Taseko Mines Limited · TSX:TKO
Taseko Mines — Shareholder Meeting (March 2006)
32 slides from Taseko Mines's shareholder meeting presentation, Mar 22, 2006
Slide 1: 2006 AGM
2006 AGM March 22, 2006 Ron Thiessen – Chairman Russell Hallbauer – President & CEO
Slide 2: Agenda
1. Corporate Summary 2. 2005 Review 3. 2006 Key Objectives 4. Outlook
Slide 3: Corporate Summary: Three Key Assets
1. Corporate Summary Three Key Assets 1. Gibraltar Copper/Molybdenum Mine 2. Prosperity Gold/Copper Porphyry Deposit 3. Harmony Gold Deposit
Slide 4: Location of Taseko Properties
1. Corporate Summary Location of Taseko Properties Central British Columbia Located Near: British • Main transportation corridor (Road & Rail) Columbia • Services (Hydro Electric) Large Resource Based Communities: • Williams Lake • Quesnel Harmony • Prince George Gibraltar • 100 Mile House Prosperit
Slide 5: Gibraltar - Reserves & Resources
1. Corporate Summary Gibraltar - Reserves & Resources Tonnes Sulphide Reserves Category Cu(%) Mo(%) (millions) • @ US$1.10 Copper Sulphide Reserves 194 0.310 0.010 • @ US$6.00 Molybdenum • @ 0.20% cutoff Sulphide Resources Measured 410 0.286 0.008 Indicated 204 0.269 0.008 Total Sulphide 808 0.287 0
Slide 6: The Gibraltar Advantage: Mine Life
1. Corporate Summary The Gibraltar Advantage • Mine life (@ US$1.10/lb cut-off) • Current Reserves 14.5 years • Low Grade Stockpile 3.0 years • Total Mine Life 17.5 years
Slide 7: The Gibraltar Advantage: Labour and Location
1. Corporate Summary The Gibraltar Advantage • Ability to attract & retain technical/trades personnel • Central BC location Gibraltar • Near resource communities • Williams Lake 20,000 • Quesnel 10,000 • Prince George 80,000 • 100 Mile House 2,000
Slide 8: The Gibraltar Advantage: Labour Agreement
1. Corporate Summary The Gibraltar Advantage • 24-month labour agreement • Copper-price based compensation system Trades Equipment Operator Wage Bonus Total Wage Bonus Total Highland $29.98 $1.75 $31.73 $27.30 $1.59 $28.89 HML $30.21 $1.50 $31.71 $26.48 $1.5 $27.98 Mt. Polley $27.25 $3.47 $30.72 $24
Slide 9: The Gibraltar Advantage: Smelting & Refining Charges
1. Corporate Summary The Gibraltar Advantage • Attractive smelting & refining charges T/C R/C (US$/ton) (US$/lb) 2006 30-45 0.03-0.045 2007 45-60 0.04-0.06
Slide 10: The Gibraltar Advantage: Rail, Port and Marketing
1. Corporate Summary The Gibraltar Advantage • Rail & port agreements for concentrate transportation • Marketing agreement with Teck Cominco
Slide 11: 2005 Review: Relative Performance
2. 2005 Review 180 Copper Price S&P Diversified Metals & Mining TSX Venture TKO Share Price 150 (Relative Performance) 120 90 60 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06
Slide 12: Financial – Net Earnings
2. 2005 Review Financial – Net Earnings 18,000 12,000 (C$, thousands) 6,000 0 Q1 Q2 Q3 Q4 -6,000
Slide 13: Financial – Cash & Equivalents + Inventory
2. 2005 Review Financial – Cash & Equivalents + Inventory 40 30 (C$, millions) 20 10 0 Q1 Q2 Q3 Q4
Slide 14: Operational – Copper Production
2. 2005 Review Operational – Copper Production 16 12 (lbs, millions) 8 4 0 Q1 Q2 Q3 Q4
Slide 15: Operational – Molybdenum Production
2. 2005 Review Operational – Molybdenum Production 200 150 (lbs, thousdands) 100 50 0 Q1 Q2 Q3 Q4
Slide 16: Copper / Molybdenum Price
2. 2005 Review Copper / Molybdenum Price $2.00 $40 10-Year Average Copper Price = US$0.96/lb 10-Year Average Molybdenum Price = US$7.90 (Molybdenum - US$ per pound) (Copper - US$ per pound) $1.75 $35 $1.50 $30 $1.25 2005 Average Realized Copper Price = US$1.48/lb $25 2005 Average Realized Molybdenum
Slide 17: 2006 Production Estimate
3. 2006 Key Objectives 2006 Production Estimate Q1 (F) Q1 (A) Q2 Q3 Q4 Copper production (millions lb) 13.4 13.4 15.2 15.7 15.8 Molybdenum (thousands lb) 200 223 220 227 227 Copper Production costs1, net of by 1.03 $1.10 $0.81 $0.81 $0.80 product credits, US$ per lb of copper Off property costs2 (tr
