REG-Taseko Mines Limited: Taseko Reports Third Quarter 2023
02/11/2023 07:15
Taseko Reports $63 Million of Adjusted EBITDA for Third Quarter 2023
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 87.5% owned Gibraltar Mine is located north of the City of Williams Lake in south-central British Columbia. Production and sales volumes stated in this release are on a 100% basis unless otherwise indicated.
VANCOUVER, BC, Nov. 1, 2023 -- Taseko Mines Limited (TSX: TKO) (NYSE
American: TGB) ( LSE: TKO) ("Taseko" or the "Company") reports third quarter
2023 Adjusted EBITDA* of $63 million and Earnings from mining operations
before depletion and amortization* of $65 million. Adjusted net earnings* for
the quarter were $20 million, or $0.07 per share.
Gibraltar produced 35 million pounds of copper and 369 thousand pounds of
molybdenum in the third quarter, 26% and 60% higher than the second quarter,
respectively. Improved production was a result of higher grades, throughput
and recoveries. Higher production, of both copper and molybdenum, drove Total
operating costs (C1)* down 17% to US$2.20 per pound.
Adjusted EBITDA* increased by 182% over the prior quarter despite third
quarter sales volumes being impacted by a port workers strike in July. The
excess inventory at the end of the third quarter is expected to be shipped and
sold in the fourth quarter.
Stuart McDonald, President and CEO of Taseko, commented "In the third quarter
a major milestone was achieved at our Florence Copper project; receipt of the
final Underground Injection Control permit from the US Environmental
Protection Agency ("EPA"). This week the EPA confirmed that no appeals or
objections have been received and that the permit is now effective. This is a
great result and evidence of the quality and integrity of the project.
We are now preparing for construction and site preparation will begin later in
the fourth quarter. Florence financing discussions are well advanced
and the additional financings are expected to close in early 2024, and then
wellfield drilling will commence."
Mr. McDonald continued, "We are pleased with Gibraltar's performance in the
third quarter. Copper head grade increased to 0.26% in the period as the lower
benches of the Gibraltar pit provided the higher grades and more consistent
mineralized zones we expected. Mill performance was also strong as copper
recoveries averaged 85% and the softer ore in the Gibraltar pit helped to
achieve a throughput rate over 87,000 tons per day, 10% higher than the first
half of 2023. The Gibraltar pit will continue to be our main source of ore
through the middle of 2024, providing us with predictable and consistent mill
feed. The operation remains on track to meet the original 2023 production
guidance of 115 million pounds of copper (+/-5%)."
We continue to have our copper put protection in place US$3.75 per pound until
the end of the year, and we now have a minimum price of US$3.25 per pound
protected for the first quarter of 2024." concluded Mr. McDonald.
Third Quarter Review
* In September, the U.S. Environmental Protection Agency ("EPA") issued the
Final Underground Injection Control ("UIC") permit for the Florence Copper
Project and the permit became effective on October 31, 2023. The Company now
has all key permits in place to commence construction of the commercial
production facility at Florence;
* Third quarter earnings from mining operations before depletion and
amortization* was $65.4 million, Adjusted EBITDA* was $62.7 million, and cash
flows from operations were $27.0 million;
* GAAP net income was $0.9 million (nil per share) and Adjusted net income*
was $19.7 million ($0.07 per share) after normalizing for unrealized foreign
exchange and derivative losses;
* Gibraltar produced 35.4 million pounds of copper for the quarter, a 26%
improvement over the prior quarter as a result of higher grades, improved
recoveries and increased mill throughput;
* Copper head grades in the quarter improved to 0.26% as mining progressed
deeper into the Gibraltar pit and the lower benches provided the expected
improvement in ore grade and quality;
* Molybdenum grades also increased in the period, resulting in a 60% increase
in quarterly molybdenum production;
* Gibraltar sold 32.1 million pounds of copper in the third quarter (100%
basis). The B.C. port workers labour strike in early July caused shipping
delays and a build-up of Gibraltar copper concentrate inventory. As a result,
third quarter sales volumes lagged production by three million pounds, and the
excess inventory is expected to be shipped and sold in the fourth quarter;
* Total site costs* in the third quarter were $102.0 million on a 100% basis,
$3.4 million lower than the previous quarter due to lower explosive and
grinding media use, contractor services, and repairs and maintenance costs. C1
costs were US$2.20 per pound in the quarter;
* On October 25, 2023, the Company received the first US$20 million tranche of
its US$25 million equipment loan commitment from Bank of America for Florence
Copper; and
* The Company had a closing cash balance of $82 million at September 30, 2023.
