Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (November 2022)
33 slides from Taseko Mines's investor presentation, November 2022
Slide 1: Building North America's Low-Cost Multi-Asset Copper Producer
BUILDING NORTH AMERICA’S LOW-COST MULTI-ASSET COPPER PRODUCER November 2022
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and forward-looking information (collectively referred to as “forward-looking statements”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Legislation Reform Act of 1995, Sectio
Slide 3: Taseko – Investment Highlights
Taseko – Investment Highlights Building a multi-asset copper producer in the world’s top mining jurisdictions C A N A D A B R I T I S H C O L U M B I A GIBRALTAR Strong Copper YELLOWHEAD Commitment to Strong Fundamentals ALEY Environmental, Social & Proven Team of Mine NEW PROSPERITY Governance Perf
Slide 4: Capital Structure & Coverage
Capital Structure & Coverage Share Price C$1.80 / US$1.35 Analyst Coverage Target Price & Recommendation 52 Week High / Low C$3.00 / C$1.15 Buy C$2.25 (+30%) Nov ’22 Listed TSX:TKO / NYSE:TGB / LSE:TKO Buy C$2.00 (+20%) Nov ’22 Buy C$2.50 (+45%) Nov ’22 Shares Outstanding* 286M Hold C$1.90 (+10%) No
Slide 5: Copper Price Outlook
Copper Price Outlook $6.00 Copper price decline driven by: US$ Cu Price Concerns about global economy C$ Cu Price Chinese economic data $5.00 Rising interest rates US$ strength Ave. US$4.10 Offset by favourable long-term supply-demand $4.00 dynamics: ▪ Maturing global supply base and lack of project
Slide 6: Copper Price Outlook
Copper Price Outlook Highlights from S&P Global Copper Study (July 2022) Copper – the “metal of electrification” – is essential to all energy transition plans Copper demand is projected to grow from 25 million metric tons (MMt) today to about 50 MMt by 2035, a record-high level that will be sustaine
Slide 7: Electric Vehicles – A Rapidly Emerging Market
Electric Vehicles – A Rapidly Emerging Market Copper is Essential to Electric Vehicle Technology Copper is used throughout electric vehicles, charging stations and supporting infrastructure because of the metal’s Conventional Car 18 to 49 lbs 85 lbs durability, high conductivity and efficiency Hybri
Slide 8: Gibraltar Copper Mine – British Columbia
Gibraltar Copper Mine – British Columbia A FOUNDATION OF STABLE CASHFLOW MINE TYPE STAGE PRODUCTION (LoM) Open Pit – Cu/Mo Producing 130Mlbs (~60kt Cu) CASH COSTS (LOM) MINE LIFE REPLACEMENT VALUE US$2.00/lb 23 Years +US$1 billion1 1. Calculated using US$15,000 / ton capacity multiplied by capacity
Slide 9: Gibraltar Copper Mine – Large-Scale, Steady-State Mine
Gibraltar Copper Mine – Large-Scale, Steady-State Mine Value Creation Acquired Gibraltar in 1999 for $1 Restarted the mine in 2004 Between 2006 and 2013, invested C$800 million to expand and modernize the mine to 85,000 tons per day In 2010, sold 25% of the mine for C$187 million to a Japanese conso
Slide 10: Gibraltar Mine – Cash Flow Growth from Stable Mining Operation
Gibraltar Mine – Cash Flow Growth from Stable Mining Operation Leverage to copper has resulted in strong earnings growth and cash flow generation Gibraltar is a foundation of stable cash flow for the Company throughout the copper price cycle LTM Adjusted EBITDA $250 $5.00 Taseko has maintained posit
Slide 11: Florence Copper Project - Arizona
Florence Copper Project - Arizona PATHWAY TO A LOW-COST FUTURE MINE TYPE STAGE PROCESSING In-situ Leach Development SX/EW PRODUCTION (per year) ESTIMATED CASH COSTS MINE LIFE 85Mlb (~40kt) Cu US$1.10/lb LOM 21 Years 11
Slide 12: Florence Copper Project – A Near Term, Low Cost Copper Project
Florence Copper Project – A Near Term, Low Cost Copper Project Project Highlights Over US$135 million was spent on the project by former owners (Conoco, Magma Copper, BHP Copper) Taseko has invested a further $165M since 2014, including US$25M to build the PTF All major power, transportation, road a
Slide 13: In-Situ Copper Recovery ("ISCR")
In-Situ Copper Recovery (“ISCR”) How does in-situ copper recovery work? Benefits of ISCR Fresh at er se nergy Consum ption Carbon missions (gal/lb Cu) (k h/lb Cu) (kg C /lb Cu) 2 3 3 3 2 OTHER BENEFITS: Low cost 24 April 2019 Small environmental footprint (less than a square mile) First Numerous sit
Slide 14: Florence Copper Project – A Defined Path to Production
Florence Copper Project – A Defined Path to Production Two Phase Development Approach Phase 1: Production Test Facility PTF development and construction starts (~US$25M) The PTF consisted of a wellfield and SX/EW plant Wellfield & SX/EW plant commissioned in Q3, 2018 ▪ 24 wells: 4 injection wells, 9
Slide 15: Florence Copper Project – Construction Schedule
