Taseko Mines (TSE:TKO) is positioning itself as a growing, North America-focused copper producer as it brings its Florence Copper project into production and looks to stabilize output at its long-running Gibraltar mine, according to comments made by Brian Bergot, who heads investor relations, during a fireside chat moderated by Lytham Partners Managing Partner Robert Blum.
Company overview and asset base
Bergot described Taseko as a “growing North American-based copper miner” with two producing assets—Gibraltar in British Columbia and Florence in Arizona. Gibraltar, which Taseko has operated for 20 years, is the company’s flagship operation and is “the second largest open pit copper mine in Canada and top 4 in North America,” he said.
Beyond its two operating assets, Bergot outlined a pipeline of development projects in British Columbia, including:
- Yellowhead Copper, near Kamloops, where Taseko began the environmental assessment process last year and has provided updated economics; Bergot noted additional permitting work remains.
- New Prosperity, which Bergot called Taseko’s original project dating back to the 1990s, where the company made what he described as an important announcement last year and is working with an Indigenous group.
- Aley niobium in northern B.C., which Bergot characterized as a longer-dated project.
He emphasized the company’s North American footprint as a strategic choice, citing rule of law, political stability, infrastructure, and reduced geopolitical risk relative to some global peers.
Strategy: mine life, costs, and jurisdiction
Asked about structural advantages through the commodity cycle, Bergot pointed to long mine lives and cost discipline. He said Gibraltar has “19 years of mine life ahead,” while Florence has a “22-year mine life.”
On costs, Bergot described Gibraltar as lower grade but “one of the most efficient copper mines in the world” on a cost-per-ton-milled basis, adding that the mine has generated positive cash flow “at all points in the copper price cycle.” He said Florence, once ramped up, is expected to be a “very low cost producer” with “first quartile” costs due to its mining method.
He also highlighted Taseko’s technical expertise and what he described as consistent cost discipline, alongside the advantages of operating in Canada and the U.S.
Florence ramp-up: key metrics and production targets
Bergot said 2026 will be Florence’s ramp-up year, with expected production of “30–35 million lbs” of copper. The company’s target is to reach capacity in 2027 at “80–85 million lbs.”
He explained that Florence uses in situ recovery (ISR), a process more commonly used in uranium than copper. Rather than mining and milling ore, the operation leaches copper “in place” by injecting solution through a well field and recovering copper-bearing solution, which is then processed through a conventional SXEW plant to produce copper cathodes.
As part of construction, Taseko drilled 100 injection and recovery wells, which are currently operating. Bergot said the company expects to drill “about another 100 wells this year” to raise flow rates, with a target of “about 13,000 gallons per minute.”
He identified two key performance indicators investors should watch during ramp-up: flow rates and pregnant leach solution (PLS) grade. Bergot said early leaching results were “a little bit ahead” of expectations for PLS grade, and that at present both flow rates and PLS grade are “exactly where we need them to be.”
Offtake partnership, trade policy, and potential pricing premiums
Blum and Bergot also discussed U.S. trade policy and potential copper import tariffs. Bergot said that while tariffs were a major topic last year—contributing to a differential between COMEX and LME pricing—“right now there is no tariff on copper imports, so there is no differential.” If the U.S. revisits tariffs mid-year and imposes one on copper cathodes, Bergot said a premium could return, which would benefit Florence because its cathode would remain in the North American market.
On strategic positioning, Bergot outlined the company’s partnership with Mitsui at Florence. He said Mitsui contributed $50 million to construction in exchange for an effective 2% copper stream and “81% of the offtake” from Florence. Mitsui also has a three-year option to pay an additional $50 million, converting the stream and offtake arrangement into a 10% equity ownership in Florence Copper, he said.
Bergot added that Mitsui believes there may eventually be a premium for “made in North America green copper,” though he said Taseko does not believe that market premium exists today.
Gibraltar outlook, hedging approach, and capital allocation
Turning to Gibraltar, Bergot said 2025 was challenging due to a major pit pushback and difficult ground conditions that affected mining rates, grades, and recoveries in the first half. He said performance improved in the back half of the year and that those improvements have continued into 2026.
Taseko’s production guidance for Gibraltar in 2026 is “110–115 million lbs,” which Bergot said would be a “10%–15% increase over last year.” He added that the connector pit will be the main ore source for the next 3–4 years and should support more consistent quarterly production. Bergot also noted the company restarted its SXEW plant at Gibraltar, producing “3–5 million lbs” of copper cathode annually, and said no major capital spending is expected there over the next few years beyond sustaining capital.
On price protection, Bergot said Taseko does not hedge “per se,” but has historically bought out-of-the-money copper put options to protect a minimum price. He said the company currently has collars in place for the next three months with a $4 floor and a $5.40 ceiling for most of Gibraltar production, implemented to protect cash flows during Florence’s capital spending period. He said the company expects to return in Q3 to its traditional approach of buying puts, and suggested Florence’s low cost—citing “$1.20 per pound”—could reduce the need for similar protection at that asset.
Looking ahead to cash use, Bergot said the company’s first priority is to de-lever after taking on debt to build Florence, with a target to reach its leverage goals “probably by the end of 2028, if not earlier” depending on the price environment. He said Yellowhead is still in the environmental phase with no significant spending yet, and that major capital would be years away. During that window, Bergot said Taseko believes there could be an opportunity for shareholder distributions before spending begins at Yellowhead, including potential dividends or share buybacks, which he said management has begun discussing with the board and shareholders.
Over the next 12–24 months, Bergot pointed to Florence ramp-up execution, Gibraltar’s production rebound and consistency, and progress at Yellowhead through the environmental assessment phase. He also said investors will focus on how the company plans to fund Yellowhead, which he said is currently estimated at about “CAD 2 billion,” adding that Taseko expects to be able to show the market a funding plan within the next couple of years.
About Taseko Mines (TSE:TKO)
Taseko Mines Ltd is a Canadian mining company. It is principally engaged in the production and sale of metals, as well as related activities, including exploration and mine development, within the province of British Columbia, Canada, and the State of Arizona, the United States. The Gibraltar, Aley, New Prosperity, and Harmony properties are located in British Columbia whereas Florence copper is in central Arizona.
