Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (September 2015)
21 slides from Taseko Mines's investor presentation, September 2015
Slide 1: Building Value Through Operating and Developing Major Mining Projects
Building Value Through Operating and Developing Major Mining Projects September 2015 1
Slide 2: Forward Looking Statements
Forward ForwardLooking Looking Statements Statements Some of the statements contained in the following material are "forward‐looking Some of the statements". Allstatements statementscontained in theother in this release, following thanmaterial statementsare of"forward‐looking historical statements".
Slide 3: Taseko Advantage
Taseko Advantage Major Producing Gibraltar is the second largest open pit copper mine in Canada and fourth Copper Mine Provides largest in North America Strong Cash Flow LOM average production of 138 million lbs of copper and 2.6 million lbs of molybdenum (100% basis) Large Reserve of 3.3 billion lb
Slide 4: 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 24 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 5: Cash Flow Stability
Stability • Steady‐state production • Modern, world class mine • Low geopolitical risk • Copper price decline Production significantly offset by C$ • Fundamentals continue to support a balanced market Copper Cash Operating Price Costs Flow • Decreasing operating costs • New long‐term mine plan to pr
Slide 6: 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 7: Gibraltar Copper Mine
Gibraltar Copper Mine 7
Slide 8: Gibraltar Copper Mine: Updated, Long-Term Mine Plan
Gibraltar Copper Mine Updated, Long‐Term Mine Plan Highlights of the mine plan: • 749 million tons grading 0.272% copper equivalent*. • 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 molybde
Slide 9: Looking Forward: Improving Production
Looking Forward Improving Production Mill • Operating above design capacity – YTD throughput of 86,400 tons per day • Copper recoveries have increased by 5% since Q4/14 Average Tons Per Day 95,000 85,000 75,000 65,000 55,000 Q1 14 Q2 14 Q3 14 Q4 14 January February March April May June 9
Slide 10: Looking Forward: Improving Production
Looking Forward Improving Production Operating Costs • Cost per ton milled down ~20% in last six months as spending decreased • C1 operating costs per pound declined by ~30% (from Q4) to US$1.97 in Q2 Cost Per Ton Milled $13 $11 $9 $7 $5 $3 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 10
Slide 11: Gibraltar Copper Mine: Sensitivity to Foreign Exchange
Gibraltar Copper Mine Sensitivity to Foreign Exchange $4.00 0.95 $3.00 Copper Price ($/lb) C$/US$ 0.85 $2.00 US$ Copper C$ Copper C$/US$ $1.00 0.75 Jan‐14 Apr‐14 Jul‐14 Oct‐14 Jan‐15 Apr‐15 Jul‐15 US$ drop in copper price largely offset by declining C$ C$ price of copper is at same level as a year a
Slide 12: 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 13: 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 14: 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 15: Net Asset Value – Focused on Value Creation
Net Asset Value – Focused on Value Creation 2015 Gibraltar $16.00 Reserve Update Sale of 25% of Gibraltar Federal Government for $190 million Rejection of Prosperity Curis Resources Acquisition $12.00 BC Provincial Approval Successful Exploration for Prosperity Program at Aley 84 Million Tonne 830 M
Slide 16: Appendix
Appendix 16
Slide 17: Corporate Information
Corporate Information Cash on Hand (6/30/15): C$74.9 million LT Debt (6/30/15) : C$281 million ($246M Sr Note + C$35M Capital Lease/Equip. Loan) Listed: TSX; TKO / NYSE MKT; TGB Shares Outstanding: 221.8 million Market Capitalization: ~C$140 million 52 Week High/Low: C$2.39/C$0.51; US$2.21/US$0.32 A
Slide 18: 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 19: Increasing Reserves
Increasing Reserves 2,100 25 Aley Florence Prosperity 20 Gribraltar 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 19
Slide 20: 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 21: 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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