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Small Cap
Market Cap £200.9m
Enterprise Value £390.4m
Revenue £198.5m
Position in Universe 407th / 2685

Taseko Mines Limited: Half year/2nd quarter financial results

Thu 6th August, 2020 7:00am
Taseko Delivers Solid Operational Performance and $51 Million of Adjusted
EBITDA in the Second Quarter

 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. 5, 2020 - Taseko Mines Limited (TSX: TKO) (NYSE American:
TGB) (LSE: TKO) ("Taseko" or the "Company") reports earnings from mining
operations before depletion and amortization* of $50.3 million, Adjusted
EBITDA* of $50.9 million and Net income of $18.7 million, or $0.08 per share,
in the second quarter of 2020.

Russell Hallbauer, CEO and Director, commented, "In March, in response to a
lower copper pricing environment, we seamlessly implemented a modified mine
plan at Gibraltar and are very pleased with our operating results for the
first half of 2020, and our response to the changing market conditions. The
copper price recovery from the lows in mid-March is remarkable and
demonstrates how strong the fundamentals for copper really are. With current
pricing at US$2.95 per pound, copper is 20% higher than the second quarter
average price. This price increase flows straight to Taseko's bottom line and
directly increases cash flow from Gibraltar. While we remain very bullish on
the prospects for copper, it is still early days in the recovery and we have
no intentions to adjust this current mine plan."

Stuart McDonald, President of Taseko stated, "Strong second quarter production
of 36.8 million pounds of copper and 644,000 pounds of molybdenum resulted in
a significant uptick in quarterly financial performance. Total operating costs
(C1)* of US$1.34 per pound combined with average copper prices for the quarter
of US$2.43 per pound provided Taseko with a strong operating margin of $50
million (excluding depletion and amortization) for the quarter. Our cash
balance increased to $64 million at the end of June, after making the C$15
million interest payment on our outstanding bonds."

"Copper production for the first half of 2020 was right on plan and in line
with the higher end of our original guidance. Production and site spending in
the second half of the year is expected to be at similar levels as the first
half," added Mr. McDonald.

Mr. Hallbauer continued, "As previously disclosed, we are expecting the draft
Aquifer Protection Permit to be issued by the Arizona Department of
Environmental Quality tomorrow. This is a very exciting milestone to have
achieved and is another important step closer to adding 85 million pounds of
low cost copper production to our Gibraltar base."   

 *Non-GAAP performance measure. See end of news release.  

"The US Environmental Protection Agency is nearing completion of their
technical review and no significant issues have been identified.  While
progress is being made, the COVID-19 situation in Arizona has had an impact on
the permitting process and this has extended the timeline by a few months, but
we still expect to have a fully permitted project in early 2021."

"Discussions with potential joint venture partners and lenders, as well as
streaming and royalty companies, continue. Interest on all fronts remains at a
high level and we believe a financing package will be finalized and committed
prior to final permits being issued. For the most part, this process has not
been hindered by COVID-19," concluded Mr. Hallbauer.

Second Quarter Review
* The Gibraltar Mine (100% basis) produced 36.8 million pounds of copper in
the second quarter, a 14% increase over the first quarter. Copper recoveries
were 85.2% and copper head grades were 0.281%;
* In April, management implemented a revised mine plan and budget for
Gibraltar which has reduced site spending in the current year while
maintaining long-term mine plan requirements.  Total operating costs (C1)*
were US$1.34 per pound produced in the second quarter, which is US$0.48 per
pound lower than the prior quarter, and in line with the revised operating
* Earnings from mining operations before depletion and amortization* were
$50.3 million, and Adjusted EBITDA* was $50.9 million;
* Cash flow from operations were $37.1 million and the Company had an ending
cash balance at June 30, 2020 of $63.6 million;
* Gibraltar sold 39.3 million pounds of copper in the quarter (100% basis)
which resulted in $106.0 million of revenue for Taseko, a 71% increase from
the first quarter.  Revenue included upward provisional price adjustments of
$10.1 million;
* Net income (GAAP) for the second quarter was $18.7 million ($0.08 per
share).  Adjusted net income* was $8.3 million ($0.03 per share);
* On April 24, 2020, Taseko concluded an amendment to its silver stream with
Osisko Gold Royalties and received $8.5 million in exchange for reducing the
delivery price of silver from US$2.75 per ounce to nil;
* Gibraltar also concluded a spot tender for copper concentrate in the second
half of the year at a TC/RC rate approximately 40% below the 2020 benchmark
level as buyers competed for clean, high quality concentrate like Gibraltar's;
* With all required production test results completed, Florence Copper made
the decision to begin the wind-down of the production test facility and to
commence the final phase of rinsing the small section of the orebody where the
test wellfield is located.  The Arizona Department of Environmental Quality
("ADEQ") has informed Taseko it plans to issue the draft Aquifer Protection
Permit on August 6, 2020; and
* In May 2020, Taseko published its first Environmental, Social, and
Governance report, which includes an examination of the Company's sustainable
performance, with specific details for 2017, 2018 and 2019.  The report is
available on the Company's website at www.tasekomines.com/esg.
 *Non-GAAP performance measure. See end of news release.  


