Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (March 2024)
33 slides from Taseko Mines's investor presentation, March 2024
Slide 1: Building North America’s Low-Cost Multi-Asset Copper Producer
Building North America’s Low-Cost Multi-Asset Copper Producer March 2024 1
Slide 2: Disclaimer
Disclaimer This meeting is strictly confidential and is for you to familiarize yourself with Taseko Mines Limited ("Taseko"). This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. You acknowledge t
Slide 3: Taseko Investment Highlights
Taseko Investment Highlights British Columbia Supportive Copper Fundamentals Aley • Secular tailwinds from global migration towards electrification C A N A D A • Supply constrained by depleting reserves, declining grades and long project development lead-times Gibraltar Gibraltar is a Large-Scale Co
Slide 4: Milestone Achievements Since 2020
Milestone Achievements Since 2020 Taseko has materially enhanced its business over the past three years FYE 20201 FYE 2023 (Pro Forma D&F & Sojitz) Consolidated Gibraltar minority interests Gibraltar Ownership 75% 100% ▪ Increased effective interest in Gibraltar by 33% ▪ Attractive acquisition mul
Slide 5: Acquisition of Remaining 12.5% of Gibraltar
Acquisition of Remaining 12.5% of Gibraltar Consolidation of remaining Gibraltar minority interest; supported by a flexible vendor financing package Transaction Overview Illustrative Payment Schedule2 (C$M) ▪ Taseko has entered into an agreement to purchase the remaining effective 12.5% minority int
Slide 6: Recap: Acquisition of 12.5% of Gibraltar from Sojitz in 2023
Recap: Acquisition of 12.5% of Gibraltar from Sojitz in 2023 Transaction increased Taseko’s attributable copper production by 17% Transaction Overview Illustrative Payment Schedule (C$M) ▪ On March 15, 2023, Taseko closed the acquisition of Sojitz’s effective 12.5% interest in Gibraltar, increasing
Slide 7: Bridge to Pro Forma 2023 Adjusted EBITDA
Bridge to Pro Forma 2023 Adjusted EBITDA Consolidation of Gibraltar minority interests results in a step change in Adjusted EBITDA As Reported Adjusted EBITDA (C$m) Adjusted EBITDA1 (C$m) Pro Forma 100% basisReal As Reported Adjusted EBITDA Sojitz Adjustments D&F Adjustments Figures grossed up from
Slide 8: Taseko Overview
Taseko Overview Taseko is a BC incorporated company, headquartered in Vancouver, Canada Pro Forma Capitalization2 Market Capitalization (22-Mar-24) US$588M (Pro Forma D&F Transaction) Pro Forma Adj. EBITDA US$168M3 Pro Forma Cash US$133M4 100%1 100% 100% Total Debt US$574M5 Cariboo Gibraltar Mines 1
Slide 9: Copper Price Outlook
Copper Price Outlook Copper price well-positioned to benefit from favourable long-term supply-demand dynamics Mt Supply-Demand Forecast (Mt ) ▪ Wood Mackenzie forecasts a potential supply deficit of 30 Base Case Production Capability Primary Demand ~3.3 Mt Cu by 2030 ▪ Favourable supply-demand dynam
Slide 10: Gibraltar Copper Mine – British Columbia
Gibraltar Copper Mine – British Columbia A foundation of stable cashflow MINE TYPE STAGE REPLACEMENT VALUE Open Pit – Cu/Mo Producing +US$1 billion1 1. Calculated using US$15,000 / ton capacity multiplied by capacity of 85,000 tons. 10
Slide 11: Gibraltar: Bedrock of Stable Cashflow
Gibraltar: Bedrock of Stable Cashflow Large-scale, steady-state efficient mine in an attractive phase of the mine plan Overview Production (Mlbs Cu) and C1 Cash Cost (US$/lb) ▪ Gibraltar is the second largest open-pit copper mine in Canada, with C1 Cash Cost (US$/lb) Grade (% Cu) a consistent annual
Slide 12: Gibraltar is One of Americas Most Efficient Open Pit Copper Mines
Gibraltar is One of Americas Most Efficient Open Pit Copper Mines One of the lowest cost (on a per tonne milled basis) operations in the Americas, underpinning Taseko’s commitment to operating excellence and strong cost discipline Americas Open Pit Operating Cost Benchmarking (US$/t Milled)1 $40.97
Slide 13: Strong Cost Discipline and Proven Resiliency Through Price Cycles
Strong Cost Discipline and Proven Resiliency Through Price Cycles Demonstrated ability to decrease unit costs in a lower copper price environment, supporting positive operating cash flow through-the-cycle ▪ Taseko has maintained positive operating cash flow during Annual Operating Cash Flow (US$m)1
Slide 14: Florence Copper Project – Arizona
Florence Copper Project – Arizona Pathway to a low-cost future MINE TYPE STAGE PROCESSING In-situ Leach Construction SX/EW PRODUCTION (PER YEAR) ESTIMATED CASH COSTS MINE LIFE 85Mlb (~39kt) Cu US$1.11/lb LOM 22 Years 14
Slide 15: Florence Project Overview
Florence Project Overview High-return, low-cost project with industry leading capital intensity Overview Project Economics2 Mining / Processing In-situ copper recovery / SX/EW processing plant ▪ Taseko has invested $325 million since 2014 to advance development of Florence Copper Planned Start-Up Q4
Slide 16: In-Situ Copper Recovery (“ISCR”)
