As previously released, Gibraltar produced 30 million pounds of copper and 717 thousand pounds of molybdenum in the first quarter, at Total operating cost (C1)* of US$2.63 per pound of copper produced. The strong production levels from the second half of 2025 continued in the first quarter and copper grades of 0.25% were in line with the life of mine average. Mill throughput was 7.0 million tons in the first quarter, slightly lower than the previous quarter. Throughput was adjusted to optimize copper recoveries, which increased to 83% in the quarter, and was also impacted by unscheduled maintenance. Tons mined in the first quarter were in line with plan.
At Florence Copper, the injection of solutions in the wellfield commenced in late 2025 in parallel with the SX/EW plant commissioning. Initial flowrates were above expectations resulting in faster acidification of the wellfield, and solution grades reached targeted levels in January. The SX/EW plant commenced operation in February, and first copper cathodes were harvested at the end of February. A total of 1.5 million pounds of copper cathode was produced in the first quarter. Five drill rigs are now operating on site and increased production from newly acidified wells is expected later in the second quarter. Additional production growth will come as new groups of wells are constructed, tested, and integrated into the wellfield operation over the remainder of the year. Expected copper cathode production in 2026 continues to be in the range of 30 to 35 million pounds.
Stuart McDonald, President & CEO of Taseko, commented, "Both of Taseko's producing assets performed well in the first quarter. Gibraltar operations have achieved a consistent production level in recent quarters as mining activities have been advancing on plan in the Connector pit."
"At Florence Copper, we are very pleased with the first six months of wellfield operations and first two months of plant operations. After the initial cathode harvest at the end of February, our operating team has done an excellent job stabilizing solution flow and grade from the wellfield through to the SX/EW plant circuits. Copper production from the initial wells has achieved a steady rate, in line with our expectations, and the focus is now on expanding the wellfield to ramp-up production over the remainder of the year."
"Environmental assessment work on our Yellowhead copper project continued to advance in the quarter. After the first round of community open houses that we held last fall, our next significant milestone is filing the detailed project description, which will incorporate feedback received from the general public, Indigenous communities, and regulatory agencies. We are working on this now with the goal to file it this coming summer."
"Taseko is uniquely positioned as a North American copper growth story. Florence Copper is adding low-cost production and cash flow growth this year, to Gibraltar's existing production base. The Company is well positioned to capitalize on the strong copper markets we see today, and continue to unlock value from our pipeline of large-scale longer term projects."
*Non-GAAP performance measure. See end of news release.
First Quarter Review
Earnings from mining operations before depletion and amortization* was $114.6 million, Adjusted EBITDA* was $93.5 million and cash flow from operations was $93.9 million;
Net income was $16.8 million ($0.05 earnings per share) and Adjusted net income* was $27.5 million ($0.08 adjusted earnings per share);
Gibraltar produced 30.0 million pounds of copper, including 0.7 million pounds of copper cathode, at a total operating cost (C1)* of US$2.63 per pound of copper produced. Copper head grades averaged 0.25% and recoveries averaged 83%;
Gibraltar sold 27.0 million pounds of copper, including 0.9 million pounds of copper cathode, at an average realized copper price of US$5.74 per pound contributing to revenues of $237.1 million for Taseko. The Company had copper collar contracts maturing in the first quarter for 27 million pounds with a ceiling price of US$5.40 per pound, resulting in a realized derivative loss of $17.4 million;
Site costs increased in the quarter compared to 2025 as a result of higher diesel and explosive costs which could remain elevated in the coming quarters due to market factors;
Florence Copper's SX/EW plant started up in mid-February and first copper cathodes were harvested at the end of February. A total of 1.5 million pounds of copper cathode was produced in the last five weeks of the quarter. Ongoing drilling and expansion of the wellfield will continue in 2026 to support the ramp up of copper production at Florence; and
At March 31, 2026, the Company had a cash balance of $169 million and total available liquidity of $322 million including its undrawn corporate revolving credit facility.
