REG-Taseko Mines Limited: 3rd Quarter Results
04/11/2021 07:05
Taseko Reports Significantly Improved Adjusted EBITDA* of $76 Million for the
Third Quarter 2021
This release should be read with the Company's Financial Statements and Management Discussion & Analysis ("MD&A"), available at www.tasekomines.com and filed on www.sedar.com . Except where otherwise noted, all currency amounts are stated in Canadian dollars. Taseko's 75% owned Gibraltar Mine is located north of the City of Williams Lake in south-central British Columbia. Production volumes stated in this release are on a 100% basis unless otherwise indicated.
VANCOUVER, BC, Nov. 3, 2021 -- Taseko Mines Limited (TSX: TKO) (NYSE
American: TGB) (LSE: TKO) ("Taseko" or the "Company") reports revenues of
$132.6 million, Earnings from mining operations before depletion and
amortization* of $83.7 million, Adjusted EBITDA* of $76.3 million and Adjusted
net income* of $27.0 million, or $0.10 per share, in the third quarter of
2021.
Stuart McDonald, President and CEO of Taseko, stated, "Gibraltar produced 34.5
million pounds of copper in the third quarter, a 29% increase over the prior
quarter, as copper grades improved in line with our expectations and the mine
plan. Higher metal production led to lower unit costs as Total operating costs
(C1)* fell to US$1.57 per pound produced, 22% lower than the previous quarter.
Copper markets remained robust through the period, resulting in Adjusted
EBITDA* of $76 million, which is 60% higher than the previous quarter and 140%
higher than the comparative period last year."
"During the third quarter, the Gibraltar pit started producing ore to
supplement existing production from the Pollyanna pit. The combined ore feed
is being efficiently processed and the transition to the Gibraltar pit will
continue over the next few quarters. We expect a strong fourth quarter and
copper production for the year should be in line with the previous guidance of
approximately 120 million pounds.
At Florence, we continue to advance detailed engineering and have made initial
deposits on long-lead equipment orders, which we believe will mitigate the
impact of heightening global supply chain issues on the construction schedule.
Recent feedback from the US Environmental Protection Agency ("EPA") on the
draft Underground Injection Control ("UIC") permit is that no new issues have
arisen, but final drafting and review of the permit is taking longer than
anticipated. We expect to receive the draft permit from the EPA shortly and
once received, will complete our review within the allotted timeframe and look
forward to the public comment period commencing," continued Mr. McDonald.
"Our balance sheet remains strong and our cash position increased
quarter-over-quarter to $239 million, despite the $15 million of capital
spending at Florence and a $18 million semi-annual interest payment on our
bonds during the period. We now have approximately $300 million in available
liquidity and are well positioned to move into our next phase of growth with
construction of the Florence Copper commercial production facility," concluded
Mr. McDonald.
Third Quarter Review
* Third quarter earnings from mining operations before depletion and
amortization* was $83.7 million, Adjusted EBITDA* was $76.3 million and cash
flows from operations was $68.3 million;
* Adjusted net income* was $27.0 million ($0.10 per share), a 171% increase
from the second quarter;
* Site operating costs, net of by-product credits* were US$1.28 per pound
produced, and total operating costs (C1)* were US$1.57 per pound produced;
* The Gibraltar mine produced 34.5 million pounds of copper and 571 thousand
pounds of molybdenum in the third quarter, increases of 29% and 42% over the
second quarter, respectively. Copper recoveries were 84.2% and copper head
grades were 0.28%, in line with management expectations;
* Gibraltar sold 32.4 million pounds of copper in the quarter (100% basis)
which contributed to $132.6 million of revenue for Taseko, an increase of 19%
over the second quarter. Average realized copper prices were US$4.26 per
pound in the quarter, consistent with the LME average price;
* The Company has approximately $300 million of available liquidity, including
a cash balance of $239 million at September 30, 2021 and a US$50 million
