Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (July 2020)
30 slides from Taseko Mines's investor presentation, July 2020
Slide 1: Building North America's Low-Cost Multi-Asset Copper Producer
July 2020 BUILDING NORTH AMERICA’S LOW-COST MULTI-ASSET COPPER PRODUCER
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: Taseko in a Nutshell
Taseko in a Nutshell C A N A D A Building a multi-asset copper producer in the world’s top mining jurisdictions B R I T I S H C O L U M B I A GIBRALTAR PRODUCTION Highlights Gibraltar (75%) ALEY Copper-Molybdenum P&P Reserves: 563 million tons grading 0.25% Cu and 0.008% Mo NEW PROSPERITY Proven ope
Slide 4: Senior Management & Board
Senior Management & Board A proven team of mine builders and value creators Senior Management Russell Hallbauer Stuart McDonald Bryce Hamming CEO & Director President CFO P.Eng CPA CPA Board Professional engineer with 35 years’ experience, a Mining executive with 25 years of experience in Joined in
Slide 5: Gibraltar Copper Mine – British Columbia
Gibraltar Copper Mine – British Columbia A foundation of solid cashflow MINE TYPE Open Pit – Copper/Moly STAGE Producing PRODUCTION (LoM) ~135 Mlbs / ~60 Kt Cu CASH COSTS US$1.80-1.90/lb LoM Mine Life 18 Years Replacement Value +US$1 billion 5
Slide 6: Gibraltar Copper Mine
Gibraltar Copper Mine Proven sustainability through the cycle Gibraltar Copper Production Statistics Mill capacity has been expanded from 32,000 tons per (millions lbs, 100% basis) day (tpd) to a current rate of 85,000 tpd 180 160 Annual production has been at stable levels since Expansion Period Po
Slide 7: 2020 Operations / COVID-19
2020 Operations / COVID-19 In March 2020 Taseko implemented Health & Safety and Operational changes to respond to COVID-19 Gibraltar Cu Production • New procedures are in place to mitigate risk of COVID-19 impacting our 35 150 +5% employees and operations Range 28 130 • In response to lower copper p
Slide 8: Gibraltar Copper Mine
Gibraltar Copper Mine Leverage to the copper price Value Creation C1 Costs (US$/lb) Acquired Gibraltar for C$1 and invested over C$800 million into the asset Operating Margin $1.80 $1.70 $1.60 (C$, millions) In 2010, sold 25% of the mine for C$187 million to a Japanese $2.50 $92 $105 $118 consortium
Slide 9: Florence Copper Project – Arizona
Florence Copper Project – Arizona Pathway to a low-cost future MINE TYPE In-situ Leach STAGE Development PROCESSING SX/EW FUTURE PRODUCTION 85 Mlb / 40 Kt Cu LoM Mine Life 20 Years ESTIMATED CASH COSTS US$1.13/lb LOM* * Based on a Competent Persons Report dated November 6, 2019 prepared by Roscoe Po
Slide 10: Florence Copper Project
Florence Copper Project A Near Term, Low Cost Copper Producer Project Highlights Location Central Arizona near the town of Florence Over US$135 million was spent on the project by former Ownership 100% owners (Conoco, Magma Copper, BHP Copper), plus a 345 million tons grading 0.36% TCu (at a further
Slide 11: Florence Copper Project
Florence Copper Project Environmental advantages of In-situ Copper Recovery ISCR - a green production method for the green metal of the future No mine tailings or waste rock for long-term surface impoundment, minimal dust emissions No significant change to site topography No long-term use of land af
Slide 12: Florence Copper Project
Florence Copper Project A defined path forward to production 2017 2018 2019 2020 2021 Technical work PTF development First cathode Aiming to complete Construction results in significant and construction produced in April permitting in 2020 improvement in starts (~US$25m) 2019 Project financing proje
Slide 13: Florence Copper Project
Florence Copper Project Low Cost Growth Value Creation Sensitivity Cu Price NPV Post-Tax (US$/lb) (US$M) IRR -20% $2.48 $356 26% In 2014, Taseko acquired Florence for C$80 million, subsequently invested US$40 million into the asset and -10% $2.79 $512 34% will require US$227 million of pre-productio
Slide 14: Looking to the Future
Taseko Mines Looking to the Future 14
Slide 15: Looking to the Future
Looking to the Future Following a long, successful track record Highlights Short Term Focus Long Term Goals Proven operator with unique skill Maintain steady-state production To be the No.1 ranked mid-cap set and good reputation from the Gibraltar Mine North American Copper producer listed on the Lo
Slide 16: Why Invest in Taseko – The Valuation Case