Three months endedMarch 31,
Gibraltar operating data
2026
2025
Change
Tons mined (millions)
24.2
23.2
1.0
Tons milled (millions)
7.0
7.9
(0.9
)
Production (million pounds Cu)
30.0
20.0
10.0
Sales (million pounds Cu)
27.0
21.8
5.2
Financial data
Three months endedMarch 31,
(Cdn$ in thousands, except per share amounts)
2026
2025
Change
Revenues
237,093
139,149
97,944
Cash flows from operations
93,857
55,892
37,965
Net income (loss)
16,844
(28,560
)
45,404
Per share - Basic ("EPS")
0.05
(0.09
)
0.14
Earnings from mining operations before depletion, amortization and non-recurring items*
114,561
38,791
75,770
Adjusted EBITDA*
93,463
34,391
59,072
Adjusted net income (loss)*
27,535
(6,943
)
34,478
Per share - Basic ("Adjusted EPS")*
0.08
(0.02
)
0.10
*Non-GAAP performance measure. See end of news release.
Review of Operations
Gibraltar
Operating data
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Tons mined (millions)
24.2
28.0
29.3
30.4
23.2
Tons milled (millions)
7.0
7.2
7.8
7.7
7.9
Strip ratio
2.6
2.2
1.5
2.3
4.6
Site operating cost per ton milled*
$
18.15
$
16.61
$
14.98
$
11.23
$
8.73
Copper concentrate
Head grade (%)
0.25
0.26
0.22
0.20
0.19
Recovery (%)
82.6
80.9
77.2
63.2
67.5
Production (million pounds Cu)
29.2
29.8
26.7
19.4
20.0
Sales (million pounds Cu)
26.0
30.8
25.4
19.0
21.8
Inventory (million pounds Cu)
5.9
2.9
4.0
2.7
2.3
Copper cathode
Production (thousand pounds Cu)
733
919
895
395
-
Sales (thousand pounds Cu)
938
783
905
-
-
Molybdenum concentrate
Production (thousand pounds Mo)
717
830
558
180
336
Sales (thousand pounds Mo)
708
953
421
178
364
Per unit data (US$ per Cu pound produced)1
Site operating cost*
$
3.09
$
2.80
$
3.09
$
3.15
$
2.41
By-product credit*
(0.62
)
(0.59
)
(0.39
)
(0.19
)
(0.33
)
Site operating cost, net of by-product credit*
2.47
2.21
2.70
2.96
2.08
Off-property cost*
0.16
0.26
0.17
0.18
0.18
Total operating cost (C1)*
$
2.63
$
2.47
$
2.87
$
3.14
$
2.26
1 Copper pounds produced includes copper in concentrate and copper cathode.
Operations Analysis
First Quarter Results of Gibraltar
Gibraltar copper production totaled 30.0 million pounds in the quarter, including 0.7 million pounds of copper cathode, which was comparable to the previous quarter and a 50% increase from the comparative prior year quarter. Gibraltar's cathode production benefited from the SX/EW plant operating continuously through the winter months.
Copper head grades averaged 0.25% and were in line with life of mine average grades. Copper recoveries averaged 83% and benefitted from improved ore characteristics. Copper sales in the first quarter were 27.0 million pounds, and lower than production due to shipment timing.
Mill throughput was 7.0 million tons in the first quarter, impacted by lower mill availability due to maintenance activities and ore hardness.
*Non-GAAP performance measure. See end of news release.
Operations Analysis - continued
A total of 24.2 million tons were mined in the first quarter, comparable to the comparative prior year quarter. The average strip ratio was 2.6 in the quarter, reflecting continued advancement of waste stripping for the next phases of the Connector pit.
