Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (November 2010)
25 slides from Taseko Mines's investor presentation, November 2010
Slide 1: Setting the New Standard in Porphyry Development
Setting the New Standard in Porphyry Development November 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements contained in the following material are "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated mineral resource and reserve quantities, grades and contained metal, and possible
Slide 3: The Taseko Advantage
The Taseko Advantage Financial • ~$200 million cash on hand ($1/share) Strength • Significant Cash flow at current metal prices • Copper production increasing by 200% and additional Growth 300,000 ounces of gold production • Diversifying into major gold producer • Assets located in secure political
Slide 4: Assets Located in Central British Columbia
Assets Located in Central British Columbia Located Near British • Main transportation corridor Columbia (Road & Rail) • Services (Hydro Electric) Aley (Niobium) Large Resource-Based Communities • Williams Lake • Quesnel Gibraltar Harmony (Copper / Moly) • Prince George (Gold) Williams Lake • 100 Mil
Slide 5: Financial Strength: Strong Balance Sheet
Financial Strength Strong Balance Sheet $700 $600 $500 (C$, millions) $400 $300 $200 $100 $0 2007 2008 2009 2010 At June 30 Cash and Equivalents Total Assets Shareholders' Equity
Slide 6: Financial Strength
Financial Strength Investment Summary Top 40 Taseko Mining Companies (%) 2007 2008 2009 2010* 2009 Net Profit Margin 44 28 14 27 15 Adjusted EBITDA Margin 41 29 17 42 33 Return on Equity 29 15 6 24 12 Return on Capital Employed 43 19 8 14 9 Operating Cash Flow Margin 39 25 - 15 n/a • First half of 2
Slide 7: Opportunity for Growth
Share Price Performance Opportunity for Growth Market Capitalization* (US $ mm) Total Enterprise Value* (US $ mm) $7,000 $7,000 $6,587 $6,221 $6,000 $6,000 $5,000 $5,000 T E V ($ m m ) C $ , m illio n s $4,029 $3,899 $4,000 $4,000 $3,382 $3,071 $3,150 $2,961 $3,000 $2,685 $3,000 $2,360 $2,211 $2,277
Slide 8: Prosperity Gold-Copper Project
Growth Prosperity Gold-Copper Project Location: 125 km south-west of Williams Lake, BC Ownership: 100% 7.7 million ounces recoverable gold Mineral Reserves: 3.6 billion pounds recoverable copper Mine Type: Open-pit, 70,000 tpd mill throughput Estimated Annual 245,000 ounces gold LOM Production: 110
Slide 9: Prosperity Gold-Copper Project: Total Au Resources
Total Au Resources (MM ozs) - 2 4 6 8 10 12 14 16 18 20 94M Pebble - Northern Dynasty Minerals 44M Reko Diq - Antofagasta Growth Oyu Tolgoi - Ivanhoe Mines 32M Tampakan - Xstrata Lookout Hill - Ivanhoe Mines Salobo - Vale SA Prosperity - Taseko Mines Bougainville - Rio Tinto Frieda River - Xstrata A
Slide 10: Prosperity: An Undervalued Project
Growth Prosperity Gold-Copper Project An Undervalued Project • Taseko market capitalization does not reflect the full value of Prosperity By comparison… El Morro Prosperity (70% attrib. to Goldcorp) Capex C$815 million C$1,300 million 7.7 M ozs gold 4.7 M ozs gold P&P Reserves 3.6 B lbs copper 4.0 B
Slide 11: Prosperity Gold-Copper Project Economics
Growth Prosperity Gold-Copper Project Economics Copper – US$/lb • Feasibility Study complete $2.25 $2.75 $3.25 $3.75 1 $1,300 $1,900 $2,500 $3,100 • Capital cost of C$815* million $775 2 21% 27% 33% 39% 3 3.5 3.0 2.5 2.5 • Operating cost of C$7.50 per tonne 1 $1,600 $2,200 $2,800 $3,400 milled $875
Slide 12: British Columbia/Canadian Permitting
Growth Prosperity Gold-Copper Project British Columbia/Canadian Permitting Red Chris British (copper/gold) • The Province granted Prosperity EA Columbia Certificate in January 2010 • Four other similar projects have Galore Creek (copper/gold) received EA Certificates and permits in recent history Mt
Slide 13: Prosperity Gold-Copper Project Timeline
Growth Prosperity Gold-Copper Project Timeline Feasibility Reserve Update Environmental Assessment Review Provincial EA Certificate Granted Permitting Permit Applications Submitted Federal EA Certificate Granted Project Financing Order Long-Lead Equipment Site Prep Construction Commissioning 2006 20