 Operating Data (Gibraltar - 100% basis)                                            Three months ended June 30,                   Six months ended June 30,     
                                                                                                       2020      2019 Change         2020       2019     Change 
 Tons mined (millions)                                                                                 20.5      26.6    (6.1)       49.0       50.0      (1.0) 
 Tons milled (millions)                                                                                 7.7       7.7      ­­-       15.2       14.5        0.7 
 Production (million pounds Cu)                                                                        36.8      34.7      2.1       69.2       59.5        9.7 
 Sales (million pounds Cu)                                                                             39.3      32.3      7.0       70.4       55.6       14.8 
 Financial Data                                                                     Three months ended June 30,                   Six months ended June 30,     
 (Cdn$ in thousands, except for per share amounts)                                                     2020      2019 Change         2020       2019     Change 
 Revenues                                                                                           106,005    86,521   19,484    168,089    156,795     11,294 
 Earnings from mining operations before depletion and amortization*                                  50,336    18,646   31,690     56,259     34,375     21,884 
 Adjusted EBITDA (*)                                                                                 50,860    14,660   36,200     56,206     24,905     31,301 
 Cash flows provided by operations                                                                   37,079    11,073   26,006     54,750     18,264     36.486 
 Adjusted net income (loss) (*)                                                                       8,335  (17,471)   25,806   (13,312)   (31,890)     18,578 
 Per share - basic ("adjusted EPS") (*)                                                                0.03    (0.07)     0.10     (0.05)     (0.13)       0.08 
 Net income (loss) (GAAP)                                                                            18,745  (11,012)   29,757   (30,205)   (18,943)   (11,262) 
 Per share - basic ("EPS")                                                                             0.08    (0.04)     0.12     (0.12)     (0.08)     (0.04) 
 *Non-GAAP performance measure. See end of news release.                                                                                                        


Gibraltar Mine (75% Owned)

 Operating data (100% basis)                          Q2 2020  Q1 2020  Q4 2019  Q3 2019   Q2 2019 
 Tons mined (millions)                                    20.5     28.5     25.8     24.7     26.6 
 Tons milled (millions)                                    7.7      7.5      7.8      7.5      7.7 
 Strip ratio                                               1.9      2.7      2.1      3.0      2.3 
 Site operating cost per ton milled (CAD$)*              $7.66    $9.52   $10.46   $10.83   $11.51 
 Copper concentrate                                                                                
 Head grade (%)                                          0.281    0.259    0.253    0.249    0.256 
 Copper recovery (%)                                      85.2     83.4     84.5     87.7     87.7 
 Production (million pounds Cu)                           36.8     32.4     33.4     33.0     34.7 
 Sales (million pounds Cu)                                39.3     31.1     33.3     33.5     32.3 
 Inventory (million pounds Cu)                             3.8      6.4      5.0      5.0      5.5 
 Molybdenum concentrate                                                                            
 Production (thousand pounds Mo)                           639      412      728      620      653 
 Sales (thousand pounds Mo)                                656      403      791      518      708 
 Per unit data (US$ per pound produced) (*)                                                        
 Site operating costs (*)                                $1.15    $1.64    $1.85    $1.88    $1.92 
 By-product credits (*)                                 (0.11)   (0.11)   (0.16)   (0.16)   (0.21) 
 Site operating costs, net of by-product credits (*)     $1.04    $1.53    $1.69    $1.72    $1.71 
 Off-property costs                                       0.30     0.29     0.32     0.33     0.30 
 Total operating costs (C1) (*)                          $1.34    $1.82    $2.01    $2.05    $2.01 