Total Gibraltar site costs* were $142.2 million (including capitalized stripping of $15.2 million) in the first quarter reflecting higher costs for key inputs and unscheduled maintenance activities. Diesel costs increased $5.3 million compared to the comparative prior year quarter, driven by both higher usage and increased diesel prices in March as a result of rising oil prices due to the ongoing conflict in the Middle East. Explosives costs also increased $6.1 million compared to the comparative prior year quarter, driven by higher usage and higher costs caused by a disruption in the supply chain. Site costs were also higher due to unscheduled maintenance activities, primarily on the loader and dozer fleets.
Molybdenum production was 717 thousand pounds in the first quarter and reflects the higher molybdenum grades realized in Connector pit ore. At an average molybdenum price of US$25.73 per pound for the quarter, molybdenum provided a by-product credit of US$0.62 per pound of copper produced.
Off-property costs were US$0.16 per pound of copper produced and reflect the lower treatment and refining charges ("TCRC") realized on Gibraltar's favorable offtake contracts.
Total operating costs (C1)* were US$2.63 per pound of copper produced for the first quarter, compared to US$2.47 per pound of copper produced for the prior quarter, driven by higher repairs and maintenance costs and higher costs for key inputs, particularly diesel and explosives, partially offset by higher capitalized stripping costs and lower offsite costs.
Gibraltar Outlook
Mining activity is focused in the Connector pit, which will be the primary source of ore for the next three years (2026 through 2028). Total copper production at Gibraltar for 2026 is expected to be in the range of 110 to 115 million pounds and is expected to continue at similar levels (± 5%) until completion of mining in the Connector pit. This includes the expected impact of supergene ore on mill recoveries as well as a more conservative forecast for head grade based on mining experience to-date in the Connector pit.
*Non-GAAP performance measure. See end of news release.
Gibraltar Outlook - continued
Oxide ore mined from Connector Pit has been stacked on leach pads and will be processed in the Gibraltar SX/EW plant in the coming years. The second oxide leach pad is now being integrated into the operation, which is expected to increase flow rates to the SX/EW plant, and support higher copper cathode production going forward.
Site diesel prices are currently $0.50 per litre higher than February levels. At these higher prices, Gibraltar's operating costs will increase by approximately US$0.15 per pound in future quarters if these market conditions prevail.
Molybdenum production in 2026 is expected to remain at similar levels to 2025, and with molybdenum prices above US$25.00 per pound, we continue to expect strong molybdenum by-product credits.
The Company has offtake agreements covering substantially all of Gibraltar's copper concentrate production for 2026, which contain low and in certain cases negative TCRC rates reflecting the continued tight copper smelting market. Based on the contract terms, the Company expects TCRCs to be nominal in 2026, similar to 2025. Spot TCRC rates continue to be attractive and the Company could tender additional 2027 tons in the coming months to take advantage of the favorable market.
The Company has a prudent hedging program in place to protect a minimum copper price and Gibraltar cash flow during the ramp-up of commercial operations at Florence Copper. Currently, the Company has copper collar contracts in place with a floor of US$4.00 per pound and a ceiling of US$5.40 per pound for 27 million pounds of copper production for the second quarter of 2026, and a floor of US$4.75 per pound and a ceiling of between US$7.50 and US$8.50 per pound for 24 million pounds of copper production for the third quarter of 2026 (refer to "Financial Condition Review—Hedging Strategy" for details). The Company has not hedged any of its Florence Copper production.
Florence Copper
Florence Copper is an in-situ copper recovery operation, located in Arizona, USA, that produces LME Grade A copper metal without conventional open-pit mining methods or major surface disturbance. Florence Copper is projected to rank among the lowest greenhouse gas ("GHG") intensity primary copper producers in North America, delivering environmentally responsible copper to North American manufacturers and consumers. The commercial operations at Florence Copper have an annual production capacity of 85 million pounds of copper and with current reserves has a current mine life of 22 years. Florence Copper is expected to be in the lowest quartile of primary producers on the global copper cost curve based on its long-term operating parameters once at full production capacity.