*Non-GAAP performance measure. See end of news release
Highlights
Operating Data (Gibraltar – 100% basis) Three months ended Nine months ended September 30,
September 30,
2023 2022 Change 2023 2022 Change
Tons mined (millions) 16.5 23.2 (6.7) 64.0 65.7 (1.7)
Tons milled (millions) 8.0 8.2 (0.2) 22.4 23.0 (0.6)
Production (million pounds Cu) 35.4 28.3 7.1 88.5 70.3 18.2
Sales (million pounds Cu) 32.1 26.7 5.4 84.8 75.8 9.0
Financial Data Three months ended Nine months ended September 30,
September 30,
(Cdn$ in thousands, except for per share amounts) 2023 2022 Change 2023 2022 Change
Revenues 143,835 89,714 54,121 371,278 290,991 80,287
Earnings from mining operations before depletion and amortization (*) 65,445 18,570 46,875 134,248 68,564 65,684
Cash flows provided by operations 26,989 12,115 14,874 88,257 82,212 6,045
Adjusted EBITDA (*) 62,695 34,031 28,664 120,972 73,854 47,118
Net income (loss) (GAAP) 871 (23,517) 24,388 15,301 (23,696) 38,997
Per share – basic ("EPS") - (0.08) 0.08 0.05 (0.08) 0.13
Adjusted net income (loss) (*) 19,659 4,513 15,146 20,371 (5,423) 25,794
Per share – basic ("adjusted EPS") (*) 0.07 0.02 0.05 0.07 (0.02) 0.09
*Non-GAAP performance measure. See end of news release
Review of Operations
Gibraltar mine
Operating data (100% basis) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022
Tons mined (millions) 16.5 23.4 24.1 22.9 23.2
Tons milled (millions) 8.0 7.2 7.1 7.3 8.2
Strip ratio 0.4 1.5 1.9 1.1 1.5
Site operating cost per ton milled (Cdn$)* $12.39 $13.17 $13.54 $13.88 $11.33
Copper concentrate
Head grade (%) 0.26 0.24 0.22 0.22 0.22
Copper recovery (%) 85.0 81.9 80.7 83.4 77.1
Production (million pounds Cu) 35.4 28.2 24.9 26.7 28.3
Sales (million pounds Cu) 32.1 26.1 26.6 25.5 26.7
Inventory (million pounds Cu) 8.8 5.6 3.7 5.4 4.2
Molybdenum concentrate
Production (thousand pounds Mo) 369 230 234 359 324
Sales (thousand pounds Mo) 370 231 225 402 289
Per unit data (US$ per pound produced) (*)
Site operating costs (*) $2.10 $2.43 $2.94 $2.79 $2.52
By-product credits (*) (0.23) (0.13) (0.37) (0.40) (0.15)
Site operating costs, net of by-product credits (*) $1.87 $2.30 $2.57 $2.39 $2.37
Off-property costs 0.33 0.36 0.37 0.36 0.35
Total operating costs (C1) (*) $2.20 $2.66 $2.94 $2.75 $2.72
Operations Analysis
Third Quarter Review
Gibraltar produced 35.4 million pounds of copper for the third quarter, a 26%
increase over the second quarter due to higher mill throughput, ore grade and
recoveries. The lower benches of the Gibraltar pit are providing the expected
higher grades and more consistent mineralized zones. Mill throughput was 8.0
million tons for the period averaging 87,000 tons per day, which is above
nameplate capacity and 10% higher than the average throughput in the first
half of the year.
Copper head grades of 0.26% were higher than recent quarters as ore quality
improved in the lower benches of the Gibraltar pit, in line with management
expectations. Copper recoveries in the third quarter were 85.0%, improved
over previous quarters with the increasing head grades.
*Non-GAAP performance measure. See end of news release
Operations Analysis - Continued
A total of 16.5 million tons were mined in the third quarter which was lower
than recent quarters due to longer haul distances from the lower benches of
the Gibraltar pit. Total site costs* at Gibraltar of $102.0 million were $3.4
million lower than the previous quarter. Ore stockpiles increased by 2.9
million tons in the third quarter.
Molybdenum generated a by-product credit of US$0.23 per pound of copper
produced in the third quarter. Molybdenum production increased by 60% over
the second quarter due to the higher grade and consistency in mill operations.