Second quarter results

To-date, there have been no interruptions to the Company's operations,
logistics and supply chains as a result of the COVID-19 pandemic.  Effective
health and safety protocols continue to be implemented.  There have been no
known cases of COVID-19 at any of Taseko's locations in Canada and the US

However, the COVID-19 situation has had a significant impact on the global
economy which has led to increased volatility in commodity prices.  In light
of the volatility, management has reviewed a number of mine plan options for
Gibraltar and commencing in April implemented a revised mining plan for 2020
that will reduce spending in the near term while still maintaining long-term
mine plan requirements and flexibility, and without negatively impacting 2020
copper production. Copper production in the second quarter was 36.8 million
pounds as a result of grade and recovery as higher grade ore was mined from
the bottom of the Granite pit.

The strip ratio for the second quarter was 1.9 to 1 and was lower than
previous quarters due to less waste rock remaining in the Granite pit, but in
line with the life of mine average strip ratio.  The lower overall mining
rate resulted in reduced costs and the operation also benefited from falling
input costs, including diesel fuel which was 35% lower than 2019 average
prices.  As a result, total site spending (including capitalized stripping
costs) was 24% lower than the previous quarter. Shorter haul distances in the
Pollyanna pit also contributed to lower spending. 

Molybdenum production was 639 thousand pounds in the second quarter, an
increase from the prior quarter due to higher molybdenum grade, which also
increased recovery.  Molybdenum prices averaged US$8.37 per pound over the
second quarter compared to US$9.63 per pound in the prior quarter and
US$12.18 per pound in Q2 2019.  By-product credits per pound of copper
produced* was US$0.11 in the second quarter, consistent with the prior

Off-property costs per pound produced* were US$0.30 for the second quarter of
2020 and consist of concentrate treatment, refining and transportation costs.
These costs are in line with recent quarters relative to pounds of copper

 *Non-GAAP performance measure. See end of news release.  


Production guidance for 2020 remains unchanged at 130 million pounds (+/-5%),
although management expects production to be at the higher end of that range
based on its revised plan and the strong first half of 2020.  The new
operating plan and other identified cost savings will continue to result in
lower site spending in the coming months. Total site spending in the second
half of the year is expected to be at similar levels as the first half of
2020.  Operating a large, open pit mine such as Gibraltar requires
adaptability thus management will continue to monitor market conditions and
adjust operating plans as required to respond to copper price movements.

Mine site engineering has found opportunities in changing the pit development
sequencing by incorporating the Gibraltar pit after completion of the current
mining phase of the Granite pit. The Gibraltar pit has not been mined since
the 1970s and is the lowest work index ore (softer ore) on the Gibraltar
property. Access to, and processing of, this ore type will provide substantial
productivity and cost improvements to the operation once developed and active.

Copper prices have recovered swiftly due to recovery in Chinese demand and
supply disruptions, most notably in South America.  The medium to long-term
fundamentals for copper remain strong despite recent volatility caused by
uncertain global economic demand arising from the COVID-19 pandemic.  Most
industry analysts are projecting supply constraints after an economic
recovery, which should bring higher copper prices in the coming years.

 *Non-GAAP performance measure. See end of news release.  


Taseko's strategy has been to grow the Company from the operating cash flow
and credit quality of the Gibraltar Mine to assemble and develop a pipeline of
complimentary projects.  We continue to believe this will generate long-term
returns for shareholders. Our development projects are focused primarily on
copper and are located in stable mining jurisdictions in British Columbia and
Arizona.  Our current focus is on the near-term development of the Florence
Copper Project.

Florence Copper Project

The Production Test Facility ("PTF") operated continuously without disruption
during the second quarter of 2020.  Steady state operation was achieved in
2019 and the focus turned to testing different wellfield operating strategies,
including adjusting pumping rates, solution strength, flow direction, and the
use of packers in recovery and injection wells to isolate different zones of
the ore body. The operating team has used physical and operating control
mechanisms to adjust solution chemistry and flow rates and has successfully
achieved targeted copper concentration in solution. Pregnant leach solution
("PLS") grade in the centre recovery well (most representative of the
performance of the commercial wellfield) has been stable at roughly two grams
per litre since November and in June and July the SX/EW plant produced at a
rate of approximately one million pounds of copper cathode per year, mainly
from the centre recovery well. 

The PTF has provided valuable data to validate the Company's modelled
assumptions and operating parameters, and this data is being used to refine
operating plans for the commercial phase.  With all of the required data in
hand, we recently made the decision to wind down the production phase of the
test facility and commence rinsing the small section of the orebody where the
wellfield has been operating. 

