Mr. Russell Hallbauer reports
TASEKO MINES EXTENDS COPPER PRICE PROTECTION STRATEGY
Taseko Mines Ltd. has recently extended its copper price protection strategy by purchasing put options covering 41 million pounds of copper at a strike price of $3.75 (U.S.) per pound for the second half of this year. The price protection now in place for the next nine months should secure a minimum operating margin of approximately $165-million for 2021.
Stuart McDonald, president of Taseko, commented: "With the uncertainty in the world today around the impacts of COVID-19 and ongoing volatility in metal markets caused by a number of global economic and political issues, we felt that it was prudent to extend our price protection strategy. Protecting a significant operating margin in 2021 allows the company to focus on and advance near-term capital growth plans related to our Florence copper project, and also fund ongoing environmental assessment work at our Yellowhead project. This approach to managing copper price volatility does not cap our cash flow should copper prices continue to rise, as many of the world's largest banks and trading entities are indicating could occur.
"Taseko's experienced senior management team, many of whom have been involved with and observed the base metals business for over 40 years, has been consistent in managing the financial performance of the company. The team's decisions have held the company in good stead over the past decade and protected shareholder value at all points of the copper price cycle, and we will continue to protect against downside risks while positioning the company for success in a strong copper market in the years ahead," concluded Mr. McDonald.
We seek Safe Harbor.
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