The molybdenum price increased from the second quarter's average price of
US$21.30 per pound to an average of US$23.76 per pound.
Off-property costs per pound produced* were US$0.33 which is lower than the
recent quarters as copper sales lagged production.
Total operating costs per pound produced (C1)* were US$2.20 for the third
quarter, compared to US$2.72 in the same period in 2022 mainly attributed to
the higher production and with other key variances summarized in the bridge
graph below:
Gibraltar Outlook
Mining is well established in the lower benches of the Gibraltar pit and the
operation remains on track to meet the original production guidance of 115
million pounds of copper (+/-5%). The Gibraltar pit will continue to be the
main source of mill feed through to the middle of 2024. The excess inventory
at the end of the third quarter of 2023 as a result of the B.C. port workers
strike is expected to be shipped and sold before the end of this year.
*Non-GAAP performance measure. See end of news release
Gibraltar Outlook - Continued
Mill 2 is scheduled to be down for two weeks in the first quarter of 2024 for
a component replacement. The in-pit crusher for Mill 1 is planned to be
relocated in the second quarter of 2024 with an estimated remaining cost of $9
million. The approximate three-week downtime associated with the crusher move
will align with a maintenance shutdown that is required for Mill 1. No other
significant capital projects are planned for Gibraltar in 2024.
Our copper hedge protection continues to provide stable operating margins at
the Gibraltar mine amidst copper price volatility. Copper prices in the third
quarter averaged US$3.79 per pound, compared to the year-to-date average of
US$3.89 and the 2022 average of US$3.99 per pound. The Company currently has
copper price collar contracts in place that secure a minimum copper price of
US$3.75 per pound for 21 million pounds of copper for the fourth quarter and
copper price put contracts in place that secure a minimum copper price of
US$3.25 per pound for 21 million pounds of copper during the first quarter of
2024.
Florence Copper
On September 14, 2023, the Company received the final UIC permit from the EPA,
and the UIC permit became effective on October 31, 2023. The Company now has
all the key permits in place and is preparing to commence construction of the
commercial production facility. The next steps include procurement of
materials and supplies and finalizing agreements with key contractors,
including the general contractor for the solvent extraction and electrowinning
("SX/EW") plant and the drilling contractors for the wellfield development.
Site preparation and clearing for the initial wellfield, plant and
infrastructure will commence in the fourth quarter and the Company has started
the hiring of additional management and site personnel positions for the
construction and operations teams.
Detailed engineering and design for the commercial production facility is
substantially completed and procurement activities are well advanced. Major
processing equipment associated with the SX/EW plant has been procured and
delivered to the Florence site. The Company incurred $45.0 million of capital
expenditures at the Florence project in the first nine months of 2023.
The Company is also advancing Florence project level financing to fund
construction activities. On October 25, 2023, the Company closed the first
US$20 million tranche of its US$25 million equipment loan commitment from Bank
of America. The Company's financial adviser, Endeavour Financial, has been
leading the origination of additional finance commitments for Florence
Copper. Discussions are well advanced and the Company is targeting
additional funding commitments of approximately US$100 million in royalties
and debt at Florence Copper, in addition to the commitments already received
from Mitsui and Bank of America.
In March 2023, the Company announced the results of recent technical work and
updated economics for the Florence Copper project. The Company has filed a new
technical report entitled "NI 43-101 Technical Report Florence Copper Project,
Pinal County, Arizona" dated March 30, 2023 (the "Technical Report") on SEDAR.
The Technical Report was prepared in accordance with NI 43-101 and
incorporates updated capital and operating costs for the commercial production
facility and refinements made to the operating models, based on the Production
Test Facility ("PTF") results.
Florence Copper - Continued
The technical work completed by Taseko in recent years has been extensive and
has de-risked the project significantly. The PTF operated successfully over an
18-month period and provided a valuable opportunity to test operational
controls and strategies which will be applied in future commercial operations.
In addition, a more sophisticated leaching model has been developed and
calibrated to the PTF wellfield performance. This detailed modeling data,
along with updated costing, has been used to update assumptions for the ramp
up and operation of the commercial wellfield and processing facility.
Florence Copper Project Highlights:
* Net present value of US$930 million (after-tax at an 8% discount rate)
* Internal rate of return of 47% (after-tax)
* Payback period of 2.6 years
* Operating costs (C1) of US$1.11 per pound of copper
* Annual production capacity of 85 million pounds of LME grade A cathode
copper
* 22 year mine life
* Total life of mine production of 1.5 billion pounds of copper
* Total estimated initial capital cost of US$232 million remaining
* Long-term copper price of US$3.75 per pound
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.
