11:22 AM EDT, 06/03/2024 (MT Newswires) -- Taseko Mines ( TGB ) shares were last seen down 2.9% after the company on Saturday locked out employees and suspended operations at its Gibraltar mine in British Columbia as collective bargaining talks with the mine's union representatives failed to reach an agreement..

Gibraltar's unionized workforce sent notice that they intended to strike as of midnight May 31, when their contract with the miner expired. Taseko elected to shut down mining and milling operations prior to that deadline and the mine is now on care and maintenance, with only essential staff operating and maintaining critical systems.

The company said it remains committed to the bargaining process and reaching an equitable agreement.

Meanwhile, National Bank of Canada gave Taseko a Sector Perform rating and a $4.00 price target after its announcement of the mine suspension, which the bank said has a negative impact.

Every week of lost production will have an impact of -$7.0 million, or about 20% of second-quarter EBITDA of $35.1 million. A prolonged shutdown or strike action could materially impact free cash flow allocated to Florence development, but this is viewed by the bank as unlikely.

The Sector Perform rating accounts for growth opportunities with Florence, offset by elevated debt levels and capital expenditure escalation risk. The company's outlook also improves with a more positive copper price backdrop.

Taseko at last look fell $0.11 to $3.64 per share on the Toronto Stock Exchange.

Price: 3.64, Change: -0.09, Percent Change: -2.41