revolving credit facility (the "Facility"). The Facility, which closed in
early October, was arranged and fully underwritten by National Bank of Canada,
will be available for working capital and general corporate purposes, and
provides additional financial flexibility as the Company prepares for the
construction at Florence Copper;
* Development costs incurred for Florence Copper were $19.1 million in the
third quarter and included detailed engineering and design of the commercial
facility, and initial deposits for major processing equipment associated with
the solvent extraction and electrowinning ("SX/EW") plant. These activities
will allow the project team to efficiently advance into construction upon
receipt of the Underground Injection Control ("UIC") permit;
* The EPA continues to make progress towards finalizing the UIC permit with no
significant issues raised to-date, and the Company is expecting to receive the
draft permit from the EPA shortly for its review. Once publicly issued by
the EPA, there will be a public comment period;
* The Company has secured minimum copper price protection for the coming
quarters including copper collars for the first half of 2022 which secure a
minimum copper price of US$4.00 per pound and a ceiling price of US$5.60 per
pound for 43 million pounds of copper; and
* In September 2021, the Company completed the sale of the Harmony Gold
Project ("Harmony") to JDS Gold Inc. ("JDS Gold"), a newly incorporated
company controlled by JDS Energy & Mining Inc. and affiliates. Under the terms
of the agreement, JDS Gold became the owner and operator of Harmony, a
high-grade development-stage gold project located on Graham Island in Haida
Gwaii. The Company retained a 2% net smelter return royalty in Harmony and a
15% carried interest in JDS Gold.
*Non-GAAP performance measure. See end of news release
HIGHLIGHTS
Operating Data (Gibraltar - 100% basis) Three months ended Nine months ended
September 30, September 30,
2021 2020 Change 2021 2020 Change
Tons mined (millions) 25.2 23.3 1.9 82.1 72.3 9.8
Tons milled (millions) 7.4 7.5 (0.1) 21.9 22.6 (0.7)
Production (million pounds Cu) 34.5 28.9 5.6 83.5 98.1 (14.6)
Sales (million pounds Cu) 32.4 28.6 3.8 81.1 99.0 (17.9)
Financial Data Three months ended Nine months ended
September 30, September 30,
(Cdn$ in thousands, except for per share amounts) 2021 2020 Change 2021 2020 Change
Revenues 132,563 87,780 44,783 330,306 255,869 74,437
Earnings from mining operations before depletion and amortization (*) 83,681 35,705 47,976 168,476 91,964 76,512
Cash flows provided by operations 68,319 31,021 37,298 137,538 85,771 51,767
Adjusted EBITDA (*) 76,291 31,545 44,746 147,745 87,751 59,994
Adjusted net income (loss) (*) 27,020 (5,754) 32,774 31,433 (19,066) 50,499
Per share - basic ("adjusted EPS") (*) 0.10 (0.02) 0.12 0.11 (0.08) 0.19
Net income (loss) (GAAP) 22,485 987 21,498 24,710 (29,218) 53,928
Per share - basic ("EPS") 0.08 - 0.08 0.09 (0.12) 0.21
*Non-GAAP performance measure. See end of news release
REVIEW OF OPERATIONS
Gibraltar mine (75% Owned)
Operating data (100% basis) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
Tons mined (millions) 25.2 24.9 32.0 26.4 23.3
Tons milled (millions) 7.4 7.2 7.2 7.5 7.5
Strip ratio 1.3 2.3 6.0 1.9 1.5
Site operating cost per ton milled (Cdn$)* $8.99 $9.16 $8.73 $11.67 $9.57
Copper concentrate
Head grade (%) 0.28 0.22 0.19 0.20 0.23
Copper recovery (%) 84.2 83.3 81.5 83.3 85.0
Production (million pounds Cu) 34.5 26.8 22.2 25.0 28.9
Sales (million pounds Cu) 32.4 26.7 22.0 25.0 28.6
Inventory (million pounds Cu) 4.9 3.5 3.6 3.4 3.6
Molybdenum concentrate
Production (thousand pounds Mo) 571 402 530 549 668
Sales (thousand pounds Mo) 502 455 552 487 693
Per unit data (US$ per pound produced) (*)
Site operating costs (*) $1.53 $2.02 $2.23 $2.67 $1.85
By-product credits (*) (0.25) (0.25) (0.27) (0.14) (0.14)
Site operating costs, net of by-product credits (*) $1.28 $1.77 $1.96 $2.53 $1.71
Off-property costs 0.29 0.25 0.27 0.29 0.29
Total operating costs (C1) (*) $1.57 $2.02 $2.23 $2.82 $2.00
Third Quarter Review
Copper production in the third quarter was 34.5 million pounds and improved
29% over the second quarter as higher ore grades were mined and processed from
the Pollyanna pit. Copper recoveries also improved with the increasing ore
grade.
