REG-Taseko Mines Limited: Taseko Reports Second Quarter 2021 Earnings
05/08/2021 07:05
Taseko Reports $48 Million of Adjusted EBITDA* for the Second 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, Aug. 4, 2021 -- Taseko Mines Limited (TSX: TKO) (NYSE American:
TGB) (LSE: TKO) ("Taseko" or the "Company") reports financial results for the
three months ended June 30, 2021. Adjusted EBITDA* for the period was $47.7
million and Earnings from mining operations before depletion and amortization
was $54.5 million, increases of 101% and 80%, respectively, over the first
quarter of 2021. Net income for the second quarter 2021 was $13.4 million,
or $0.05 per share, and Adjusted net income was $9.9 million, or $0.04 per
share.
Stuart McDonald, President and CEO of Taseko, commented, "Our improved
financial performance in the quarter was a result of the 20% increase in
copper production at Gibraltar, and bolstered by strong copper prices which
averaged US$4.40 per pound for the period. Head grades at Gibraltar
increased in the latter part of the second quarter as we transitioned into
higher-grade benches, although average head grade for the quarter was still
below the life of mine average. With improving grades, we expect total
copper production in the second half of the year to be at least 40% higher
than the first half, which will lead to lower unit costs and improved margins
and cash flow generation."
"At our Florence Copper project, permitting, engineering and procurement
activities are progressing. As reported in early July, we expect the draft
Underground Injection Control permit will be issued by the US EPA later in the
third quarter. Detailed engineering is now 60% complete and at a point where
we can begin securing and making initial payments on key, long lead items for
the solvent extraction and electrowinning ("SX/EW") plant," continued Mr.
McDonald. "Our balance sheet remains in a strong position with $226 million of
cash on hand at June 30(th), and a price protection strategy in place that
assures strong cash flow generation over the next year. Advancing
procurement initiatives will position us to efficiently progress into
construction upon receipt of the final permit. Florence Copper will be
America's new, innovative and low impact copper producer supplying the US
domestic market with green copper."
Mr. McDonald added, "We recently announced the sale of our Harmony Gold
project to JDS Gold Inc., who are a proven team of mine developers and
builders. Harmony is an advanced stage gold project, and by retaining a 15%
carried interest in JDS Gold Inc. and a 2% NSR on the project, we have the
opportunity to realize significant value from this asset over the next few
years. We will continue to look for other opportunities to create
shareholder value from our extensive portfolio of long-life assets."
*Non-GAAP performance measure. See end of news release
Second Quarter Review
* Second quarter earnings from mining operations before depletion and
amortization* was $54.5 million, Adjusted EBITDA* was $47.7 million and
Adjusted net income* was $9.9 million ($0.04 per share);
* Cash flows from operations was $72.5 million and the Company's cash balance
at June 30, 2021 was $225.7 million;
* Site operating costs, net of by-product credits* were US$1.77 per pound
produced, and total operating costs (C1)* were US$2.02 per pound produced;
* The Gibraltar mine produced 26.8 million pounds of copper in the second
quarter. Copper recoveries were 83.3% and copper head grades were 0.22%.
Mining operations transitioned into higher-grade benches in the Pollyanna pit
in the later part of the quarter which resulted in a 20% increase in copper
production over the first quarter and in line with management expectations;
* Gibraltar sold 26.7 million pounds of copper in the quarter (100% basis)
which resulted in $105.5 million of revenue for Taseko. Average LME copper
prices were US$4.40 per pound in the quarter;
* In June, Gibraltar's long term offtake agreement for copper concentrate was
extended with treatment and refining costs priced within a range of a 40% to
50% discount to benchmark levels, reflecting the high quality of Gibraltar
concentrate;
* Detailed engineering and design of the commercial facility at Florence
Copper is now 60% complete and the Company is preparing to make initial
deposits for major processing equipment associated with the SX/EW plant, which
will allow Florence Copper to efficiently advance construction activities upon
receipt of the Underground Injection Control ("UIC") permit. The Company
expects a draft UIC permit to be issued in the third quarter which will be
followed by a public comment period;
* During the quarter, the Company extended its copper price protection
strategy by purchasing 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. These 2022 collar contracts supplement
the existing put option protection at US$3.75 per pound in place for the
second half of 2021 for 41 million pounds of copper; and
* In July 2021, the Company entered into an agreement to sell the Harmony Gold
Project ("Harmony") to JDS Gold Inc. ("JDS Gold"), a newly incorporated
company controlled by JDS Energy & Mining Inc. and affiliates. Under the terms
of the agreement, JDS Gold will become the owner and operator of Harmony, a
high-grade development-stage gold project located on Graham Island in Haida
Gwaii. The Company retains a 2% net smelter return royalty in Harmony and a
15% carried interest in JDS Gold.
