Company Updates

    S&P Global Ratings Update on Taseko Mines

    March 22, 2018

    Research Update: Taseko Mines Ltd. Upgraded To ‘B’ From ‘B-’ On Revised Copper Price Assumptions; Outlook Stable

    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.

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