Russ saysRussell Hallbauer, President and CEO of Taseko stated, "Over the past two years we have invested $250 million into the Gibraltar Mine to increase production and reduce operating costs. The results we are now reporting are validating the importance of these initiatives. First quarter production and our low cost structure combined with a strengthened copper price will provide healthy margins and cash flow.
In only three months the price of copper, as quoted on the London Metal Exchange, has risen from a low of US$1.26/lb in late December to nearly US$1.90/lb today. At the same time, after major cost reduction initiatives our total cash costs have dropped to approximately US$1.15/lb for the first quarter."
Mr. Hallbauer continued, "The dramatic rebound in copper prices is encouraging and has allowed us to recommence work on our Phase II expansion, however, given the general uncertainty in the global economy, we will remain extremely cautious as we proceed with our capital spending to ensure we maintain sufficient working capital lines. As market conditions stabilize, we expect to complete the necessary work to increase the Gibraltar concentrator capacity to 55,000 tons per day, or 115 million pounds of annual copper production."