*Non-GAAP performance measure. See end of news release
HIGHLIGHTS
Operating Data (Gibraltar - 100% basis) Three months ended June 30, Six months ended June 30,
2021 2020 Change 2021 2020 Change
Tons mined (millions) 24.9 20.5 4.4 56.9 49.0 7.9
Tons milled (millions) 7.2 7.7 (0.5) 14.4 15.2 (0.8)
Production (million pounds Cu) 26.8 36.8 (10.0) 49.0 69.2 (20.2)
Sales (million pounds Cu) 26.7 39.3 (12.6) 48.7 70.4 (21.7)
Financial Data Three months ended June 30, Six months ended June 30,
(Cdn$ in thousands, except for per share amounts) 2021 2020 Change 2021 2020 Change
Revenues 111,002 106,005 4,997 197,743 168,089 29,654
Earnings from mining operations before depletion and amortization (*) 54,482 50,336 4,146 84,795 56,259 28,536
Cash flows provided by operations 72,502 37,079 35,423 69,219 54,750 14,469
Adjusted EBITDA (*) 47,732 50,860 (3,128) 71,454 56,206 15,248
Adjusted net income (loss) (*) 9,948 8,335 1,613 4,414 (13,312) 17,726
Per share - basic ("adjusted EPS") (*) 0.04 0.03 0.01 0.02 (0.05) 0.07
Net income (loss) (GAAP) 13,442 18,745 (5,303) 2,225 (30,205) 32,430
Per share - basic ("EPS") 0.05 0.08 (0.03) 0.01 (0.12) 0.13
*Non-GAAP performance measure. See end of news release
REVIEW OF OPERATIONS
Gibraltar mine (75% Owned)
Operating data (100% basis) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Tons mined (millions) 24.9 32.0 26.4 23.3 20.5
Tons milled (millions) 7.2 7.2 7.5 7.5 7.7
Strip ratio 2.3 6.0 1.9 1.5 1.9
Site operating cost per ton milled (CAD$)* $9.16 $8.73 $11.67 $9.57 $7.66
Copper concentrate
Head grade (%) 0.22 0.19 0.20 0.23 0.28
Copper recovery (%) 83.3 81.5 83.3 85.0 85.2
Production (million pounds Cu) 26.8 22.2 25.0 28.9 36.8
Sales (million pounds Cu) 26.7 22.0 25.0 28.6 39.3
Inventory (million pounds Cu) 3.5 3.6 3.4 3.6 3.8
Molybdenum concentrate
Production (thousand pounds Mo) 402 530 549 668 639
Sales (thousand pounds Mo) 455 552 487 693 656
Per unit data (US$ per pound produced) (*)
Site operating costs (*) $2.02 $2.23 $2.67 $1.85 $1.15
By-product credits (*) (0.25) (0.27) (0.14) (0.14) (0.11)
Site operating costs, net of by-product credits (*) $1.77 $1.96 $2.53 $1.71 $1.04
Off-property costs 0.25 0.27 0.29 0.29 0.30
Total operating costs (C1) (*) $2.02 $2.23 $2.82 $2.00 $1.34
Second Quarter Review
Copper production in the second quarter was 26.8 million pounds and improved
20% from the first quarter as higher ore grades were mined and processed from
the Pollyanna pit in the latter part of the quarter. Copper recoveries also
improved with the increasing ore grade.
A total of 24.9 million tons were mined in the second quarter in line with the
mine plan. Mining rates and strip ratio were lower than the first quarter,
which saw shorter hauling distances in the upper benches of the Pollyanna
pit. In addition to longer hauls in the second quarter, mining rates were
also impacted by a temporary layoff of mining personnel due to permitting
delays. Initial waste stripping and dewatering of the Gibraltar pit
commenced in May after receipt of the required permit.
