16th Jan 2020 15:19
(Alliance News) - Taseko Mines Ltd on Thursday said that technical work on its Yellowhead copper project has resulted in a 22% increase in recoverable copper reserves.
The recently-floated mining company said the project now has a net present value of CAD1.3 billion, around GBP763.5 million, reflecting a CAD500 million increase over the feasibility study carried out in 2014.
"The leverage this mine has to metal prices is huge, and with only a 10% increase in these assumptions, the pre-tax NPV climbs to CAD2 billion," Taseko said.
Taseko acquired the project in 2019 for around CAD13 million in Taseko stock.
"With an average copper equivalent grade of 0.35% combined with a low onsite operating cost of CAD10 per tonne milled, the mine site operating margin is CAD16 per tonne, or roughly CAD500 million per year for the first five years, at USD3.10 per pound copper. The 440,000 ounces of gold and 19 million ounces of silver, alone, will generate over CAD1 billion of by-product revenues over the mine's life," said Taseko Chief Executive Russell Hallbauer.
"Our plan is to add 85 million pounds of annual copper production from Florence Copper by 2022 and then another 200 million pounds from Yellowhead by 2025. A 280% production growth profile over six years to nearly 390 million pounds annually cannot be matched by any company in our sector," he added.
Taseko shares were untraded on Thursday afternoon in London, last quoted at 45.00 pence each.
By Ife Taiwo; [email protected]
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