A total of 25.2 million tons were mined in the third quarter in line with the
mine plan and the second quarter. The strip ratio decreased as a result of
mining in Pollyanna opening higher grade areas with lower stripping rates.
There was also an increase of 3.7 million tons added to ore stockpiles.
While Pollyanna ore remains the primary mill feed, waste stripping activities
also increased in the Gibraltar East pit during the quarter.
Total site spending (including capitalized stripping of $10.9 million on a 75%
basis) was 4% lower than the prior quarter due mainly to the timing of routine
maintenance. Sustaining capital expenditures at Gibraltar of $8.3 million on
a 75% basis in the third quarter was comparable to the second quarter.
*Non-GAAP performance measure. See end of news release
REVIEW OF OPERATIONS - CONTINUED
Molybdenum production was 571 thousand pounds in the third quarter and
increased due to higher grades of molybdenum in the ore. Molybdenum prices
also strengthened in the third quarter and reached a high of US$20.10 per
pound in late August. The average molybdenum price of US$19.05 per pound was
a US$4.73 per pound increase over the second quarter. By-product credits per
pound of copper produced remained at US$0.25 in the third quarter despite the
increased copper production.
Off-property costs per pound produced* were US$0.29 for the third quarter and
higher than the second quarter due to increased trucking of concentrate in
July and August in response to wildfires in the BC interior which impacted
railcar movements. The Company also realized lower treatment and refining
charges ("TCRC") in the second quarter as a spot tender was delivered at one
of the lowest TCRC levels ever seen by the Gibraltar mine.
Total operating costs per pound produced (C1)* were US$1.57 for the quarter,
22% lower than the previous quarter. The decrease in C1* costs was primarily
due to the significantly increased copper production in the third quarter
compared to the second quarter.
GIBRALTAR OUTLOOK
Total copper production in the last quarter of 2021 is expected to be similar
to the third quarter, as higher-grade areas in the Pollyanna pit are available
for processing. The Company continues to expect approximately 120 million
pounds of copper production for the 2021 year.
Copper prices in the third quarter averaged US$4.25 per pound and are
currently around US$4.30 per pound and recently tested record levels again
due to depleted warehouse inventories and a unique supply squeeze attributed
to smelter closures resulting from an Asian and European energy crisis as well
as continued supply chain challenges caused by the economic restart. High
copper prices, and downside protection from copper hedges in place, are
supportive of strong financial performance at the Gibraltar mine over the
coming quarters.
The copper price outlook into 2022 remains quite favorable with many
governments now focusing on increased infrastructure investment to stimulate
economic recovery after the pandemic, including green initiatives, which will
require new primary supplies of copper. Although some analysts predict a
balanced market by 2023 based on known projects currently under development,
most industry analysts are projecting ongoing supply constraints and deficits,
which should support higher copper prices in the years to come.
The Company has a long track record of purchasing copper price options to
manage copper price volatility. This strategy provides security over the
Company's cash flow as it prepares for construction of Florence Copper while
providing significant upside should copper prices continue at these levels or
increase further. In particular, the Company has copper collars to secure a
minimum copper price of US$4.00 per pound for the first half of 2022 for 43
million pounds of copper.
*Non-GAAP performance measure. See end of news release
FLORENCE COPPER
The commercial production facility at Florence Copper will be one of the
greenest sources of copper for US domestic consumption, with carbon emissions,
water and energy consumption all dramatically lower than a conventional mine.
