copper and 271,000 pounds of molybdenum which compares to 12.7 million and 354,000 pounds in the first quarter.
Additionally, last week the Company took advantage of short-term copper price strength to purchase copper put options for the first half of 2013. The put options have a strike price of US$3.00 per pound of copper and represent approximately 60% of Taseko's share of production.
Russell Hallbauer, President and CEO of Taseko, commented, "Given current commodity pricing volatility, we felt it was prudent to secure a minimum revenue stream for the first half of 2013. Our existing $3.50 copper put options, purchased at this time last year when the copper price was above $4.00, provided realized gains in June as the price dipped as low as $3.30. As an operator with 90% of our revenue generated from copper sales, we need to insure our profitability, especially when the global economy is distressed, as it is today."
Note: Gibraltar is a Joint Venture owned by Taseko Mines Limited (75%) and Cariboo Copper Corp. (25%). All production figures are reported on a 100% basis.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.