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Investing.com -- Fitch Ratings has revised Taseko Mines Limited’s outlook to positive from stable while affirming its Long-Term Issuer Default Rating at ’B-’.
The rating agency also affirmed Taseko’s senior secured second lien notes at ’B-’ with a Recovery Rating of ’RR4’, and senior secured revolver at ’BB-’/’RR1’.
According to Fitch, the positive outlook reflects the view that the Florence Copper project is nearing production and should allow for debt reduction over the next 12-18 months.
The current rating takes into account Taseko’s limited scale, concentration in a single operation, and high-cost position. It also considers the stable production profile and long reserve life of the Gibraltar mine in British Columbia, Canada, as well as its favorable mining jurisdiction.
Taseko has substantially completed construction of the Florence Copper project in Arizona and started wellfield operations in the fourth quarter of 2025. The company expects first cathode production in early 2026. Fitch estimates this project will reduce Taseko’s overall costs by around 15% and increase production by approximately two-thirds once fully operational.
The rating agency expects EBITDA leverage to remain in the 3.5x-4.0x range through 2026. Leverage increased to 4.8x in 2024 due to Gibraltar mill outages and lower ore grades but should improve as copper prices remain supportive and operations normalize.
Fitch noted that Taseko is smaller and less diversified than peers like Capstone Copper Corp., Hudbay Minerals Inc., Ero Copper Corp., and First Quantum Minerals Ltd. It is also less profitable due to Gibraltar’s higher cost position and has higher leverage than most peers except First Quantum.
The agency’s key assumptions include Gibraltar’s copper production at about 100 million pounds in 2025, increasing to about 118 million pounds per year on average thereafter, and Florence copper production reaching 81 million pounds per year on average after ramping up.
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