It is a low-cost copper project with an annual production capacity of 85
million pounds of copper over a 21-year mine life. With the expected C1*
operating cost of US$1.10 per pound, Florence Copper will be in the lowest
quartile of the global copper cost curve.
The Company has successfully operated a Production Test Facility ("PTF") since
2018 at Florence to demonstrate that the in-situ copper recovery ("ISCR")
process can produce high quality cathode while operating within permit
conditions.
The next phase of Florence Copper will be the construction and operation of
the commercial ISCR facility with an estimated capital cost of US$230 million
(including reclamation bonding and working capital). At a conservative copper
price of US$3.00 per pound, Florence Copper is expected to generate an
after-tax internal rate of return of 37%, an after-tax net present value of
US$680 million at a 7.5% discount rate, and an after-tax payback period of 2.5
years.
In December 2020, the Company received the Aquifer Protection Permit ("APP")
from the Arizona Department of Environmental Quality ("ADEQ"). During the
APP process, Florence Copper received strong support from local community
members, business owners and elected officials. The other required permit is
the UIC permit from the U.S. Environmental Protection Agency ("EPA"), which is
the final permitting step required prior to construction of the commercial
ISCR facility. The EPA continues to make progress towards finalizing the
permit with no significant issues raised to-date, and the Company is expecting
to receive the draft UIC permit from the EPA shortly. Once the permit is
publicly issued, a public comment period will commence.
Detailed engineering and design for the commercial production facility is now
approximately 85% complete. The Company has made initial deposits and
awarded the key contract for the major processing equipment associated with
the SX/EW plant in the third quarter. The Company has made purchase
commitments of US$25 million as at September 30, 2021 to assist with
protecting the project execution plan and mitigating the impact of supply
chain disruptions. Deploying strategic capital and awarding key contracts
will ensure a smooth and efficient transition into construction once the final
UIC permit is received.
At current copper prices, the Company expects to be able to fund construction
of the commercial facility from its existing sources of liquidity and
cashflows from Gibraltar.
LONG-TERM GROWTH STRATEGY
Taseko's strategy has been to grow the Company by acquiring and developing a
pipeline of complementary projects focused on copper in stable mining
jurisdictions. We continue to believe this will generate long-term returns
for shareholders. Our other development projects are located in British
Columbia.
*Non-GAAP performance measure. See end of news release
LONG-TERM GROWTH STRATEGY - CONTINUED
Yellowhead Copper Project
Yellowhead Mining Inc. ("Yellowhead") has an 817 million tonnes reserve and a
25-year mine life with a pre-tax net present value of $1.3 billion at an 8%
discount rate using a US$3.10 per pound copper price. Capital costs of the
project are estimated at $1.3 billion over a 2-year construction period.
Over the first 5 years of operation, the copper equivalent grade will average
0.35% producing an average of 200 million pounds of copper per year at an
average C1* cost, net of by-product credit, of US$1.67 per pound of copper.
The Yellowhead copper project contains valuable precious metal by-products
with 440,000 ounces of gold and 19 million ounces of silver with a life of
mine value of over $1 billion at current prices.
The Company is focusing its current efforts on advancing into the
environmental assessment process and is undertaking some additional
engineering work in conjunction with ongoing engagement with local communities
including First Nations. The Company is also collecting baseline data and
modeling which will be used to support the environmental assessment and
permitting of the project.
New Prosperity Gold-Copper Project
In late 2019, the T?ilhqot'in Nation, as represented by T?ilhqot'in National
Government, and Taseko entered into a confidential dialogue, facilitated by
the Province of British Columbia, to try to obtain a long-term solution to the
conflict regarding Taseko's proposed gold-copper mine currently known as New
Prosperity, acknowledging Taseko's commercial interests and the T?ilhqot'in
Nation's opposition to the project. The dialogue was supported by the
parties' agreement on December 7, 2019 to a one-year standstill on certain
outstanding litigation and regulatory matters that relate to Taseko's tenures
and the area in the vicinity of Te?tan Biny (Fish Lake).