Two permits are required to commence construction of the commercial scale
wellfield at Florence Copper, which is expected to produce 85 million pounds
of copper cathode annually for 20 years.  These are the Aquifer Protection
Permit ("APP") from the Arizona Department of Environmental Quality ("ADEQ")
and the Underground Injection Control ("UIC") Permit from the U.S.
Environmental Protection Agency ("EPA"). The Company has been informed by the
ADEQ that it will issue the draft APP on August 6, 2020.  After the draft
permit is issued there will be a 30-day public comment period and public
meetings before the final APP permit is approved.  The EPA is also nearing
completion of its technical review for the UIC permit, and no significant
issues have been identified.  While progress is being made, the COVID-19
situation in Arizona has had an impact on the EPA process and this has
extended the timeline by a few months, but management still expects the
project will be fully permitted in early 2021.

During the second quarter, the Company continued to advance discussions with
interested parties regarding the potential sale of a minority interest in the
Florence project, and the proceeds of any such sale could fund a significant
portion of the capital required to develop the commercial operation. 
Discussions with potential lenders and other finance providers are ongoing.
The Company targets having a committed financing package in place prior to
receipt of the permits.   

Total net expenditures at the Florence Project during the first half of 2020
were $9.1 million including operation of the PTF and other project development

Yellowhead Copper Project

In January 2020, the Company announced the results of its technical studies on
Yellowhead Mining Inc. ("Yellowhead") which resulted in a 22% increase in
recoverable copper reserves and significantly improved project economics. The
Company filed a new NI 43-101 technical report (dated January 16, 2020) (the
"Technical Report") on Sedar. Yellowhead holds a 100% interest in a
copper-gold-silver development project located in south-central British

The Technical Report outlines a new development plan for the project, which
includes an 817 million tonne reserve and a 25-year mine life with a pre-tax
NPV of $1.3 billion at an 8% discount rate using a US$3.10 per pound copper
price.  This represents a $500 million increase over the 2014 Feasibility
Study completed by the previous owner. 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. Management also
commenced joint venture partnering discussions in 2020 with a number of
strategic industry groups that are interested in potentially investing in the
Yellowhead project in combination with acquiring the significant copper
offtake rights.

In May 2020, the Company announced it has entered into an agreement with an
Indigenous Nation regarding Taseko's intentions to commence the regulatory
approval process of the Yellowhead Copper Project. The agreement represents
Taseko's commitment to recognize and respect the Nation's inherent right to
govern its lands, and the importance of assessing the Yellowhead Copper
Project in accordance with its values, laws, and community aspirations to make
an informed decision on the project.

New Prosperity Gold- Copper Project

On December 5, 2019, the Company announced that the T?ilhqot'in Nation as
represented by T?ilhqot'in National Government and Taseko have entered into a
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 opposition of the T?ilhqot'in Nation to the Project. While
the details of this process are confidential, in order to facilitate a
dialogue, the parties have agreed to a standstill on certain outstanding
litigation and regulatory matters which relate to Taseko's tenures and the
area in the vicinity of Teztan Biny (Fish Lake). 

Aley Niobium Project

Environmental monitoring and product marketing initiatives on the Aley Niobium
project continue. The pilot plant program commenced in the second quarter of
2019 has successfully completed the niobium flotation process portion of the
test, raising confidence in the design and providing feed to begin the
converter portion of the process. Completion of the converter portion of the
pilot plant will provide additional process data to support the design of the
commercial process facilities and provide final product samples for marketing

Note: Gibraltar is a contractual, unincorporated joint venture between Taseko
Mines Limited (75% interest) and Cariboo Copper Corp. (25% interest). All
production and sales figures are reported on a 100% basis, unless otherwise

 Taseko will host a telephone conference call and live webcast on Thursday, August 6, 2020 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 (888) 390-0546 in Canada and the United States, or (416) 764-8688 internationally.  The conference call will be archived for later playback until August 20, 2020 and can be accessed by     
 dialing (888) 390-0541 in Canada and the United States, or (416) 764-8677 internationally and using the passcode 273649 #.                                                                                                                                                                                                                                                                                                                                                                                                      

Russell Hallbauer
CEO and Director

No regulatory authority has approved or disapproved of the information in this
news release.


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.

