Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (October 2020)
31 slides from Taseko Mines's investor presentation, October 2020
Slide 1: Building North America's Low-Cost Multi-Asset Copper Producer
October 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: Presenting Management
Presenting Management Stuart McDonald Brian Bergot President Vice President, IR CPA Mining executive with 25 years of experience in mining, financial, Brian Bergot was appointed Vice President, Investor Relations in March corporate development and management roles. He joined Taseko as CFO 2014 and h
Slide 4: 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 Highlights ALEY NEW PROSPERITY Experienced management team; proven operator YELLOWHEAD Assets in safe/stable jurisdiction (Canada / US) Gibraltar –
Slide 5: Taseko in a Nutshell
Taseko in a Nutshell C A N A D A Gibraltar Copper Mine - current B R I T I S H C O L U M B I A 135 million pounds (60,000 tonnes) annual production GIBRALTAR 2.5 billion pounds of recoverable copper in reserves +C$150 million annual operating margin @ US$3.00/lb copper price ALEY US$1.80/lb long-ter
Slide 6: 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/lb LoM Mine Life 18 Years Replacement Value +US$1 billion 6
Slide 7: Gibraltar Copper Mine
Gibraltar Copper Mine Large-Scale, Steady-State Mine Value Creation Acquired Gibraltar in 1999 for C$1 Restarted the mine in 2005 Between 2006-2013 invested C$800 million to expand and modernize the mine from 32,000 tons per day to 85,000 tons per day In 2010, sold 25% of the mine for C$187 million
Slide 8: Gibraltar Copper Mine Guidance
Gibraltar Copper Mine Guidance +/-5% Proven Sustainability through the Cycle On a cost per ton milled basis, Gibraltar is one of $200 $4.50 the lowest cost operations in the world. This is $160 $3.60 achieved by: $120 $2.70 A skilled and efficient workforce $80 $1.80 Low cost, reliable hydro pow
Slide 9: 2020 Operations / COVID-19
2020 Operations / COVID-19 In March 2020 Taseko implemented Health & Safety and Operational changes Gibraltar Cu Production to respond to COVID-19 35 150 • New procedures are in place to mitigate risk of COVID-19 impacting our 28 +5% Range 130 employees and operations (millions lbs) (millions lbs) •
Slide 10: Florence Copper Project - Arizona
Florence Copper Project - Arizona MINE TYPE Pathway to a In-situ Leach STAGE low-cost future Development PROCESSING SX/EW FUTURE PRODUCTION 85 Mlb / 40 Kt Cu LoM Mine Life 20 Years ESTIMATED CASH COSTS US$1.13/lb LOM* 10
Slide 11: Florence Copper Project
Florence Copper Project A Near Term, Low Cost Copper Producer Location Central Arizona near the town of Florence Ownership 100% Project Highlights 345 million tons grading 0.36% TCu (at a 0.05% total Over US$135 million was spent on the project by former owners (Conoco, Mineral Reserves copper cutof
Slide 12: Florence Copper Project: Environmental Advantages of In-Situ Recovery
Florence Copper Project Environmental Advantages of In-Situ Copper Recovery ISCR - a green production method for the green metal of the future No mine tailings or waste rock for long-term surface impoundment, minimal dust emissions No significant change to site topography No long-term use of land af
Slide 13: Florence Copper Project: A Defined Path to Production
Florence Copper Project A Defined Forward to Production 2017 2018 2019 2020 2021 Technical work results PTF development First cathode produced in Draft Aquifer Protection Aiming to complete in significant and construction starts April 2019 Permit issued in August permitting in early 2021 improvement
Slide 14: Florence Copper Project: Low Cost Growth
Florence Copper Project Low Cost Growth Cu Price NPV Post-Tax Sensitivity (US$/lb) (US$M) IRR Value Creation -20% $2.48 $356 26% -10% $2.79 $512 34% In 2014, Taseko acquired Florence for C$80 million, subsequently invested US$40 million into the asset and will require US$227 million of pre-productio
Slide 15: Taseko Mines Looking to the Future
Taseko Mines Looking to the Future 15
Slide 16: Looking into the Future
Looking into the Future Following a Long, Successful Track Record Highlights Short Term Focus Long Term Goals Proven operator with unique skill Maintain steady-state production from the To be the No.1 ranked mid-cap North set and good reputation Gibraltar Mine American Copper producer listed on the
Slide 17: Why Invest in Taseko – The Valuation Case
Why Invest in Taseko – The Valuation Case Position for the Next Copper Price Cycle $1,800 Taseko Valuation Waterfall $900 Value Creation $1,600 $1,400 $1,335 $1,200 $310 Taseko is well positioned to benefit from an upswing in copper $1,000 prices $745 C$1bn $800 Gap $600 Value will be created from e
Slide 18: Appendix
Appendix 18
Slide 19: 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’ Mining executive with 25 years of experience in Joined in 2018, with ove
Slide 20: Capital Structure & Coverage
Capital Structure & Coverage Share Price C$0.90 Analyst Coverage Target Price & Recommendation Liberum Buy C$2.00 (+35%) Aug ’20 52 Week High / Low C$1.76 / 0.28 BMO Buy C$1.10 (-25%) Aug ’20 Listed TSX:TKO / NYSE:TGB / LSE:TKO Cantor Fitzgerald Buy C$1.50 (--%) Apr ’20 Shares Outstanding* 246.2M St
Slide 21: Yellowhead Copper Project
Yellowhead Copper Project Project Highlights Location 150km NE of Kamloops, British Columbia Advanced stage project acquired by Taseko in 2019 for ~C$13 million in Taseko shares Ownership 100% Located in close proximity to power, rail and highway 4.4 billion pounds recoverable copper Mineral Reserve
Slide 22: New Prosperity Gold-Copper Project
New Prosperity Gold-Copper 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 gold equivalent oz 1 7.7 million ounces recoverable gold Mineral Reserv
Slide 23: One of the World's Most Efficient Open Pit Copper Mines
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, highway, etc.) Gibraltar v
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: 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 26: Electric Vehicles – A Rapidly Emerging Market
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 copper, with demand fo
Slide 27: 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 operating mines in Brazil (site covers Ownership 100% ~433 km2) Mineral Reserves 84 million tonnes grading 0.50% Nb2O5 “Green" rare metal – metals like ni
Slide 28: 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 29: 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) Metal 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 Reserv
Slide 30: Reserves & Resources
Appendix Reserves & Resources Yellowhead Aley Category Size Grade Recoverable Contained Category Size Grade Recoverable Contained Metal (at 0.17% Cu cut- (M Tons) Copper Copper (M Tonnes) Metal off) Cu (%) Au (g/t) Ag (g/t) Cu Eq (%)* (B lbs) (B lbs) Nb205 (%) Nb (M kg) Nb (M kg) Proven 44 0.52 102
Slide 31: Reserves & Resources
Appendix Reserves & Resources New Prosperity Category Size Grade Recoverable Metal Contained Metal (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 (at C$5.50 NSR/t 831 0.41 0.23 7.7 3.6