S&P Global Ratings Update on Taseko MinesMarch 22, 2018
Research Update: Taseko Mines Ltd. Upgraded To ‘B’ From ‘B-’ On Revised Copper Price Assumptions; Outlook Stable
- We expect Canada-based copper producer Taseko Mines Limited to generate credit measures stronger than our previous expectations over the next two years, led primarily by the increase in our copper price assumptions.
- Based on the corresponding improvement in our earnings and cash flows estimates, we expect Taseko’s adjusted debt-to-EBITDA to remain below 4x in 2018 and 2019, in line with our previous upgrade trigger.
- In our view, the lack of near-term debt maturities and ample cash position provides Taseko with greater flexibility to manage future periods of copper price volatility.
- As a result, we are raising our ratings on Taseko, including our long-term corporate credit rating to ‘B’ from ‘B-‘.
- The stable outlook on Taseko primarily reflects our expectation that the company will generate and sustain adjusted debt-to-EBITDA below 4x over the next two years, led by the gradual increase in our copper price assumption that should facilitate modest improvement in the company’s liquidity position.