VANCOUVER, July 5, 2018 /CNW/ - Taseko Mines Limited (TSX: TKO;
NYSE American: TGB) ("Taseko" or the "Company") announces that it has purchased copper put options with a US$2.80 strike price for five million pounds per month through December 2018.
"Our strategy has been consistent since 2009; acquire out of the money put options on an opportunistic basis to protect a
minimum copper price for a portion of the Company's production during short-term periods of copper price weakness," commented
Russell Hallbauer, President and CEO of Taseko.
"We acquired the third and fourth quarter put options when the price of copper was at or near a four-year high. The average
price for the put options was less than US$0.03 per pound, a small cost for the valuable insurance
that the options provide us with to protect our cash flow."
"While the medium to long-term view on copper remains very bullish, global macroeconomic issues have recently been weighing on
the copper price. With the put options in place, and a significant increase in copper production from Gibraltar which started in the second quarter, the Company is in good shape to manage a short-term pull back
in the copper price. Additionally, the Canadian dollar price of copper remains at a high level today, over C$3.80 per pound, providing the Company with strong operating margins," concluded Mr. Hallbauer.
Russell Hallbauer
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" within the meaning of applicable Canadian securities legislation and the
United States Private Securities Litigation Reform Act of 1995 (collectively, "forward looking statements") that were based on
Taseko's expectations, estimates and projections as of the dates as of which those statements were made. Any statements that
express, or involve discussions as to, expectations, believes, plans, objectives, assumptions or future events or performance
that are not historical facts, are forward-looking statements. 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 and costs related to the Company's exploration and development activities, such as those associated with
continuity of mineralization or determining whether mineral resources or reserves exist on a property;
- uncertainties related to the accuracy of our estimates of mineral reserves, mineral resources, production rates and timing
of production, future production and future cash and total costs of production and milling;
- uncertainties related to feasibility studies that provide estimates of expected or anticipated costs, expenditures and
economic returns from a mining project;
- uncertainties related to the ability to obtain necessary title, licenses and permits for development projects and project
delays due to third party opposition;
- our ability to comply with the extensive governmental regulation to which our business is subject;
- 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, particularly laws, regulations and policies;
- changes in general economic conditions, the financial markets and in the demand and market price for copper, gold and other
minerals and commodities, such as diesel fuel, 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;
- the effects of forward selling instruments to protect against fluctuations in copper prices and exchange rate movements and
the risks of counterparty defaults, and mark to market risk;
- the risk of inadequate insurance or inability to obtain insurance to cover mining risks;
- the risk of loss of key employees; 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;
- environmental issues and liabilities associated with mining including processing and stock piling ore;
- labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which
we operate mines, or environmental hazards, industrial accidents, equipment failure or other events or occurrences, including
third party interference that interrupt the production of minerals in our mines.;
- the availability of, and uncertainties relating to the development of, infrastructure necessary for the development of our
projects;
- our reliance upon key personnel; and
- uncertainties relating to increased competition and conditions in the mining capital markets.
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.sedar.com,
including the "Risk Factors" included in our Annual Information Form.
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SOURCE Taseko Mines Limited
View original content: http://www.newswire.ca/en/releases/archive/July2018/05/c3546.html