Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (December 2023)
34 slides from Taseko Mines's investor presentation, December 2023
Slide 1: Building North America's Low-Cost Multi-Asset Copper Producer
Building North America’s Low-Cost Multi-Asset Copper Producer December 2023
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: Taseko – Investment Highlights
Taseko – Investment Highlights British Columbia Building a Multi-Asset, North American Copper Producer Aley C A N A D A Strong Copper Gibraltar Market New Prosperity Yellowhead Commitment to Strong Environmental, Social & Proven Team of Mine Governance Performance Builders & Operators U N I T E D S
Slide 4: Capital Structure & Coverage
Capital Structure & Coverage Analyst Coverage Target Price & Recommendation Buy C$2.75 (+64%) Nov ’23 Listed TSX:TKO / NYSE:TGB / LSE:TKO Buy C$3.70 (+120%) Nov ’23 Buy C$2.25 (+35%) Nov ’23 Share Price 52 Week High / Low Shares Outstanding* Buy C$3.00 (+80%) Nov ’23 C$1.92 C$2.48 / C$1.46 289M Hold
Slide 5: Copper Price Outlook
Copper Price Outlook 2023 copper price volatility driven by: • Concerns about global economy • Chinese economic data / Covid lockdowns Favourable long-term • Rising interest rates supply-demand dynamics: • US$ strength • Maturing global supply base and lack of $6.00 Copper Price project pipeline, wi
Slide 6: Copper Price Outlook
Copper Price Outlook Highlights from S&P Global Copper Study (July 2022) • Copper – the “metal of electrification” – is essential to all energy transition plans • Copper market would need to grow from 25 million metric tonnes (MMt) today to ~50 MMt by 2035 to achieve ‘net-zero’ by 2050, a record-hig
Slide 7: Electric Vehicles – A Rapidly Emerging Market
Electric Vehicles – A Rapidly Emerging Market Copper is Essential to Electric Vehicle Technology 18 to 49 lbs Conventional Car 85 lbs Hybrid Electric Vehicle 132 lbs Plug-in Hybrid Electric Vehicle 183 lbs Battery Electric Vehicle 196 lbs A Hybrid Electric Bus 814 lbs Battery Electric Bus • Copper i
Slide 8: Gibraltar Copper Mine – British Columbia
Gibraltar Copper Mine – British Columbia A foundation of stable cashflow MINE TYPE STAGE PRODUCTION (LoM) Open Pit – Cu/Mo Producing 130Mlbs (~60kt Cu) CASH COSTS (LOM) MINE LIFE REPLACEMENT VALUE US$2.30/lb 22 Years +US$1 billion1 1. Calculated using US$15,000 / ton capacity multiplied by capacity
Slide 9: Gibraltar Copper Mine – Large-Scale, Steady-State Mine
Gibraltar Copper Mine – Large-Scale, Steady-State Mine Value Creation • Acquired Gibraltar in 1999 for $1 • Restarted the mine in 2004 • Between 2006 and 2013, invested C$800 million to expand and modernize the mine to 85,000 tons per day • In 2010, sold 25% of the mine for C$187 million to a Japane
Slide 10: Gibraltar Mine – Cash Flow Growth from Stable Mining Operation
Gibraltar Mine – Cash Flow Growth from Stable Mining Operation Leverage to copper has resulted in strong earnings growth and cash flow generation • Gibraltar is a foundation of stable cash flow for the Company throughout the copper price cycle • Taseko has maintained positive operating cash flow thr
Slide 11: Florence Copper Project – Arizona
Florence Copper Project – Arizona Pathway to a low-cost future MINE TYPE STAGE PROCESSING In-situ Leach Construction SX/EW PRODUCTION (PER YEAR) ESTIMATED CASH COSTS MINE LIFE 85Mlb (~40kt) Cu US$1.11/lb LOM 22 Years 11
Slide 12: Florence Copper Project – A Near Term, Low Cost Copper Project
Florence Copper Project – A Near Term, Low Cost Copper Project Project Highlights • Over US$135 million was spent on the project by former owners (Conoco, Magma Copper, BHP Copper) • Taseko has invested a further $325M since 2014, including US$25M to build the PTF • All major power, transportation,
Slide 13: In-Situ Copper Recovery ("ISCR")
