This year has been quite challenging for copper miners with
declining demand for the metal and rising inventories.
Disappointing results have in turn led to sharp downward
estimates revisions, sending Taseko Mines to a Zacks Rank # 5
About the Company
Headquartered in Vancouver, Canada, Taseko Mines Limited (
) owns and operates mining properties in Canada. The company
currently produces copper and molybdenum.
Disappointing Results and Guidance
On May 2, 2013, Taseko reported it first quarter 2013 results.
The quarter resulted in an adjusted loss of $2.9 million, down
from net earnings of $3.1 million for the first quarter of 2013.
On a per-share basis, the loss was $0.01 per share, below
Due to disappointing results, quarterly and annual estimates
have been revised sharply downwards in the past few weeks by
Zacks consensus estimate for the current quarter now stands at
a negative $0.01 per share versus $0.04 per share, 60 days ago,
while the full-year consensus estimate is $0.11 per share now,
down from $0.21 per share.
The Bottom Line
While the company is trying to grow production and lower
costs, lower copper prices resulting from high inventories and
global slow-down continue to act as headwinds.
TGB is currently Zacks Rank # 5 (Strong Sell) stock and it has
a longer-term recommendation of "Underperform". Further the Zacks
Industry rank of 231 out of 265 also indicates weakness in the
near- to mid- term. Thus we think investors should avoid
this stock for the time being.
Investors looking for exposure to the mining industry could
look at Avalon Rare Metals (AVL) or Stillwater Mining (SWC)--both
Zacks rank#1 (Strong Buy) stocks with "Outperform'
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TASEKO MINES LT (TGB): Free Stock Analysis
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