                                                                    Three months ended  June 30,      Six months ended  June 30,    
 (Cdn$ in thousands, unless otherwise indicated) – 75% basis                  2020             2019            2020            2019 
 Cost of sales                                                              81,181           98,013         164,490         172,742 
 Depletion and amortization                                               (25,512)         (30,138)        (52,660)        (50,322) 
 Net change in inventories of finished goods                               (5,753)            3,989         (4,441)           8,035 
 Net change in inventories of ore stockpiles                                  (50)            (540)             543           (413) 
 Transportation costs                                                      (5,834)          (4,630)        (10,353)         (7,918) 
 Site operating costs                                                       44,032           66,694          97,579         122,124 
 Less by-product credits:                                                                                                           
 Molybdenum, net of treatment costs                                        (4,252)          (7,243)         (7,483)        (15,062) 
 Silver, excluding amortization of deferred revenue                           (28)             (93)           (382)           (279) 
 Site operating costs, net of by-product credits                            39,752           59,358          89,714         106,783 
 Total copper produced (thousand pounds)                                    27,576           26,020          51,894          44,661 
 Total costs per pound produced                                               1.44             2.28            1.73            2.39 
 Average exchange rate for the period (CAD/USD)                               1.39             1.34            1.37            1.33 
 Site operating costs, net of by-product credits (US$ per pound)              1.04             1.71            1.27            1.79 
 Site operating costs, net of by-product credits                            39,752           59,358          89,714         106,783 
 Add off-property costs:                                                                                                            
 Treatment and refining costs                                                5,676            5,839          10,632          10,105 
 Transportation costs                                                        5,834            4,630          10,353           7,918 
 Total operating costs                                                      51,262           69,827         110,699         124,806 
 Total operating costs (C1) (US$ per pound)                                   1.34             2.01            1.56            2.10 

Adjusted net income (loss)

Adjusted net income (loss) remove the effect of the following transactions
from net income as reported under IFRS:
* Unrealized foreign currency gains/losses; and
* Unrealized gain/loss on copper put and fuel call options.
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  June 30,      Six months ended  June 30,    
 ($ in thousands, except per share amounts)                              2020             2019            2020            2019 
 Net income (loss)                                                     18,745         (11,012)        (30,205)        (18,943) 
 Unrealized foreign exchange (gain) loss                             (12,985)          (6,258)          16,762        (12,947) 
 Unrealized (gain) loss on copper put and fuel call options             3,528            (276)             180               - 
 Estimated tax effect of adjustments                                    (953)               75            (49)               - 
 Adjusted net income (loss)                                             8,335         (17,471)        (13,312)        (31,890) 
 Adjusted EPS                                                            0.03           (0.07)          (0.05)          (0.13) 

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

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 copper put and fuel call options; and
* Amortization of share-based compensation expense.
                                                               Three months ended  June 30,      Six months ended  June 30,    
 ($ in thousands)                                                        2020             2019            2020            2019 
 Net income (loss)                                                     18,745         (11,012)        (30,205)        (18,943) 
 Depletion and amortization                                            25,512           30,138          52,660          50,322 
 Finance expense                                                       10,461           10,048          21,232          19,790 
 Finance income                                                          (48)            (299)           (198)           (607) 
 Income tax expense (recovery)                                          4,326          (8,125)         (5,792)        (14,941) 
 Unrealized foreign exchange (gain) loss                             (12,985)          (6,258)          16,762        (12,947) 
 Unrealized loss (gain) on copper put and fuel call options             3,528            (276)             180               - 
 Amortization of share-based compensation expense                       1,321              444           1,567           2,231 
 Adjusted EBITDA                                                       50,860           14,660          56,206          24,905 

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)                                                       2020        2019       2020       2019 
 Earnings (loss) from mining operations                                  24,824    (11,492)      3,599   (15,947) 
 Depletion and amortization                                              25,512      30,138     52,660     50,322 
 Earnings from mining operations before depletion and amortization       50,336      18,646     56,259     34,375 

Site operating costs per ton milled

                                                       Three months ended      Six months ended    
                                                            June 30,               June 30,        
 (Cdn$ in thousands, except per ton milled amounts)         2020        2019       2020       2019 
 Site operating costs (included in cost of sales)         44,032      66,694     97,579    122,124 
 Tons milled (thousands) (75% basis)                       5,748       5,794     11,370     10,890 
 Site operating costs per ton milled                       $7.66      $11.51      $8.58     $11.21 


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
* 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

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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