Taseko Provides Construction Update on Florence Copper Project

Rhea-AI Summary

Taseko Mines (NYSE: TGB) reports significant progress on its Florence Copper project in Arizona, with construction now over 90% complete. The project remains on track for first copper cathode production by end-2025, having achieved 900,000 project hours with zero reportable injuries or environmental incidents.

Key milestones include completion of planned injection and recovery wells, and energization of the 69kV electrical substation. The facility aims to reach 85 million pounds per year production capacity. Management highlights strong project economics amid potential 50% tariffs on U.S. copper imports, which have driven Comex copper prices to record levels.

Positive

• Construction over 90% complete with zero reportable injuries or environmental incidents
• Project remains on schedule for first copper production by end-2025
• All planned injection and recovery wells successfully completed
• Strong project economics enhanced by record Comex copper prices and potential U.S. import tariffs
• Facility designed for significant 85 million pound annual production capacity

Negative

• High level of indebtedness could impact financial condition
• Project faces risks from inflation, supply chain disruptions, and material/labor shortages
• Operational costs may be affected by increasing interest rates and borrowing costs

Insights

Mining Industry Expert

Taseko's Florence Copper project at 90% completion, on track for production this year, positioning well amid potential US copper tariffs.

The construction update from Taseko's Florence Copper project demonstrates exceptional execution with the facility over 90% complete and on schedule for first copper cathode production in 2025. The completion of all planned injection and recovery wells represents a critical milestone, as these wells form the backbone of the in-situ recovery method that makes this project unique in the copper mining landscape.

The energization of the 69kV electrical substation marks another significant technical achievement, providing the substantial power infrastructure needed for commercial operations. From a safety perspective, 900,000 project hours with zero reportable injuries is remarkable in the mining construction sector and indicates strong operational protocols.

The transition from peak construction (with staffing now reducing from Q1 levels) to commissioning phase signals the project is entering its final pre-production stages. Florence's projected 85 million pounds per year capacity becomes particularly significant in the context of potential 50% tariffs on copper imports to the US. As a domestic producer, Taseko would be strategically positioned to benefit from any Comex premium that might emerge from such trade policies.

What's particularly noteworthy is Florence's position as an in-situ recovery copper project - a method that dissolves copper minerals in place underground and pumps the solution to surface for processing. This technique typically offers lower capital intensity and reduced environmental footprint compared to conventional open-pit mining, which likely contributes to the smooth construction progress observed. The company's focus on operational readiness, including staffing and training protocols, demonstrates appropriate preparation for the critical commissioning phase beginning this fall with wellfield acidification.

VANCOUVER, British Columbia, July 22, 2025 (GLOBE NEWSWIRE) -- Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) (“Taseko” or the "Company") is pleased to update the progress at its 100%-owned Florence Copper project in Florence, Arizona.

At the end of June, construction of the commercial production facility was over 90% complete, and the project remains on schedule for first copper cathode production before the end of this year. Over 900,000 project hours have been worked with no reportable injuries or environmental incidents on the project to date. Currently, there are approximately 330 construction and support personnel on site, down from the peak levels in the first quarter.

Stuart McDonald, President & CEO of Taseko, commented, “The first 18 months of construction has gone exceptionally well, demonstrating the quality and experience of our on-site owner’s team and contractors. Construction activities are advancing on plan and project areas will soon start the transition to commissioning. A few notable milestones have recently been achieved. In the wellfield, all the injection and recovery wells planned for the construction phase have now been drilled and completed. Drilling will recommence after plant commissioning to expand the current wellfield and allow for copper production to ramp up to the full 85 million pound per year plant capacity. Also, last week, a key component of the site infrastructure was completed with APS (the local utility) energizing the site 69kV electrical substation.”

“Operational readiness remains a key focus for site management. Hiring full-time staff, training, and developing operational workflows are all ongoing to ensure our team is well-positioned for commercial operations in just a few months. A detailed operating plan for the 2026 ramp up is also being developed and will be finalized after acidification of the wellfield commences in the fall.”

“Florence Copper will be the next major U.S. supplier of domestically produced copper cathode. The potential for 50% tariffs on copper imports into the United States has driven the Comex copper price to record levels in recent weeks. It’s a great time to be bringing on a new U.S.-based copper mine, and a high Comex copper price premium would provide a further boost to Florence Copper’s already strong project economics,” concluded Mr. McDonald.

For further information on Taseko, see the Company’s website at tasekomines.com or contact:

• Investor enquiries Brian Bergot, Vice President, Investor Relations – 778-373-4554
  

Stuart McDonald
President and CEO

No regulatory authority has approved or disapproved of the information contained in this news release

Caution Regarding Forward-Looking Information

This document contains “forward-looking statements” that were based on Taseko’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These included but are not limited to:

• uncertainties about the future market price of copper and the other metals that we produce or may seek to produce;
• changes in general economic conditions, the financial markets and in the market price for our input costs including due to inflationary impacts, such as diesel fuel, acid, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, and the continued availability of capital and financing;
• inherent risks associated with mining operations, including our current mining operations at Gibraltar and our planned mining operations at Florence Copper, and their potential impact on our ability to achieve our production estimates;
• uncertainties as to our ability to achieve reduced costs for Gibraltar (as defined below) and to otherwise control our operating costs without impacting our planned copper production;
• our high level of indebtedness and its potential impact on our financial condition and the requirement to generate cash flow to service our indebtedness and refinance such indebtedness from time to time;
• the increases in interest rates, by central banks may increase our borrowing costs and impact the profitability of our operations;
• our ability to draw down on our financing arrangements for the construction of Florence Copper is subject to our meeting the required conditions for drawdown;
• the amounts we are required to pay for our acquisition of Cariboo will increase with higher copper prices;
• the risk of inadequate insurance or inability to obtain insurance to cover our business risks;
• uncertainties related to the accuracy of our estimates of Mineral Reserves (as defined below), Mineral Resources (as defined below), production rates and timing of production, future production and future cash and total costs of production and milling;
• the risk that we may not be able to expand or replace Mineral Reserves as our existing Mineral Reserves are mined;
• the risk that the results from our development of Florence Copper will not meet our estimates of remaining construction costs, operating expenses, revenue, rates of return and cash flows from operations which have been projected by the technical report for Florence;
• the risk of cost overruns or delays in our construction of the commercial facilities at Florence Copper, resulting in not commencing commercial production within our current projected timeline or within our current projected cost estimates;
• uncertainties related to the execution plan for the construction of Florence Copper and the commencement of commercial operations resulting from inflation risk, supply chain disruptions, material and labour shortages or other execution risks;
• our ability to comply with all conditions imposed under the APP and UIC permits for the construction and operation of Florence Copper;
• the availability of, and uncertainties relating to, any additional financing necessary for the continued operation and development of our projects, including with respect to our ability to obtain any additional construction financing, if needed, to complete the construction and commencement of commercial operations at Florence Copper;
• shortages of water supply, critical spare parts, maintenance service and new equipment and machinery or our ability to manage surplus water on our mine sites may materially and adversely affect our operations and development projects;
• our ability to comply with the extensive governmental regulation to which our business is subject;
• uncertainties related to our ability to obtain necessary title, licenses and permits for our development projects and project delays due to third party opposition;
• uncertainties related to Indigenous people’s claims and rights, and legislation and government policies regarding the same;
• our reliance on the availability of infrastructure necessary for development and on operations, including on rail transportation and port terminals for shipping of our copper concentrate production from Gibraltar, and rail transportation and power for the feasibility of our other British Columbia development projects;
• uncertainties related to unexpected judicial or regulatory proceedings;
• changes in, and the effects of, the laws, regulations and government policies affecting our exploration and development activities and mining operations;
• potential changes to the mineral tenure system in British Columbia, which is undergoing reform for compliance with the Declaration Act (British Columbia);
• our dependence solely on our 100% interest in Gibraltar for our revenues and our operating cash flows;
• our ability to extend existing concentrate off-take agreements or enter into new agreements;
• environmental issues and liabilities associated with mining including processing and stockpiling ore;
• labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, industrial accidents, equipment failure or other events or occurrences, including third party interference that interrupt the production of minerals in our mines;
• environmental hazards and risks associated with climate change, including the potential for damage to infrastructure and stoppages of operations due to extreme cold, forest fires, flooding, drought, earthquakes or other natural events in the vicinity of our operations;
• litigation risks and the inherent uncertainty of litigation;
• our actual costs of reclamation and mine closure may exceed our current estimates of these liabilities;
• our ability to renegotiate our existing union agreement for Gibraltar when it expires in May 2027;
• the capital intensive nature of our business both to sustain current mining operations and to develop any new projects including Florence Copper;
• our ability to develop new mining projects may be adversely impacted by potential indigenous joint decision-making and consent agreements being implemented by the Government of British Columbia under the B.C. Declaration on the Rights of Indigenous Peoples Act;
• our reliance upon key personnel;
• the competitive environment in which we operate;
• the effects of forward selling instruments to protect against fluctuations in copper prices and other input costs including diesel and acid;
• the risk of changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates;
• uncertainties relating to the war in Ukraine, the Israel-Hamas conflict and other future geopolitical events including social unrest, which could disrupt financial markets, supply chains, availability of materials and equipment and execution timelines for any project development;
• recent changes to U.S. trade policies and tariff risks may adversely impact overall economic conditions, copper markets, supply chains, metal prices and input costs; and
• other risks detailed from time-to-time in our annual information forms, annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators, and those risks which are discussed under the heading “Risk Factors”.
  

For further information on Taseko, investors should review the Company’s annual Form 40-F filing with the United States Securities and Exchange Commission www.sec.gov and home jurisdiction filings that are available at www.sedarplus.ca, including the “Risk Factors” included in our Annual Information Form.

FAQ

When will Taseko's Florence Copper project begin production?

Taseko's Florence Copper project is scheduled to begin first copper cathode production before the end of 2025, with construction currently over 90% complete.

What is the production capacity of Taseko's Florence Copper project?

The Florence Copper project is designed to reach a full production capacity of 85 million pounds of copper per year after wellfield expansion.

How many construction workers are currently at Taseko's Florence Copper site?

There are currently approximately 330 construction and support personnel on site, down from peak levels in Q1 2025.

What major milestones has Taseko's Florence Copper project achieved?

The project has completed all planned injection and recovery wells and achieved energization of the 69kV electrical substation. It has also logged 900,000 project hours with zero reportable injuries.

How will U.S. copper import tariffs affect Taseko's Florence Copper project?

Potential 50% tariffs on U.S. copper imports have driven Comex copper prices to record levels, which would enhance Florence Copper's already strong project economics.