Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (January 2021)
31 slides from Taseko Mines's investor presentation, January 2021
Slide 1: Building North America's Low-Cost Multi-Asset Copper Producer
BUILDING NORTH AMERICA’S LOW-COST MULTI-ASSET COPPER PRODUCER January 2021
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: Presenting Management Team
Presenting Management Team Stuart McDonald Bryce Hamming Brian Bergot President CFO Vice President, IR CPA CFA, CPA Mr. Hamming is a financial executive with over Mr. McDonald is a mining executive with 25 20 years experience in corporate finance, Mr. Bergot was appointed Vice President, years of ex
Slide 4: Taseko Overview
Taseko Overview Taseko is a BC incorporated company, headquartered in Vancouver, Canada C A N A D A Incorporated in 1966, publicly traded on the TSX, NYSE American and LSE B R I T I S H C O L U M B I A Net Debt3 US$223M GIBRALTAR Market Capitalization2 US$412M YELLOWHEAD Enterprise Value2,3 US$635M
Slide 5: Copper Price Outlook
Copper Price Outlook Cu Prices (US$/lb) – Historical and Forward Curve1 Copper prices declined in H1 2020 due to COVID-19 but have $3.75 since rebounded to multi-year highs; all time highs denominated $3.67 $3.67 $3.68 $3.50 $3.67 $3.66 in C$ $3.25 Favourable long-term supply-demand dynamics $3.00 ❖
Slide 6: Taseko Investment Highlights
Taseko Investment Highlights Building a multi-asset copper producer in the world’s top mining jurisdictions Gibraltar is a Large-Scale Copper Mine with Proven Through-the-Cycle Sustainability • 2nd largest open pit copper mine in Canada with a remaining mine life of 18 years • Continuously operated
Slide 7: Gibraltar Copper Mine – British Columbia
Gibraltar Copper Mine – British Columbia A foundation of stable cashflow MINE TYPE Open Pit – Copper/Moly STAGE Producing PRODUCTION (LoM) 136Mlbs (~60kt Cu) CASH COSTS US$1.77/lb LTM Mine Life 18 Years Replacement Value +US$1 billion1 1. Calculated using US$15,000 / ton capacity multiplied by capac
Slide 8: Gibraltar Copper Mine
Gibraltar Copper Mine Large-Scale, Steady-State Mine Value Creation Acquired Gibraltar in 1999 for $1 Restarted the mine in 2005 Between 2006 and 2013, invested US$640 million1 to expand and modernize the mine to 85,000 tons per day In 2010, sold 25% of the mine for US$176 million2 to a Japanese con
Slide 9: 2020 Operations / COVID-19
2020 Operations / COVID-19 Demonstrates Taseko’s operational flexibility and ability to adapt In March 2020 Taseko began implementing Health & Safety and Gibraltar Copper Production and Costs Operational changes to respond to COVID-19 (Mlbs, 100% basis) $3.25 Gibraltar has not experienced any shut d
Slide 10: Gibraltar Copper Mine
Gibraltar Copper Mine One of the Americas most efficient open pit copper mines On a cost per tonne milled basis, Gibraltar is one of the Lowest Cost Open Pit Copper Mines in the Americas (US$/t milled) 1 lowest cost operations in the world. This is achieved by: Chapada $5.8/t ❖ A skilled and efficie
Slide 11: Florence Copper Project - Arizona
Florence Copper Project - Arizona MINE TYPE Pathway to a In-situ Leach STAGE low-cost future Development PROCESSING SX/EW PRODUCTION 85Mlb (~40kt) Cu / year ESTIMATED CASH COSTS US$0.90/lb LOM Mine Life 21 Years 11
Slide 12: Florence Copper Project
Florence Copper Project A near term, low cost copper project Location Central Arizona near the town of Florence Project Highlights Ownership 100% Over US$135 million was spent on the project by former owners (Conoco, Magma Copper, BHP Copper) 345 million tons grading 0.36% TCu (at a 0.05% total Mine
Slide 13: In-Situ Copper Recovery ("ISCR")
In-Situ Copper Recovery (“ISCR”) How does in-situ copper recovery work? Injection and recovery wells are drilled deep into the bedrock #1 where the oxide copper ore is situated Wells are concrete encased and sealed to protect water #2 quality Highly diluted acid (99.5% water, 0.5% acid) is pumped un
Slide 14: Environmental Advantages of In-Situ Copper Recovery