The COVID-19 pandemic delayed the commencement of the dialogue, but the
T?ilhqot'in Nation, the Province of British Columbia and Taseko have made
progress in establishing a constructive dialogue. In December 2020, the
parties agreed to extend the standstill for a further year to continue this
dialogue.
Aley Niobium Project
Environmental monitoring and product marketing initiatives on the Aley niobium
project continue. The pilot plant program has successfully completed the
niobium flotation process portion of the test, raising confidence in the
design and providing feed to the converter portion of the process. Completion
of the converter pilot test will provide additional process data to support
the design of the commercial process facilities and provide final product
samples for marketing purposes.
The Company will host a telephone conference call and live webcast on Thursday, November 4, 2021 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific time) to discuss these results. After opening remarks by management, there will be a question and answer session open to analysts and investors. The conference call may be accessed by dialing 416-764-8688 in Canada, 888-390-0546 in the United States, 08006522435 in the United Kingdom, or online at tasekomines.com/investors/events. The conference call will be
archived for later playback until November 18, 2021 and can be accessed by dialing 416-764-8677 Canada, 888-390-0561 in the United States, or online at tasekomines.com/investors/events and using the passcode 709396 #.
Stuart McDonald
President & CEO
No regulatory authority has approved or disapproved of the information in this
news release.
NON-GAAP PERFORMANCE MEASURES
This document includes certain non-GAAP performance measures that do not have
a standardized meaning prescribed by IFRS. These measures may differ from
those used by, and may not be comparable to such measures as reported by,
other issuers. The Company believes that these measures are commonly used by
certain investors, in conjunction with conventional IFRS measures, to enhance
their understanding of the Company's performance. These measures have been
derived from the Company's financial statements and applied on a consistent
basis. The following tables below provide a reconciliation of these non-GAAP
measures to the most directly comparable IFRS measure.
Total operating costs and site operating costs, net of by-product credits
Total costs of sales include all costs absorbed into inventory, as well as
transportation costs and insurance recoverable. Site operating costs are
calculated by removing net changes in inventory, depletion and amortization,
insurance recoverable, and transportation costs from cost of sales. Site
operating costs, net of by-product credits is calculated by subtracting
by-product credits from the site operating costs. Site operating costs, net of
by-product credits per pound are calculated by dividing the aggregate of the
applicable costs by copper pounds produced. Total operating costs per pound is
the sum of site operating costs, net of by-product credits and off-property
costs divided by the copper pounds produced. By-product credits are calculated
based on actual sales of molybdenum (net of treatment costs) and silver during
the period divided by the total pounds of copper produced during the period.
These measures are calculated on a consistent basis for the periods presented.
(Cdn$ in thousands, unless otherwise indicated) – 75% basis Three months ended Nine months ended September 30,
September 30,
2021 2020 2021 2020
Cost of sales 65,893 75,969 212,215 240,459
Less:
Depletion and amortization (17,011) (23,894) (50,385) (76,554)
Net change in inventories of finished goods 762 1,415 (1,702) (3,026)
Net change in inventories of ore stockpiles 6,291 4,186 324 4,729
Transportation costs (5,801) (4,127) (13,409) (14,480)
Site operating costs 50,134 53,549 147,043 151,128
Less by-product credits:
Molybdenum, net of treatment costs (8,574) (4,109) (20,315) (11,592)
Silver, excluding amortization of deferred revenue 300 (54) 127 (436)
Site operating costs, net of by-product credits 41,860 49,386 126,855 139,100
Total copper produced (thousand pounds) 25,891 21,658 62,657 73,552
Total costs per pound produced 1.62 2.28 2.02 1.89
Average exchange rate for the period (CAD/USD) 1.26 1.33 1.25 1.35
Site operating costs, net of by-product credits (US$ per pound) 1.28 1.71 1.62 1.40
Site operating costs, net of by-product credits 41,860 49,386 126,855 139,100
Add off-property costs:
Treatment and refining costs 3,643 4,254 7,936 18,070
Transportation costs 5,801 4,127 13,409 14,480
Total operating costs 51,304 57,767 148,200 171,650
Total operating costs (C1) (US$ per pound) 1.57 2.00 1.90 1.72
NON-GAAP PERFORMANCE MEASURES – CONTINUED
Adjusted net income (loss)
Adjusted net income (loss) removes the effect of the following transactions
from net income as reported under IFRS:
* Unrealized foreign currency gains/losses;
* Unrealized gain/loss on derivatives; and
* Loss on settlement of long-term debt and call premium, including realized
foreign exchange gains.