Slide 18: Progress Gibraltar Strategy
3. 2006 Key Objectives Progress Gibraltar Strategy Increase Reserves Supports Expansion Refinery • Decrease site operating • Further decrease total costs by 10% operating costs by 15% Result Mid-Tier Cost Profile • Production through copper cycle
Slide 19: Gibraltar: Increase Reserve Base
3. 2006 Key Objectives Gibraltar a) Increase Reserve Base • Over 600 million tonnes of resources at similar grade to current reserves • $2 million drilling program in 2006 • Two drills currently on site • Drilling complete by end of June • Reserve update in September
Slide 20: Gibraltar: Mill Expansion Project
3. 2006 Key Objectives Gibraltar b) Mill Expansion Project • Complete engineering study and present to Board for investment decision next week • Detailed engineering commencing upon Board approval • Construction to begin in August • Mill expansion completed by December 2007
Slide 21: Mill Expansion Project
3. 2006 Key Objectives Mill Expansion Project Current Production 36,000 ton/day After Proposed Expansion 46,000 ton/day 25% mill expansion = 30%+ increase in metal production Capital Cost Estimate = $55 million or, C$5,500/ton/day of installed capacity 25% expansion takes annual copper metal product
Slide 22: Gibraltar: Progress Refinery Project
3. 2006 Key Objectives Gibraltar c) Progress Refinery Project • Reserve increase • Complete a long-range mine plan • Ongoing discussions with Teck Cominco • Evaluation of long-term T/C R/Cs
Slide 23: Japanese Long-Term TC/RCs
3. 2006 Key Objectives • Evaluation of long-term T/C R/Cs Japanese Long-Term TC/RCs TC RC PP Combined (US$/ton Con) (US$/lb Cu) (US$/lb Cu (US$/lb Cu) 2005 86 8.6 7.7 29.6 2006 95 9.5 6.2 30.6 2007 70 7.0 1.6 19.5 2008 65 6.5 0.5 17.2 2009 60 6.0 0.0 15.4 2010 55 5.5 -0.5 13.6 2011 75 7.5 -1.0 18.2
Slide 24: Prosperity – Project History
3. 2006 Key Objectives Prosperity – project history PD TKO Nittetsu Quintana Bethlehem Cominco New TKO Project on Hold Feasibility Permitting Pre-feasibility Drill-out Exploration 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 45 Years
Slide 25: Prosperity – Current Status
3. 2006 Key Objectives Prosperity – current status Commissioning Construction Project Financing Permitting Environtmental Assessment Feasibility 2005 2006 2007 2008 2009 2010
Slide 26: Prosperity: Compliant Feasibility Study
3. 2006 Key Objectives Prosperity a) Compliant Feasibility Study • New reserve estimate • Re-engineered mill design • Complete by end of 2006
Slide 27: Prosperity: Environmental Assessment
3. 2006 Key Objectives Prosperity b) Environmental Assessment • Have initiated discussions with different levels of government • Complete field data gathering • Prepare Environmental Assessment Report
Slide 28: 24-Month Forward Copper Price
4. Outlook 24-Month Forward Copper Price Current Copper $3.00 Price: US$2.39/lb 24-Month Copper Price: US$2.02/lb Current Forward Curve $2.00 (US$ per pound) Forward Curve as of November 2005 $1.00 $0.00 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07
Slide 29: Estimated Gibraltar Cost Profile
4. Outlook Estimated Gibraltar Cost Profile 100 90 Mill Expansion Refinery Complete Complete (Relative Reduction) 80 70 60 50 Q1(A) Q2 Q3 Q4 2007 2008 2009 2010 2011 (Base Period) Note: Assumes completion of a 25% mill expansion and refinery.
Slide 30: Outlook
4. Outlook • Decreasing cash cost profile • Near-term increasing copper & molybdenum production • from grade improvements and expansion • Advanced timelines for organic growth • Stable operating jurisdiction vs. third world country peers • Stable tax regime
Slide 31: 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 32: Thank You! Questions
Thank You! Questions