Taseko Mines Limited · TSX:TKO
Taseko Mines — BMO Capital Markets 25th Global Metals & Mining Conference 2016
23 slides from Taseko Mines's conference presentation, March 2016
Slide 1: Cash Flowing Today and Positioned for the Next Cycle
Cash Flowing Today and Positioned for the Next Cycle BMO Capital Markets 25th Global Metals & Mining Conference 1
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: Well Positioned for Next Price Cycle
Well Positioned for Next Price Cycle Copper Price (US$/lb) Copper Production (millions lbs) $4.00 150 130 $3.00 110 136.5 142 $2.00 Production 90 121.4 70 89.8 $1.00 50 Jan‐12 Jan‐13 Jan‐14 Jan‐15 Jan‐16 2012 2013 2014 2015 ‐ Steady production with a declining cost profile Copper ‐ Experienced manag
Slide 4: Gibraltar Copper Mine
Gibraltar Copper Mine Long‐Life Mine • 750 million tons grading 0.272% copper equivalent* • Average strip ratio 1.9:1 • Recoverable copper of 3.3 billion pounds and 62 million pounds of molybdenum • Annual production of ~138 million pounds of copper and 2.6 million pounds of molybdenum • 23 years of
Slide 5: Gibraltar Operating Margin
Gibraltar Operating Margin Decreased Costs = Increased Operating Margin Even though copper price is lower, Gibraltar’s margin is better today than one year ago $3.25 $2.75 $2.25 Margin $1.75 $1.25 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15 Apr‐15 May‐15 Jun‐15 Jul‐15 Aug‐15 Sep‐15 Oct‐15 Nov‐15 Dec‐15 C1 Co
Slide 6: Recent Initiatives
Recent Initiatives Cost Savings 5 year off‐take agreement signed in Q4 2015 • below market treatment & refining rates New ocean freight contract signed in Q1 2016 TC/RC + ocean freight = US$7 million of savings in 2016 … and financial flexibility New US$ 70 million credit facility signed with RK Min
Slide 7: Gibraltar Operating Margin Sensitivity
Gibraltar Operating Margin Sensitivity Decreased Costs = Increased Operating Margin Cu Price (US$/lb) C1 Costs (US$/lb) $2.00 $2.30 $2.70 $1.80 $30 $75 $135 $1.73 $40 $85 $145 $1.63 $55 $100 $160 Based on LOM average copper production (105 Mlbs) and 2016 forecast C$ FX rate (0.70) 7
Slide 8: Shareholder Engagement
Shareholder Engagement Refuting Dissident’s Claims Taseko is open to engaging with all shareholders • Dissident made no good faith effort to engage with Taseko • Acquired 99.9% of their position one week prior to requisitioning meeting Taseko benefits from services it receives from Hunter Dickinson
Slide 9: Positioned for the Next Cycle
Positioned for the Next Cycle Taseko is poised for growth with improving copper prices Gibraltar Mine is operating at steady‐state with much improved cost structure Near term liquidity concerns have been addressed Highly leveraged to improved copper prices Development project pipeline provides furth
Slide 10: Appendix
Appendix 10
Slide 11: Diversified Asset Base
Diversified Asset Base Gibraltar (Cu‐Mo) World class, modernized, open pit mine 138 M lbs LOM average annual Aley (Nb) production 84 million tonne reserve @ 0.50% Nb2O5 23 Year Mine life Expected to produce 9 million kgs of Nb per year over its 24 year mine life New Prosperity (Cu‐Au) 13.3 million o
Slide 12: Copper Price Weakness but Fundamentals Improve
Copper Price Weakness but Fundamentals Improve Significant Curtailments/Disruptions in 2015 Large copper surplus projected for 2015/16 now declining due to: • Power issues affecting African production • Long‐term drought conditions and mismanagement of largest reservoir has led to severe shortage of
Slide 13: Fundamentals Gaining Strength
Fundamentals Gaining Strength Significant Curtailments/Disruptions in 2015 Press Release ‐ International Copper Study Group, Copper Market Forecast 2015‐2016 October 6, 2015 “…ICSG projections for 2015 indicate that the market should essentially remain balanced, while in 2016 ICSG forecasts a small
Slide 14: Fundamentals Gaining Strength
Fundamentals Gaining Strength Significant Curtailments/Disruptions in 2015 “More than 1.5 million metric tons of planned output this year has been lost for reasons ranging from rains and riots in Chile to lack of precipitation in Zambia and Papua New Guinea. Total mine output this year will be 18.9
Slide 15: Increasing Reserves
Increasing Reserves 2,100 25 Aley Florence Prosperity 20 Gibraltar Contained Copper Eq. Reserve (million tonnes) Cu Eq (billion Pounds) 1,400 15 10 700 5 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 15
Slide 16: Gibraltar Copper Mine
Gibraltar Copper Mine Canada’s Second Largest Open‐Pit Copper Mine Location: 65 km north of Williams Lake, British Columbia Ownership: 75% 3.3 billion pounds recoverable copper Mineral Reserves: 62 million pounds recoverable molybdenum Reserves Update (Dec 2014: 749m tons at 0.272% copper equivalent
Slide 17: Florence Copper Project
Florence Copper Project A Near Term, Low Cost Copper Producer Location: Central Arizona near the community of Florence Ownership: 100% 340 million tons grading 0.358% TCu (at a 0.05% total copper Mineral Reserves: cutoff) containing 2.42 billion pounds of copper Mine Type: In‐situ copper recovery Mi
Slide 18: Florence Copper Project
Florence Copper Project Projected Commercial Production Profile Prefeasibility Study Highlights Initial capital cost of US$210 million Payback of capital 2.6 years (pre‐tax) Cash operating cost of US$0.80/pound Total estimated operating cost of US $1.11/pound Average annual copper production of 75 m
Slide 19: Florence In-Situ Recovery Process
Florence In‐Situ Recovery Process Injection and recovery wells are drilled deep into the bedrock where the oxide copper mineralization is Wells are concrete encased and sealed to protect water quality Low pH solution, similar in strength to household vinegar or lemon juice, is pumped under low press
Slide 20: Aley Niobium Project
Aley Niobium Project Accretive Development Opportunity Location: Northern British Columbia Ownership: 100% Mine Type: Open Pit, 10,000 tpd mill throughput Mine Life: 24 years Project Highlights Proven and probable reserves of 84 million tonnes grading 0.50% Nb2O5 announced in September 2014 Pre‐tax
Slide 21: Experienced Management Team
Experienced Management Team Russell Hallbauer, P. Eng ‐ President & CEO and Director – Mr. Hallbauer is a professional engineer with over 35 years of mining experience. He has a strong background in open pit and underground mining, overseeing operating joint ventures and revitalizing mines to profit
Slide 22: Corporate Information
Corporate Information Cash on Hand (12/31/15): C$76 million LT Debt (12/31/15) : C$305 million Listed: TSX; TKO / NYSE MKT; TGB Shares Outstanding: 221.8 million Market Capitalization: ~C$100 million 52 Week High/Low: C$1.22/C$0.35; US$0.94/US$0.25 Analyst Coverage: Scotia Capital, Raymond James, Na
Slide 23: Reserves & Resources
Reserves & Resources New Prosperity The mineral resource and reserve estimations were completed by Mineral Reserves @ C$5.50 NSR/t Cut-Off1 Taseko staff under the supervision of Scott Jones, P.Eng., Vice- Grade Recoverable Metal Contained Metal President, Engineering and a Qualified Person under Nat
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