In-Situ Copper Recovery (“ISCR”) How does in-situ copper recovery work? • A low pH solution is pumped through perforations at the bottom of the injection wells and into the copper-bearing mineralization. • A ring of four recovery wells surrounds each injection well, creating a “hydraulic gradient” t
Slide 17: One of the Greenest Sources of Copper in the US
One of the Greenest Sources of Copper in the US Benefits of In-situ Copper Recovery vs Conventional Open-pit mining 75% Other Benefits: • Low cost • Small environmental footprint (less than a square mile) Energy Carbon Water Use • Numerous site redevelopment Consumption Emissions (gal/lb Cu) opportu
Slide 18: Florence is Expected to Transform Taseko’s Profile
Florence is Expected to Transform Taseko’s Profile Florence is a 1st quartile cost asset, enhancing both resiliency and scale of Taseko Taseko Cost Curve Positioning (2026) c/lb 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 500 450 400 350 300 Gibraltar 250 Pro Forma 200 150 Florence 100 50 0
Slide 19: Florence Copper Project Construction Roadmap
Florence Copper Project Construction Roadmap Defined path to project completion with expected first cathode production in Q4 2025 Project Capex (US$M) ▪ Final UIC Permit from US EPA effective Contingency 2023 Q4 ▪ Begin site preparation, initial earthworks $26 SX/EW Plant $67 Site Infrastructure $33
Slide 20: Florence Copper Project Funding
Florence Copper Project Funding Line of sight towards delivering Florence, utilizing a prudent mix of capital sources Strategic Partnership with Mitsui & Co. (U.S.A) Inc. Florence Financing Plan (US$m) ▪ Provides US$50 million of construction financing • Initial US$50 million investment for 2.67% co
Slide 21: Florence Copper Project – Procurement
Florence Copper Project – Procurement SX Modules, EW Cell Covers, Electrolyte Filters HDPE Piping 21
Slide 22: Conservative Financial Policies
Conservative Financial Policies 22
Slide 23: Well-Positioned for Materially Improve Credit Metrics
Well-Positioned for Materially Improve Credit Metrics Enhanced credit metrics with the consolidation of Gibraltar and expected step change in leverage upon successful completion and ramp of Florence ▪ Taseko maintains reasonable leverage levels and balances LTM Adjusted EBITDA (US$m) capital needs t
Slide 24: Proactively Reducing Impact of Cu Price Volatility
Proactively Reducing Impact of Cu Price Volatility Hedging policy in place to reduce the short-term impact of a decline in the price of copper Defensive Hedging Strategy Historical Copper Hedging and Cu Production (Mlbs) ▪ Taseko’s hedging strategy is designed to secure a minimum price for a signifi
Slide 25: Financial Strategy
Financial Strategy ▪ Cash Flow Positive Through-the-Cycle • Demonstrated ability to adjust costs and protect margins during periods of low copper prices • Positive operating cash flow in each year since 2010 • Benefit from natural hedge through inverse correlation between the copper price and key in
Slide 26: Appendix
Appendix 26
Slide 27: A Proven Team of Mine Builders and Value Creators
A Proven Team of Mine Builders and Value Creators Key Senior Management Board of Directors Ron Thiessen – Chairman Peter Mitchell • President, CEO and Director of • Chartered Professional Accountant with over 35 Northern Dynasty Minerals. years of senior financial management experience. • Chartered
Slide 28: 2022 ESG Highlights: 360° of Value
2022 ESG Highlights: 360° of Value Environment Lowest CO, and energy intensity 17,930 —_— copper producer in North America [iz Florence Copper Project will be the Trees Planted ‘Shrubs Planted Grass Seeded 51,090 34 Hectares GIBRALTAR MINE 2022 . Biological Water Treatment eDNA Wildlife Study Esp Me
Slide 29: Adjusted EBITDA and Pro Forma Adjusted EBITDA Reconciliation
Adjusted EBITDA and Pro Forma Adjusted EBITDA Reconciliation Figures in C$M, Unless Otherwise Stated Year Ended Dec 31 2023 Quarter Ended 2021 2022 2023 March 31 June 30 September 30 December 31 Net Income / (Loss) $36 ($26) $83 $4 $10 $1 $67 Add: Depletion and amortization $67 $52 $57 $12 $16 $16 $
Slide 30: Pro Forma Net Debt Reconciliation
Pro Forma Net Debt Reconciliation Figures in C$M, Unless Otherwise Stated Year Ended Dec 31 2021 2022 2023 PF Cash Reconciliation Cash $237 $121 $97 FX Rate 1.2678 1.3544 1.3226 Cash (US$M) $187 $89 $73 Subsequent Financings - - $601 PF Cash (US$M) $187 $89 $133 PF Debt Reconciliation Revolving cred
Slide 31: Jurisdiction Exposure – 2022 Fraser Institute
Jurisdiction Exposure – 2022 Fraser Institute Taseko’s jurisdictional exposure sits on the 1st quartile of the Fraser Institute’s Investment Attractiveness Index • The Investment Attractiveness Index is a composite index that combines the Policy Perception Index and the Best Practices Mineral Potent
Slide 32: Appendix – NI 43-101 Compliance
Appendix – NI 43-101 Compliance • Unless stated otherwise, Taseko Mines Limited (the “Company”) has prepared the technical information in this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports, news
Slide 33: Thank You!
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