Total site spending (including capitalized stripping of $14.8 million on a 75%
basis) was generally consistent with the prior quarter. Capitalized stripping
in the quarter decreased from the first quarter as a result of the lower strip
ratio. Capital expenditures of $8.0 million on a 75% basis in the second
quarter was higher than the first quarter due to timing of routine
maintenance.
*Non-GAAP performance measure. See end of news release
REVIEW OF OPERATIONS - CONTINUED
Molybdenum production was 402 thousand pounds in the second quarter.
Molybdenum prices strengthened in the second quarter and reached a high of
just over US$20 per pound in late June. The average price of US$14.32 per
pound was a $3.00 per pound increase from the first quarter. By-product
credits per pound of copper produced* was US$0.25 in the second quarter, a
decrease over the prior quarter due primarily to an increase in copper pounds
produced.
Off-property costs per pound produced* were US$0.25 for the second quarter
and lower than prior quarters due to the benefit of lower treatment and
refining charges ("TCRC") on Gibraltar's offtake contracts. In addition, the
Company delivered a tender shipment in the quarter at one of the lowest TCRC
levels ever seen by the Gibraltar mine.
Total operating costs per pound produced (C1)* were US$2.02 for the quarter.
Contributing to the decrease in C1* costs was significantly increased copper
production compared to the first quarter, partially offset by lower
capitalized stripping costs and a weaker US dollar in the second quarter.
GIBRALTAR OUTLOOK
Mining will continue to be focused on the Pollyanna pit which will be the main
source of ore in 2021. Ore release from the Gibraltar pit will commence in the
second half of the year. Total copper production in the second half of 2021 is
expected to be at least 40% higher than the first half of the year, as
higher-grade areas in Pollyanna are opened up and available for processing.
Due to the lower production at the start of 2021, annual production is now
anticipated to be approximately 120 million pounds, which is within the
typical +/- 5% range for annual guidance.
Copper prices rallied to record levels in the second quarter and are currently
around US$4.31 per pound. The current copper price and expected production
growth is supportive of improved financial performance at the Gibraltar mine
over the remainder of 2021.
Many governments are now focusing on increased infrastructure investment to
stimulate economic recovery after the pandemic, including green initiatives,
which will require new primary supplies of copper. Most industry analysts are
projecting ongoing supply constraints and deficits, which should support these
higher copper prices in the years to come.
In March 2021, the Company extended its copper price protection strategy by
purchasing put options covering 41 million pounds of copper at a strike price
of US$3.75 per pound for the second half of 2021. The Company has also
purchased copper collars to secure a minimum copper price of US$4.00 per pound
for 43 million pounds of copper for the first half of 2022. This approach to
managing copper price volatility 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.
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 unique low-cost copper project that will have 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 also be
in the lowest quartile of the global copper cost curve. The Company has
successfully operated a Production Test Facility ("PTF") for the last two
years at Florence to demonstrate that the in-situ copper recovery ("ISCR")
process can produce high quality cathode while operating within permit
conditions.
*Non-GAAP performance measure. See end of news release
FLORENCE COPPER - CONTINUED
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"). The
EPA's technical review for the UIC permit has not identified any issues and
the Company expects to receive the draft UIC permit in the third quarter
followed by a public comment period.
Detailed engineering and design for the commercial production facility is now
60% complete and the Company is preparing to make initial deposits for major
processing equipment associated with the SX/EW plant starting in the third
quarter to ensure a smooth and efficient transition into construction once the
final UIC permit is received.
With a cash balance of $226 million at the end of June, the Company has the
majority of the required funding for construction of the commercial facility
at Florence Copper in hand. Coupled with stronger expected operating cash
flows from Gibraltar due to higher prevailing copper prices, the Company has
numerous options available to obtain any remaining funding.
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 focused primarily on
copper and are located in British Columbia.
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 the environmental
assessment and some additional engineering work in conjunction with ongoing
engagement with local communities including First Nations. A focus group has
been formed between the Company and high-level regulators in the appropriate
Provincial ministries in order to expedite the advancement of the
environmental assessment and the permitting of the project.
