Taseko Purchases Put Options On 2011 Copper Production (TGB)

Taseko Mines Limited TGB has purchased put options on its remaining 2011 copper production to protect its minimum 2011 revenue stream. Russell Hallbauer, President and CEO of Taseko, stated; "Copper prices have averaged approximately $4.25/lb over the last 4 months, but the price has experienced extreme volatility on a day over day, and week over week basis. We believe it is prudent financial management, while we are working on our numerous projects, that we guarantee a minimum revenue stream on our Gibraltar production by purchasing puts. The put structure mechanism is the best of both worlds, like insurance, it allows the Company to predict its minimum cash operating profit based off of our historical cost structure, protecting the downside risk should something unforeseen happen in world metal markets, while allowing us to sell production at higher prices if the opportunity presents itself. The various puts we have entered into have a cost of approximately 3.5% of the copper selling price which, in turn, insures that we will receive a minimum of $3.61/lb for all of our remaining 2011 copper production."