Management believes these transactions do not reflect the underlying operating
performance of our core mining business and are not necessarily indicative of
future operating results. Furthermore, unrealized gains/losses on derivative
instruments, changes in the fair value of financial instruments, and
unrealized foreign currency gains/losses are not necessarily reflective of the
underlying operating results for the reporting periods presented.
Three months ended Nine months ended September 30,
September 30,
(Cdn$ in thousands, except per share amounts) 2021 2020 2021 2020
Net income (loss) 22,485 987 24,710 (29,218)
Unrealized foreign exchange (gain) loss 9,511 (7,512) 14,545 9,250
Realized foreign exchange gain on settlement of long-term debt - - (13,000) -
Loss on settlement of long-term debt - - 5,798 -
Call premium on settlement of long-term debt - - 6,941 -
Unrealized (gain) loss on derivatives (6,817) 1,056 (5,645) 1,236
Estimated tax effect of adjustments 1,841 (285) (1,916) (334)
Adjusted net income (loss) 27,020 (5,754) 31,433 (19,066)
Adjusted EPS 0.10 (0.02) 0.11 (0.08)
Adjusted EBITDA
Adjusted EBITDA is presented as a supplemental measure of the Company's
performance and ability to service debt. Adjusted EBITDA is frequently used by
securities analysts, investors and other interested parties in the evaluation
of companies in the industry, many of which present Adjusted EBITDA when
reporting their results. Issuers of "high yield" securities also present
Adjusted EBITDA because investors, analysts and rating agencies consider it
useful in measuring the ability of those issuers to meet debt service
obligations.
Adjusted EBITDA represents net income before interest, income taxes, and
depreciation and also eliminates the impact of a number of items that are not
considered indicative of ongoing operating performance. Certain items of
expense are added and certain items of income are deducted from net income
that are not likely to recur or are not indicative of the Company's underlying
operating results for the reporting periods presented or for future operating
performance and consist of:
* Unrealized foreign exchange gains/losses;
* Unrealized gain/loss on derivatives;
* Loss on settlement of long term debt (included in finance expenses) and call
premium;
* Realized foreign exchange gain on settlement of long-term debt; and
* Amortization of share-based compensation expense.
Three months ended September 30, Nine months ended September 30,
(Cdn$ in thousands) 2021 2020 2021 2020
Net income (loss) 22,485 987 24,710 (29,218)
Add:
Depletion and amortization 17,011 23,894 50,385 76,554
Finance expense (includes loss on settlement of long-term debt and call premium) 11,875 11,203 47,482 32,435
Finance income (201) (4) (460) (202)
Income tax (recovery) expense 22,310 (580) 25,041 (6,372)
Unrealized foreign exchange (gain) loss 9,511 (7,512) 14,545 9,250
Realized foreign exchange gain on settlement of long-term debt - - (13,000) -
Unrealized (gain) loss on derivatives (6,817) 1,056 (5,645) 1,236
Amortization of share-based compensation expense 117 2,501 4,687 4,068
Adjusted EBITDA 76,291 31,545 147,745 87,751
NON-GAAP PERFORMANCE MEASURES – CONTINUED
Earnings from mining operations before depletion and amortization
Earnings from mining operations before depletion and amortization is earnings
from mining operations with depletion and amortization added back. The Company
discloses this measure, which has been derived from our financial statements
and applied on a consistent basis, to provide assistance in understanding the
results of the Company's operations and financial position and it is meant to
provide further information about the financial results to investors.
