Report Overview

• 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.

• S&P Global Ratings Report: Taseko Mines