Environmental Advantages of In-Situ Copper Recovery ISCR - a green production method for the green metal of the future Illustrative Environmental Advantages of Florence ISCR Project1 Small Environmental Footprint Conventional Open Pit Mine Florence ISCR Numerous Site Redevelopment 41 Opportunities L
Slide 15: Florence Copper Project
Florence Copper Project A defined path to production 2017 2018 2019 2020 2021 2022 Technical work results in PTF development First cathode produced Completed PTF Aiming to complete First production from significant improvement in and construction starts in April 2019 production phase permitting in H
Slide 16: Florence Copper Project
Florence Copper Project Capital efficient, high return growth project Cu Price Pre-Tax NPV Pre-Tax Sensitivity (US$/lb) (US$M) IRR Value Creation -15% $2.55 $606 33% -10% $2.70 $709 37% In 2014, Taseko acquired Florence Copper for US$73M1 and invested -5% $2.85 $812 40% US$80M in the project to date
Slide 17: Florence Copper Project
Florence Copper Project Prudent funding plan Illustrative Financing Plan (US$M) As 100% owner, Taseko has a number of options available to fund the commercial operation of Florence Options include excess cash and cash flow from $1,280 2 Gibraltar, sale of a joint venture interest in Florence, royalt
Slide 18: Taseko Mines Conservative Financial Policies
Taseko Mines Conservative Financial Policies 18
Slide 19: Resilient Through Copper Price Downturns
Resilient Through Copper Price Downturns Positive operating cash flow generation through the cycle Taseko has been able to maintain positive operating cash flow $200 $4.50 throughout extended periods of weak copper prices through stringent cost management practices and adjustments to mine plan $160
Slide 20: Improved Credit Profile
Improved Credit Profile Substantial improvement in leverage metrics on the back of higher copper prices, Gibraltar mine plan optimization and enhanced liquidity Operational Improvement Taseko maintains reasonable leverage levels and balances LTM Adjusted EBITDA (US$M)1 capital needs through a combin
Slide 21: Financial Strategy
Financial Strategy Cash Flow Positive Throughout the Cycle ❖ Ability to control costs and take operational measures during periods of depressed copper prices ❖ Positive operating cash flow in each year since 2010 Strong Financial Liquidity ❖ Cash on hand of US$67M ❖ Equity issuance in November impro
Slide 22: 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 significa
Slide 23: A Proven Team of Mine Builders and Value Creators
A Proven Team of Mine Builders and Value Creators Senior Management Russell Hallbauer Stuart McDonald Bryce Hamming CEO & Director President CFO P.Eng CPA CFA, CPA Board Professional engineer with 35 years’ Mining executive with 25 years of experience in Joined in 2018, with over 20 years experience
Slide 24: 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 25: Taseko Mines Looking to the Future
Taseko Mines Looking to the Future 25
Slide 26: Looking to the Future
Looking to the Future Following a long, successful track record Highlights Short Term Focus Long Term Goals Long life, low cost, large scale assets Maintain steady-state production from the To be a top ranked mid-cap North with clear pathway to significant Gibraltar Mine American Copper Producer pro
Slide 27: Appendix
Appendix 27
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, weig
Slide 29: Adjusted EBITDA and Net Debt Reconciliation
Appendix Adjusted EBITDA and Net Debt Reconciliation NINE MONTHS ENDED LAST TWELVE MONTHS YEARS ENDED DECEMBER 31 (CDN$ dollars in thousands) SEPTEMBER 30 March 31 June 30 September 30 2017 2018 2019 2019 2020 2020 2020 2020 Net income (loss) C$34,262 (C$35,774) (C$53,382) (C$43,451) (C$29,218) (C$9
Slide 30: Reserves & Resources
Appendix Reserves & Resources Gibraltar Florence Category Size Grade Recoverable Contained Category Size Grade Recoverable Metal Contained Metal (at 0.15% Cu cut-off) (M Tons) Metal1 Metal (at 0.05% TCu cut-off) (M Tons) (%TCu) Cu (B lbs) Cu (B lbs) Cu (%) Mo (%) Cu (B lbs) Cu (B lbs) Probable Reser
Slide 31: 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