NYSE$TKO

TKO Group Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Taseko reported its second quarter 2024 financial and operational performance, including a net loss of $11 million and adjusted EBITDA of $71 million, with copper production impacted by a strike and planned downtime.

Taseko Mines Limited reported a net loss of $11 million ($0.04 loss per share) and adjusted net income of $31 million ($0.10 per share) for Q2 2024. Adjusted EBITDA was $71 million, benefiting from a $26 million insurance recovery. Copper production at Gibraltar was 20.2 million pounds, impacted by a strike and planned downtime. Construction at the Florence Copper project is advancing on schedule, with first copper production expected in Q4 2025.

  • Adjusted EBITDA for Q2 2024 was $70.8 million, significantly up from $22.2 million in Q2 2023, partly due to a $26 million insurance recovery.
  • The company reported a net loss of $11.0 million ($0.04 per share) for the quarter, compared to a net income of $9.991 million ($0.03 per share) in the prior year.
  • Copper production at the Gibraltar mine was 20.2 million pounds, a decrease from 28.2 million pounds in Q2 2023, primarily due to an 18-day labor strike and planned downtime.
  • Construction at the Florence Copper project is on schedule, with key activities advancing and first copper production anticipated in the fourth quarter of 2025.

Headline financials

Total Revenue

$138M

No prior period
EPS (adj)

$0.10

No prior period
Capital Expenditures

-$12.1M

No prior period
Net Income

-$11M

No prior period
Operating Income

$44.9M

No prior period
Gross Profit

$488M

No prior period

Revenue & EPS history

TKO · Revenue · Quarterly

$138M

Q2 2024
Beat estimate in 4 of 4 quarters(100%)
ActualEstimate

Forward guidance

Taseko expects stronger production in the second half of 2024 at Gibraltar following major project and maintenance work completion. The Florence Copper project remains on track for first copper production in Q4 2025, with a prudent hedging program in place to protect copper prices.

Tailwinds

  • Production at Gibraltar is expected to be stronger in the second half of 2024 after major project and maintenance work completion.
  • An updated mine plan and mill throughput opportunities are being evaluated to recover lost production from the strike.
  • The Florence Copper project is fully funded and remains on schedule for first copper production in Q4 2025.
  • Off-property costs are expected to reduce to US$0.05 per pound or less over the next two and a half years due to new fixed, lower TCRCs contracts.
  • Copper collar contracts secure a minimum copper price of US$3.75 per pound for 42 million pounds of copper for H2 2024, and US$4.00 per pound for 108 million pounds for 2025.

Headwinds

  • Copper production for the year is expected to be in the range of 110 to 115 million pounds, slightly below the original guidance of approximately 115 million pounds.
  • The company's operations are subject to risks including unexpected judicial or regulatory proceedings and changes in laws and policies.
  • Fluctuations in exchange rates, particularly with the U.S. dollar and Canadian dollar, could impact financial results.
  • The risk of inadequate insurance or inability to obtain insurance to cover mining risks remains.
  • Labour strikes, work stoppages, or other interruptions could impact mineral production.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.6%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.0%

Avg return

30 days after

45%

5 / 11 earnings

Positive

+8.0%

Q4 2025

Best reaction

-5.5%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%-3.7%+9.0%
Q4 2025+8.0%+6.1%-8.7%
Q3 2025-3.3%-4.0%+8.0%
Q2 2025+3.3%+19.5%+24.7%
Q1 2025-5.5%-4.0%-1.8%
Q4 2024+2.3%-5.3%-4.1%
Q3 2024-1.0%+1.7%-6.6%
Q2 2024+0.0%+2.6%+1.6%
Q1 2024+0.0%+7.1%+9.6%
Q4 2022+0.0%-3.6%+4.2%
Q3 2023+1.2%-6.3%-14.0%

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