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 based on the Company's
2020 NI 43-101 technical report. 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 preparing to advance 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.
Long-term Growth Strategy - Continued
New Prosperity Gold-Copper Project
In late 2019, the Tŝilhqot'in Nation, as represented by Tŝilhqot'in National
Government, and Taseko entered into a confidential dialogue, with the
involvement of the Province of British Columbia, in order to obtain a
long-term resolution of the conflict regarding Taseko's proposed copper-gold
mine previously known as New Prosperity, acknowledging Taseko's commercial
interests and the Tŝilhqot'in Nation's opposition to the project.
This dialogue has been supported by the parties' agreement, beginning December
2019, to a series of one-year standstills on certain outstanding litigation
and regulatory matters relating to Taseko's tenures and the area in the
vicinity of Teẑtan Biny (Fish Lake). The standstill agreement was most
recently extended for a fourth one-year term in December 2022, with the goal
of providing time and opportunity for the Tŝilhqot'in Nation and Taseko to
negotiate a final resolution.
The dialogue process has made tangible progress in the past 12 months but is
not complete. In agreeing to extend the standstill through 2023, the
Tŝilhqot'in Nation and Taseko acknowledge the constructive nature of
discussions to date, and the future opportunity to conclude a long-term and
mutually acceptable resolution of the conflict that also makes an important
contribution to the goals of reconciliation in Canada.
Aley Niobium Project
Environmental monitoring and product marketing initiatives on the Aley niobium
project continue. The converter pilot test is ongoing and is providing
additional process data to support the design of the commercial process
facilities and will provide final product samples for marketing purposes. The
Company has also initiated lab testwork on flowsheet development to produce
niobium oxide from floatation concentrate at Aley to supply the growing market
for niobium-based batteries.
The Company will host a telephone conference call and live webcast on Thursday, November 2, 2023 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.
To join the conference call without operator assistance, you may pre-register at https://bit.ly/Taseko-Q3-rapidconnect to receive an instant automated call back just prior to the start of the conference call. Otherwise, the conference call may be accessed by dialing 888-390-0546 toll free, 416-764-8688 in Canada, or online at tasekomines.com/investors/events.
The conference call will be archived for later playback until November 16, 2023 and can be accessed by dialing 888-390-0541 toll free, 416-764-8677 in Canada, or online at tasekomines.com/investors/events/ (https://c212.net/c/link/?t=0&l=en&o=4013680-1&h=1922978844&u=https%3A%2F%2Ftasekomines.com%2Finvestors%2Fevents%2F&a=tasekomines.com%2Finvestors%2Fevents%2F+)and using the entry code 154098#.
Stuart McDonald
President & CEO
Non-GAPP 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 (except for Q1, Q2 and Q3 2023) 2023 Q3 (1) 2023 Q2 (1) 2023 Q1 (1) 2022 Q4 2022 Q3
Cost of sales 94,383 99,854 86,407 73,112 84,204
Less:
Depletion and amortization (15,993) (15,594) (12,027) (10,147) (13,060)
Net change in inventories of finished goods 4,267 3,356 (399) 1,462 2,042
Net change in inventories of ore stockpiles 12,172 2,724 5,561 18,050 3,050
Transportation costs (7,681) (6,966) (5,104) (6,671) (6,316)
Site operating costs 87,148 83,374 74,438 75,806 69,920
Oxide ore stockpile reclassification from capitalized stripping - (3,183) 3,183 - -
Less by-product credits:
Molybdenum, net of treatment costs (9,900) (4,018) (9,208) (11,022) (4,122)
Silver, excluding amortization of deferred revenue 290 (103) (160) 263 25
Site operating costs, net of by-product credits 77,538 76,070 68,253 65,047 65,823
Total copper produced (thousand pounds) 30,978 24,640 19,491 20,020 21,238
Total costs per pound produced 2.50 3.09 3.50 3.25 3.10
Average exchange rate for the period (CAD/USD) 1.34 1.34 1.35 1.36 1.31
Site operating costs, net of by-product credits (US$ per pound) 1.87 2.30 2.59 2.39 2.37
Site operating costs, net of by-product credits 77,538 76,070 68,253 65,047 65,823
Non-GAPP Performance Measures - Continued Add off-property costs:
Treatment and refining costs 6,123 4,986 4,142 3,104 3,302
Transportation costs 7,681 6,966 5,104 6,671 6,316
Total operating costs 91,342 88,022 77,499 74,822 75,441
Total operating costs (C1) (US$ per pound) 2.20 2.66 2.94 2.75 2.72
(1)Q1, Q2 and Q3 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.