Florence Copper Project – Construction Schedule Schedule of Key Components of Construction Simplified construction schedule following issuance of final UIC permit Engineering Procurement Final UIC Permit Preproduction Well Development SX/EW Construction Wellfield Infrastructure Leaching Operations O
Slide 16: Looking to the Future
TASEKO MINES LOOKING TO THE FUTURE 16
Slide 17: Yellowhead Copper Project
Yellowhead Copper Project Project Highlights Advanced stage project acquired by Taseko in 2019 for ~C$13 million in Taseko shares Located in close proximity to power, rail and highway In January 2020, Taseko announced improved economics and new 820M tonne Reserve estimate Technical Study Highlights
Slide 18: New Prosperity Gold-Copper Project
New Prosperity Gold-Copper Project Project Highlights One of the Largest Copper-Gold porphyries in the world Life of mine average annual production of ~540,000 gold equivalent oz Provincial Authorization (Environment Assessment Certificate) in place 5-year production profile Gold (ounces) Copper (M
Slide 19: Taseko Copper Reserves
Taseko Copper Reserves Significant Value in P&P Copper Reserves Nearly 15 billion pounds of copper in reserves Including gold in reserves, over 19 billion pounds of copper equivalent 15 30 New Prosperity (Lbs / Market Capitalization) 10 20 (Billions lbs Copper) Yellowhead 5 10 Florence Gibraltar 0 0
Slide 20: Why Invest in Taseko – The Valuation Case
Why Invest in Taseko – The Valuation Case $2,500 Taseko Valuation Waterfall Significant gap between asset NPV and market cap $850 ❖ Based on US$3.50/lb copper for Gibraltar and US$3.00/lb for $2,000 $1,594 Florence, and not including Yellowhead, New Prosperity or Aley $1,500 $356 $1,100 Near-term an
Slide 21: Appendix
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Slide 22: Improved Credit Profile
Improved Credit Profile Substantial improvement in leverage metrics on the back of higher copper prices, Gibraltar mine plan optimization and enhanced liquidity Operational Improvement Taseko maintains reasonable leverage levels and balances LTM Adjusted EBITDA capital needs through a combination of
Slide 23: Taseko Assets vs. Global Open-Pit Operations
Taseko Assets vs. Global Open-Pit Operations CO2 Intensity to Decline with Startup of Florence Copper Source: Skarn Associates Note Represents Florence Copper at steady-state operations 23
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 Historical Copper Hedging impact of a decline in the price of copper and Cu Production (Mlbs) Defensive Hedging Strategy Taseko’s hedging strategy is designed to secure a minimum price for a significa
Slide 25: 2022 ESG Highlights
2022 ESG Highlights Environment SCOPE 1 SCOPE 2 12 Hectares 1.97 0.09 GIBRALTAR CARBON INTENSITY (t CO2e/t CuEq) (t CO2e/t CuEq) LAND RECLAIMED AT GIBRALTAR 3rd LARGEST COPPER PRODUCER IN CANADA FLORENCE COPPER PROJECT INITIATED PERMITTING PROCESS FOR WATER TREATMENT WILL BE THE LOWEST CO2 AND PERMI
Slide 26: A Proven Team of Mine Builders and Value Creators
A Proven Team of Mine Builders and Value Creators 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 Prof
Slide 27: Aley Niobium Project
Aley Niobium Project Project Highlights The world's largest niobium deposit, outside the two operating mines in Brazil (site covers ~433 km2) “Green" rare metal – metals like niobium, are the heart of green technology, such as wind turbines and electric vehicles Taseko acquired the project in 2007 f
Slide 28: Jurisdiction Exposure – 2019 Fraser Institute
Jurisdiction Exposure – 2019 Fraser Institute Taseko’s 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 Potential Index, weight
Slide 29: Appendix – Reserves & Resources
Appendix – Reserves & Resources Gibraltar Florence Recoverable Contained Recoverable Contained Category Grade Category Size Grade Size Metal1 Metal Metal Metal (at 0.15% Cu cut-off) (M Tons) (at 0.05% TCu cut-off) (M Tons) Cu (%) Mo (%) Cu (B lbs) Cu (B lbs) (%TCu) Cu (B lbs) Cu (B lbs) Proven 509 0
Slide 30: Appendix – Reserves & Resources
Appendix – Reserves & Resources Yellowhead Aley Recoverable Contained Recoverable Contained Category Grade Grade Size Copper Copper Size Metal Metal Category (at 0.17% Cu cut-off) (M Tons) (M Tonnes) Cu (%) Au (g/t) Ag (g/t) Cu Eq (%)* (B lbs) (B lbs) Nb205 (%) Nb (M kg) Nb (M kg) Proven 458 0.29 0.
Slide 31: Appendix – Reserves & Resources
Appendix – Reserves & Resources New Prosperity Grade Recoverable Metal Contained Metal Size Category (M Tonnes) Au Cu Au Cu Au (g/t) Cu (%) (M oz) (B lb) (M oz) (B lb) Proven 481 0.46 0.26 5.0 2.4 7.1 2.8 Probable 350 0.35 0.18 2.7 1.2 3.9 1.4 Total P&P Reserves 831 0.41 0.23 7.7 3.6 11.0 4.2 (at C$
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 Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports and news re
Slide 33: Tasekomines.com
Taseko)> Tasekomines.com f & '° &