*Non-GAAP performance measure. See end of news release
LONG-TERM GROWTH STRATEGY - CONTINUED
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, which is underway, 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, August 5, 2021 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) 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 August 19, 2021 and can be accessed by dialing 416-764-8677 Canada, 888-390-0541 in the United States, or online at tasekomines.com/investors/events and using the passcode 121055#.
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% Three months ended Six months ended June 30,
June 30,
basis 2021 2020 2021 2020
Cost of sales 74,056 81,181 146,322 164,490
Less:
Depletion and amortization (17,536) (25,512) (33,374) (52,660)
Net change in inventories of finished goods (4,723) (5,753) (2,464) (4,451)
Net change in inventories of ore stockpiles 2,259 (50) (5,967) 553
Transportation costs (4,303) (5,834) (7,608) (10,353)
Site operating costs 49,753 44,032 96,909 97,579
Less by-product credits:
Molybdenum, net of treatment costs (6,138) (4,252) (11,742) (7,483)
Silver, excluding amortization of deferred revenue 64 (28) (174) (382)
Site operating costs, net of by-product credits 43,679 39,752 84,993 89,714
Total copper produced (thousand pounds) 20,082 27,576 36,766 51,894
Total costs per pound produced 2.18 1.44 2.31 1.73
Average exchange rate for the period (CAD/USD) 1.23 1.39 1.25 1.37
Site operating costs, net of by-product credits (US$ per pound) 1.77 1.04 1.85 1.27
Site operating costs, net of by-product credits 43,679 39,752 84,993 89,714
Add off-property costs:
Treatment and refining costs 1,879 5,676 4,293 10,632
Transportation costs 4,303 5,834 7,608 10,353
Total operating costs 49,861 51,262 96,894 110,699
Total operating costs (C1) (US$ per pound) 2.02 1.34 2.11 1.56
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, 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 Six months ended June 30,
June 30,
(Cdn$ in thousands, except per share amounts) 2021 2020 2021 2020
Net income (loss) 13,442 18,745 2,225 (30,205)
Unrealized foreign exchange (gain) loss (3,764) (12,985) 5,034 16,762
Realized foreign exchange gain on settlement of long-term debt - - (13,000) -
Loss on settlement of long-term debt - - 12,739 -
Unrealized loss on derivatives 370 3,528 1,172 180
Estimated tax effect of adjustments (100) (953) (3,756) (49)
Adjusted net income (loss) 9,948 8,335 4,414 (13,312)
Adjusted EPS 0.04 0.03 0.02 (0.05)
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);
* Realized foreign exchange gain on settlement of long-term debt; and
* Amortization of share-based compensation expense.
Three months ended June 30, Six months ended June 30,
(Cdn$ in thousands) 2021 2020 2021 2020
Net income (loss) 13,442 18,745 2,225 (30,205)
Add:
Depletion and amortization 17,536 25,512 33,374 52,660
Finance expense (includes loss on settlement of long-term debt) 11,649 10,461 35,607 21,232
Finance income (184) (48) (259) (198)
Income tax (recovery) expense 7,033 4,326 2,731 (5,792)
Unrealized foreign exchange (gain) loss (3,764) (12,985) 5,034 16,762
Realized foreign exchange gain on settlement of long-term debt - - (13,000) -
Unrealized loss on derivatives 370 3,528 1,172 180
Amortization of share-based compensation expense 1,650 1,321 4,570 1,567
Adjusted EBITDA 47,732 50,860 71,454 56,206
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 Six months ended
June 30, June 30,
(Cdn$ in thousands) 2021 2020 2021 2020
Earnings from mining operations 36,946 24,824 51,421 3,599
Add:
Depletion and amortization 17,536 25,512 33,374 52,660
Earnings from mining operations before depletion and amortization 54,482 50,336 84,795 56,259
Site operating costs per ton milled
Three months ended Six months ended
June 30, June 30,
(Cdn$ in thousands, except per ton milled amounts) 2021 2020 2021 2020
Site operating costs (included in cost of sales) 49,753 44,032 96,909 97,579
Tons milled (thousands) (75% basis) 5,429 5,748 10,831 11,370
Site operating costs per ton milled $9.16 $7.66 $8.95 $8.58
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
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