Slide 14: Prosperity Financing Sources
Growth Prosperity Gold-Copper Project Financing Sources $900 $165 $600 C$, millions $350 $650 $815 $300 $100 $200 $0 Cash on Hand Cash Flow Sale of Gold Total Cash Financing Prosperity from Gibraltar Stream Available Requirements Capital Costs* Financing Options • Project finance debt • Sale of offt
Slide 15: Gold Stream Agreement
Growth Prosperity Gold-Copper Project Gold Stream Agreement • Franco-Nevada will have right to purchase 22% of gold production for $400/oz (inflation adjusted) • Taseko will receive US$350 million plus 2 million Franco-Nevada 2017 share warrants Recoverable Metal Taseko will receive ~45% of Au 7.7 m
Slide 16: Harmony Gold Project
Growth Harmony Gold Project Haida Gwaii - Graham Island Location: Designated Mineral Development Zone Ownership: 100% 3 million ounces gold Harmony Measured & Indicated Resources*: 65 million tonnes @ 1.52 grams Au/tonne Inferred Resources*: 21 million tonnes @ 1.04 grams Au/tonne Scoping Study, com
Slide 17: Asset Stability: Gibraltar Copper Mine
Asset Stability Gibraltar Copper Mine Location: 65 km north of Williams Lake, BC Ownership: 75% Mineral Reserves: 2.7 billion pounds recoverable copper under review 30 million pounds recoverable molybdenum Mine Type: Open-pit, 55,000 tpd mill throughput Estimated Annual 115 million pounds copper LOM
Slide 18: Gibraltar Milled Tons Per Operating Day
Asset Stability Gibraltar Copper Mine Milled Tons Per Operating Day Q3 copper production SAG Mill Construction 25.7 million lbs Complete 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10
Slide 19: Gibraltar: Long-Term, Mid-Cost Producer
Asset Stability Gibraltar Copper Mine Long-Term, Mid-Cost Producer $4.00 1 Kinserve 13 Las Cruces 25 Grasberg 37 Morenci 49 Minto 2 Cerro Verde 14 Franke 26 Tenke Fungurume 38 Duck Pond 50 Sossego/118 3 Morrison 15 Escondida 27 Tenke Fungurume 39 Ok Tedi 51 Lomas Bayas Co-Product Cash Cost (US$/lb)
Slide 20: Copper Production Growth 2010-2014
Growth Profile Copper Production Growth 2010 - 2014 240 300 200 250 (Au - ozs, thousands) 160 200 (Cu - lbs, millions) Prosperity Prosperity 120 150 80 100 Prosperity Prosperity Gibraltar Gibraltar Gibraltar Gibraltar Gibraltar Gibraltar 40 50 0 0 2009 2010 2011 2012 2013 2014 • By 2013, copper prod
Slide 21: Summary of Highlights
Summary of Highlights Key Accomplishments January 2010 • Received British Columbia Environmental Assessment Certificate for Prosperity March 2010 • Repaid entire US$50 million long-term credit facility • Completed transaction to sell 25% Gibraltar Mine for ~$187 million May 2010 • Signed gold stream
Slide 22: Investment Summary: Share Structure
Investment Summary Share Structure Cash on Hand: ~C$200 Listed: TSX; TKO / NYSE Amex; TGB S&P/TSX Composite : S&P/TSX Small Cap Indices: S&P/TSX Global Mining : S&P/TSX Global Base Metals Shares Outstanding: 186.8 million Market Capitalization: C$1.2 billion 52 Week High/Low: C$7.27/C$2.79 ; US$7.23
Slide 23: Experienced Management Team
Experienced Management Team Russell Hallbauer, President & CEO and Director -Mr. Hallbauer is a professional engineer with over 30 years of mining experience. He has a strong background in copper mining, overseeing operating joint ventures and revitalizing mines to profitability. John McManus, Senio
Slide 24: Experienced Management Team
Experienced Management Team Robert Rotzinger, General Manager, Projects – Robert is a mechanical engineer and has worked at the Gibraltar Mine since 1994 where he has taken on increasingly senior positions. He has been tasked with the management of diverse engineering, environmental, metallurgical a
Slide 25: Reserves and Resources
Reserves and Resources Prosperity Mineral Reserves @ C$5.50 NSR/t Cut-Off1 Size Grade Recoverable Metal Contained Metal M Tonnes Au (g/t) Cu (%) Au (M oz) Cu (B lb) Au (M oz) Cu (B lb) P&P reserves 830 0.41 0.23 7.7 3.6 11.0 4.2 M&I Resources 181 0.40 0.30 - - 2.3 1.1 Total 1,011 0.41 0.24 - - 13.3