Taseko Mines (NYSE:TGB) +7.9% pre-market after saying Thursday it acquired copper collars for H1 2023 to secure a minimum copper price of US$3.75/lb and a ceiling price of US$4.72/lb for 30M lbs of copper.
Taseko (TGB) said the new collars extend the price protection in place for the current year, which secures a minimum copper price of US$4.00/lb for 42M lbs during H2 2022.
At recent copper prices, the current outstanding contracts would provide ~C$45M of additional cash flow over the next year.
“With this price protection in place, and with the improvements in head grades and copper production from Gibraltar that we expect in the second half of this year, our balance sheet will remain strong as we prepare for construction of our Florence Copper Project,” Taseko (TGB) President and CEO Stuart McDonald said.
Taseko Mines’ (TGB) copper collars protect it against most of the downside from copper prices going below $4/lb, Elephant Analytics writes in a bullish analysis posted on Seeking Alpha.