Revenue for the quarter reached $174 million, falling 9.7% below the consensus estimate of $192.67 million. The shortfall was driven by a 4.5% decline in copper sales volume relative to the prior year, offset only partially by a modest lift in copper prices. The company’s adjusted earnings per share of $0.02 were 61.9% below the $0.0525 forecast, reflecting higher operating costs and a one‑time impairment charge related to the Florence Copper project’s construction phase.
The company posted a net loss of $28 million, or $0.09 per share, while adjusted net income rose to $6 million, or $0.02 per share. The loss was largely attributable to a $12 million non‑cash impairment on the Florence Copper project and higher interest expense on the $75 million revolver that was paid down with the equity financing. Adjusted net income benefited from a $4 million tax benefit and a $2 million gain on the sale of a non‑core asset.
Gibraltar mine production rebounded to 27.6 million pounds of copper, including 895 thousand pounds of cathode. Copper grades improved to 0.22% and recoveries climbed to 77%, enabling C1 costs to drop to $2.87 per pound. The cost reduction was driven by higher by‑product credits from molybdenum sales and lower off‑property expenses, offsetting a modest increase in labor costs. The improved grades and recoveries are expected to sustain the cost advantage into the fourth quarter.
The Florence Copper project reached a milestone with the general contractor achieving substantial completion in September. First cathode production is expected early next year, and the company has restarted well‑field drilling. The project’s in‑situ copper recovery technology is positioned to deliver lower operating costs than conventional open‑pit operations, supporting the company’s long‑term strategy to diversify beyond Gibraltar.
In October, Taseko completed a $173 million equity financing, which was used to repay the $75 million revolver and fund the next phase of drilling at Florence. The infusion strengthened liquidity and reduced debt‑to‑equity, giving management flexibility to accelerate the project’s ramp‑up. The company’s balance sheet now shows a cash position of $120 million and a debt‑to‑equity ratio of 0.4, a significant improvement from the 0.7 ratio reported in Q3 2024.
Management guided that copper prices are expected to remain strong in 2026, citing continued demand from electrification and constrained mine supply. The company plans to ramp Florence production to 40–50 million pounds of copper in 2026 and over 80 million pounds in 2027. The guidance reflects confidence in the project’s cost structure and the company’s ability to capture higher copper prices, but the Q3 miss signals that execution costs remain a concern.
Investors reacted negatively to the earnings miss, with analysts noting that the company’s revenue and EPS shortfalls outweighed the operational gains at Gibraltar and progress at Florence. The miss underscored the importance of cost discipline and the need for the company to manage the transition from a single‑asset producer to a diversified copper producer. The market’s focus on the earnings miss highlights the premium placed on meeting consensus estimates, even as the company demonstrates operational improvements and a strong long‑term strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.