Why Invest in Taseko – The Valuation Case Positioned for the next copper price cycle Taseko Valuation Waterfall $1,800 Value Creation $900 $1,600 $1,400 $1,325 Taseko is well positioned to benefit from an upswing $1,200 $340 in copper prices $1,000 Value will be created from existing production from
Slide 17: Appendix
Appendix Taseko
Slide 18: Capital Structure & Coverage
Capital Structure & Coverage Share Price (June 15, 2020) C$0.64 Analyst Coverage Target Price & Recommendation Liberum Buy C$1.96 (+220%) Jun ’20 52 Week High / Low C$0.80 / 0.28 BMO Buy C$0.90 (+45%) Jun ’20 Listed TSX:TKO / NYSE:TGB / LSE:TKO Cantor Fitzgerald Buy C$1.50 (+140%) Apr ’20 Shares Out
Slide 19: Listing on The London Stock Exchange
Listing on The London Stock Exchange LSE listed mining companies access an unique and globally diverse set of investors Metals & Mining Investors by Exchange & Geography 1,653 1,029 7% 1% 2% 4% Institutional Investors Of these investors are 35% in LSE listed NOT invested in TSX mining companies list
Slide 20: Gibraltar Copper Mine
Gibraltar Copper Mine One of the world’s most efficient open pit copper mines British Columbia is one of the world’s top mining jurisdictions, offering ready access to: ❖ Low cost power and Canadian Dollar operating costs ❖ A skilled and efficient workforce ❖ Modern infrastructure (power, rail, high
Slide 21: Building a Sustainable Business
Building a Sustainable Business Copper is itself a sustainable material, like our company Published first ESG Report, titled Our Contribution to Sustainability, in May 2020 Employees Governance Health & Safety Policy ❖ Corporate Governance Policy ❖ Commitment to diversified workforce ❖ Director Inde
Slide 22: Copper Fundamentals
Copper Fundamentals Constrained Supply = Looming Deficit The current copper project pipeline is not sufficient to meet forecasted demand Higher prices are likely needed to incentivize the additional investment required for new production Demand Expected to Grow Project Pipeline Thin (million metric
Slide 23: Copper Fundamentals
Copper Fundamentals Electric Vehicles – A Rapidly Emerging Market Copper is used throughout electric vehicles, charging stations and supporting infrastructure because of the metal’s durability, high conductivity and efficiency The increase in the electric vehicles market will significantly impact co
Slide 24: Yellowhead Copper-Gold Project
Yellowhead Copper-Gold Project Project Highlights Location 150km NE of Kamloops, British Columbia Advanced stage project acquired by Taseko in 2019 for Ownership 100% ~C$13 million in Taseko shares 4.4 billion pounds recoverable copper Located in close proximity to power, rail and highway Mineral Re
Slide 25: New Prosperity Copper-Gold Project
New Prosperity Copper-Gold Project Project Highlights Location 125 km SW of Williams Lake, British Columbia One of the Largest Copper-Gold porphyries in the world Ownership 100% Life of mine average annual production of ~540,000 7.7 million ounces recoverable gold Mineral Reserves gold equivalent oz
Slide 26: Aley Niobium Project
Aley Niobium Project Project Highlights Location 140 km north of Mackenzie, British Columbia The world's largest niobium deposit, outside the two Ownership 100% operating mines in Brazil (site covers ~433 km2) Mineral Reserves 84 million tonnes grading 0.50% Nb2O5 “Green" rare metal – metals like ni
Slide 27: 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 28: Appendix: Reserves & Resources – Gibraltar
Appendix Reserves & Resources Gibraltar Category Size Grade Recoverable Contained The resource and reserve estimation was completed (at 0.15% Cu cut-off) (M Tons) Metal Metal by Taseko and Gibraltar mine staff under the supervision of Richard Weymark, P.Eng., MBA, Chief Cu (%) Mo (%) Cu (B lbs) Cu (
Slide 29: Appendix: Reserves & Resources – Yellowhead
Appendix Reserves & Resources Yellowhead Category Size Grade Recoverable Contained Proven and Probable reserves are derived from Measured and (at 0.17% Cu cut- (M Tons) Copper Copper Indicated resources, respectively, that are contained within the final ultimate design and are above the stated coppe
Slide 30: Appendix: Reserves & Resources – New Prosperity
Appendix Reserves & Resources New Prosperity Category Size Grade Recoverable Metal Contained Metal The mineral resource and reserve estimations (effective date (M Tonnes) Au Cu Au Cu Nov. 2 2009) were completed by Taseko staff under the Au (g/t) Cu (%) (M oz) (B lb) (M oz) (B lb) supervision of Scot