Three months ended Nine months ended
September 30, September 30,
(Cdn$ in thousands) 2021 2020 2021 2020
Earnings from mining operations 66,670 11,811 118,091 15,410
Add:
Depletion and amortization 17,011 23,894 50,385 76,554
Earnings from mining operations before depletion and 83,681 35,705 168,476 91,964
amortization
Site operating costs per ton milled
Three months ended Nine months ended
September 30, September 30,
(Cdn$ in thousands, except per ton milled amounts) 2021 2020 2021 2020
Site operating costs (included in cost of sales) 50,134 53,549 147,043 151,128
Tons milled (thousands) (75% basis) 5,576 5,595 16,406 16,965
Site operating costs per ton milled $8.99 $9.57 $8.96 $8.91
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" that were based on
Taseko's expectations, estimates and projections as of the dates as of which
those statements were made. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "outlook",
"anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual results,
level of activity, performance or achievements to be materially different from
those expressed or implied by such forward-looking statements. These included
but are not limited to:
* uncertainties about the effect of COVID-19 and the response of local,
provincial, federal and international governments to the threat of COVID-19 on
our operations (including our suppliers, customers, supply chain, employees
and contractors) and economic conditions generally and in particular with
respect to the demand for copper and other metals we produce;
* uncertainties and costs related to the Company's exploration and development
activities, such as those associated with continuity of mineralization or
determining whether mineral resources or reserves exist on a property;
* uncertainties related to the accuracy of our estimates of mineral reserves,
mineral resources, production rates and timing of production, future
production and future cash and total costs of production and milling;
* uncertainties related to feasibility studies that provide estimates of
expected or anticipated costs, expenditures and economic returns from a mining
project;
* uncertainties related to the ability to obtain necessary licenses permits
for development projects and project delays due to third party opposition;
* uncertainties related to unexpected judicial or regulatory proceedings;
* changes in, and the effects of, the laws, regulations and government
policies affecting our exploration and development activities and mining
operations, particularly laws, regulations and policies;
* changes in general economic conditions, the financial markets and in the
demand and market price for copper, gold and other minerals and commodities,
such as diesel fuel, steel, concrete, electricity and other forms of energy,
mining equipment, and fluctuations in exchange rates, particularly with
respect to the value of the U.S. dollar and Canadian dollar, and the continued
availability of capital and financing;
* the effects of forward selling instruments to protect against fluctuations
in copper prices and exchange rate movements and the risks of counterparty
defaults, and mark to market risk;
* the risk of inadequate insurance or inability to obtain insurance to cover
mining risks;
* the risk of loss of key employees; the risk of changes in accounting
policies and methods we use to report our financial condition, including
uncertainties associated with critical accounting assumptions and estimates;
* environmental issues and liabilities associated with mining including
processing and stock piling ore; and
* labour strikes, work stoppages, or other interruptions to, or difficulties
in, the employment of labour in markets in which we operate mines, or
environmental hazards, industrial accidents or other events or occurrences,
including third party interference that interrupt the production of minerals
in our mines.
For further information on Taseko, investors should review the Company's
annual Form 40-F filing with the United States Securities and Exchange
Commission www.sec.gov and home jurisdiction filings that are available at
www.sedar.com.
Cautionary Statement on Forward-Looking Information
This discussion includes certain statements that may be deemed
"forward-looking statements". All statements in this discussion, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities, and events or
developments that the Company expects are forward-looking statements.
Although we believe the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration successes,
continued availability of capital and financing and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements.
All of the forward-looking statements made in this MD&A are qualified by these
cautionary statements. We disclaim any intention or obligation to update or
revise any forward-looking statements whether as a result of new information,
future events or otherwise, except to the extent required by applicable law.
Further information concerning risks and uncertainties associated with these
forward-looking statements and our business may be found in our most recent
Form 40-F/Annual Information Form on file with the SEC and Canadian provincial
securities regulatory authorities.
For further information on Taseko, please see the Company's website at
www.tasekomines.com or contact: Brian Bergot, Vice President, Investor
Relations – 778-373-4554, toll free 1-800-667-2114
SOURCE Taseko Mines Limited
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