Construction activities at Florence Copper were substantially complete in the fourth quarter of 2025.
The focus of the operating team in the first quarter transitioned to wellfield operations, commissioning of the SX/EW plant and the start of production. Commercial wellfield acidification commenced in November with initial injection flowrates slightly above expectations. Commissioning of the SX/EW plant area advanced in parallel with initial wellfield operations, and plant operations commenced mid-February. Plating of copper cathode commenced with the startup of the electrowinning circuit and first cathodes were harvested at the end of February.
Florence Copper - continued
Wellfield drilling re-commenced in late 2025 and there are currently five drill rigs operating on site. Continued expansion of the commercial wellfield will be required to support higher solution flows and increased copper production as the Florence Copper commercial operation progresses through its ramp up in 2026.
Total production in 2026 at Florence Copper is expected to be in the range of 30 to 35 million pounds of copper. In the first quarter, with the SX/EW plant operating, Florence Copper produced a total of 1.5 million pounds of LME Grade A copper cathode with corresponding sales of 619 thousand pounds.
Florence Copper has a fixed price contract in place for all sulphuric acid requirements for 2026, so there is no expected near-term impact from reported disruptions in global acid supply chains due to geopolitical events in the Middle East.
Florence Copper site costs(US$ in thousands)
Three months endedMarch 31, 2026
Commissioning and start-up costs
15,175
Wellfield development capital expenditures
13,075
Site operating costs
7,414
Total site costs
35,664
Long-term Growth Strategy
Taseko's strategy has been to grow the Company by acquiring and developing a pipeline of projects focused on copper in North America. We continue to believe this will generate long-term returns for shareholders. Our other development projects are located in BC, Canada.
Yellowhead copper project
In July 2025, the Company published a new report titled "Technical Report Update on the Yellowhead Copper Project, British Columbia, Canada" (the "Yellowhead 2025 Technical Report"). Based on the Yellowhead 2025 Technical Report, the Yellowhead copper project is expected to produce 4.4 billion pounds of copper over a 25-year mine life at an average C1 cost, net of by-product credit, of US$1.90 per pound of copper produced. During the first 5 years of operation, the Yellowhead project is expected to produce an average of 206 million pounds of copper per year at an average C1 cost, net of by-product credit, of US$1.62 per pound of copper produced. The Yellowhead project also contains valuable precious metal by-products with 282,000 ounces of gold production and 19.4 million ounces of silver production over the life of mine.
The economic analysis in the Yellowhead 2025 Technical Report was prepared using a copper price of US$4.25 per pound, a gold price of US$2,400 per ounce, and a silver price of US$28.00 per ounce.
Project highlights based on the Yellowhead 2025 Technical Report are detailed below:
Average annual copper production of 178 million pounds over a 25 year mine life at total cash costs (C1) of US$1.90 per pound of copper produced;
Over the first 5 years of the mine life, copper grade is expected to average 0.32% producing an average of 206 million pounds of copper at total cash costs (C1) of US$1.62 per pound of copper produced;
Long-term Growth Strategy - continued
Concentrator designed to process 90,000 tonnes per day of ore with an expected copper recovery of 90%, and produce a clean copper concentrate with payable gold and silver by-products;
Conventional open pit mining with a low strip ratio of 1.4;
After-tax net present value of $2.0 billion (8% after-tax discount rate) and after-tax internal rate of return of 21%;
Initial capital costs of $2.0 billion with a payback period of 3.3 years; and
Expected to be eligible for the Canadian federal Clean Technology Manufacturing Investment Tax Credit, with 30% (approximately $540 million) of eligible initial capital costs reimbursed in year 1 of operation.
In June 2025, the Yellowhead project's Initial Project Description was filed and accepted by the British Columbia Environmental Assessment Office and Impact Assessment Agency of Canada, formally commencing the Environmental Assessment process.
The Company continued to advance the environmental assessment work on the Yellowhead project in the ...