Total Site Costs
Total site costs are comprised of the site operating costs charged to cost of
sales as well as mining costs capitalized to property, plant and equipment in
the period. This measure is intended to capture Taseko's share of the total
site operating costs incurred in the quarter at the Gibraltar mine calculated
on a consistent basis for the periods presented.
(Cdn$ in thousands, unless otherwise indicated) –75% basis (except for Q1, Q2 and Q3 2023) 2023 Q3 (1) 2023 Q2 (1) 2023 Q1 (1) 2022 Q4 2022 Q3
Site operating costs 87,148 83,374 74,438 75,806 69,920
Add:
Capitalized stripping costs 2,083 8,832 12,721 3,866 1,121
Total site costs – Taseko share 89,231 92,206 87,159 79,672 71,041
Total site costs – 100% basis 101,978 105,378 112,799 106,230 94,721
(1)Q1, Q2 and Q3 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.
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 gain/loss;
* Unrealized gain/loss on derivatives; and
* Finance and other non-recurring costs.
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.
Non-GAPP Performance Measures - Continued
(Cdn$ in thousands, except per share amounts) 2023 Q3 2023 Q2 2023 Q1 2022 Q4
Net income (loss) 871 9,991 4,439 (2,275)
Unrealized foreign exchange (gain) loss 14,582 (10,966) (950) (5,279)
Unrealized (gain) loss on derivatives 4,518 (6,470) 2,190 20,137
Finance and other non-recurring costs 1,244 1,714 - -
Estimated tax effect of adjustments (1,556) 1,355 (591) (5,437)
Adjusted net income (loss) 19,659 (4,376) 5,088 7,146
Adjusted EPS 0.07 (0.02) 0.02 0.02
(Cdn$ in thousands, except per share amounts) 2022 Q3 2022 Q2 2022 Q1 2021 Q4
Net income (loss) (23,517) (5,274) 5,095 11,762
Unrealized foreign exchange (gain) loss 28,083 11,621 (4,398) (1,817)
Unrealized (gain) loss on derivatives (72) (30,747) 7,486 4,612
Estimated tax effect of adjustments 19 8,302 (2,021) (1,245)
Adjusted net income (loss) 4,513 (16,098) 6,162 13,312
Adjusted EPS 0.02 (0.06) 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 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;
* Amortization of share-based compensation expense; and
* Non-recurring other expenses
Non-GAPP Performance Measures - Continued
(Cdn$ in thousands) 2023 Q3 2023 Q2 2023 Q1 2022 Q4
Net income (loss) 871 9,991 4,439 (2,275)
Add:
Depletion and amortization 15,993 15,594 12,027 10,147
Finance expense 14,285 13,468 12,309 10,135
Finance income (322) (757) (921) (700)
Income tax expense 12,041 678 3,356 1,222
Unrealized foreign exchange loss (gain) 14,582 (10,966) (950) (5,279)
Unrealized loss (gain) on derivatives 4,518 (6,470) 2,190 20,137
Amortization of share-based compensation expense 727 417 3,609 1,794
Non-recurring other expenses - 263 - -
Adjusted EBITDA 62,695 22,218 36,059 35,181
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) 2023 2022 2023 2022
Earnings from mining operations 49,452 5,510 90,634 26,729
Add:
Depletion and amortization 15,993 13,060 43,614 41,835
Earnings from mining operations before depletion and amortization 65,445 18,570 134,248 68,564
Non-GAPP Performance Measures - Continued
Site operating costs per ton milled
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 Company's site operations on a tons milled basis.
(Cdn$ in thousands, except per ton milled amounts) 2023 Q3 (1) 2023 Q2 (1) 2023 Q1 (1) 2022 Q4 2022 Q3
Site operating costs (included in cost of sales) – Taseko share 87,148 83,374 74,438 75,806 69,920
Site operating costs – 100% basis 99,598 95,285 95,838 101,075 93,226
Tons milled (thousands) 8,041 7,234 7,093 7,282 8,229
Site operating costs per ton milled $12.39 $13.17 $13.54 $13.88 $11.33
(1)Q1, Q2 and Q3 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.
No regulatory authority has approved or disapproved of the information in this
news release.
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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