In-Situ Copper Recovery (“ISCR”) How does in-situ copper recovery work? • A low pH solution is pumped through perforations at the bottom of the injection wells and into the copper-bearing mineralization. • A ring of four recovery wells surrounds each injection well, creating a “hydraulic gradient” t
Slide 14: Benefits of ISCR
Benefits of ISCR Arizona Conventional Open-pit Mine vs. Florence Copper Project 65% 71% 78% Other Benefits: • Low cost • Small environmental footprint (less than a square mile) Energy Carbon Water Use • Numerous site redevelopment Consumption Emissions (gal/lb Cu) opportunities (post closure) (kWh/l
Slide 15: Florence Copper Project – A Defined Path to Production
Florence Copper Project – A Defined Path to Production Two Phase Development Approach • PTF development and construction starts Phase 1: Production Test Facility (~US$25M) • The PTF consisted of a wellfield and SX/EW plant • Wellfield & SX/EW plant commissioned in Q3, 2018 o 24 wells: 4 injection we
Slide 16: Florence Copper Project – Financing
Florence Copper Project – Financing Strategic Partnership with Mitsui & Co. (U.S.A.) Inc. Florence Financing Plan • Provides US$50 million of construction financing • Strong endorsement of project valuation: o Initial US$50 million investment for 2.67% copper stream plus an offtake contract for 81%
Slide 17: Florence Copper Project – Procurement
Florence Copper Project – Procurement SX Modules, EW Cell Covers, Electrolyte Filters HDPE Piping 17
Slide 18: Looking to the Future
Taseko Mines Looking to the Future 18
Slide 19: Yellowhead Copper Project
Yellowhead Copper Project Project Highlights • Advanced stage project acquired by Taseko in 2019 for ~C$13 million in Taseko shares • Located in close proximity to power, rail and highway • In January 2020, Taseko announced improved economics and new 817M tonne Reserve estimate Technical Study Highl
Slide 20: New Prosperity Gold-Copper Project
New Prosperity Gold-Copper Project Project Highlights • One of the Largest Copper-Gold porphyries in the world • Life of mine average annual production of ~540,000 gold equivalent oz • Provincial Authorization (Environment Assessment Certificate) in place 5-year Production Profile LOCATION OWNERSHIP
Slide 21: Taseko Copper Reserves
Taseko Copper Reserves Significant Value in P&P Copper Reserves • Nearly 15 billion pounds of copper in reserves • Including gold in reserves, over 19 billion pounds of copper equivalent 15 30 New Prosperity (Lbs / Market Capitalization) (Billions lbs Copper) 10 20 Yellowhead 5 10 Florence Gibraltar
Slide 22: Why Invest in Taseko – The Valuation Case
Why Invest in Taseko – The Valuation Case • Significant gap between asset NPV and $3,000 Taseko Valuation Waterfall market cap $2,500 $1,200 o Base NAV for Gibraltar (at US$3.50 cu) and $1,950 $2,000 Florence (US$3.75 cu) $550 $1,500 o Not including Yellowhead, New Prosperity or Aley $1,300 ~C$1.5 b
Slide 23: Appendix
Appendix 23
Slide 24: Credit Profile
Credit Profile Substantial improvement in leverage metrics on the back of higher copper prices, Gibraltar mine plan optimization and enhanced liquidity • Taseko maintains reasonable leverage levels and LTM Adjusted EBITDA balances capital needs through a combination of debt, equity and internally ge
Slide 25: 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 signifi
Slide 26: 2022 ESG Highlights: 360° of Value
2022 ESG Highlights: 360° of Value Environment Florence Copper Project will be the Trees Planted Shrubs Planted Grass Seeded Lowest CO2 and energy intensity 17,930 51,090 34 Hectares copper producer in North America GIBRALTAR MINE 2022 Biological Water Treatment Initiated permitting process eDNA Wil
Slide 27: A Proven Team of Mine Builders and Value Creators
A Proven Team of Mine Builders and Value Creators Senior Management Board of Directors Ron Thiessen – Chairman Peter Mitchell • President, CEO and Director of • Chartered Professional Accountant with over 35 Northern Dynasty Minerals. years of senior financial management experience. • Chartered Prof
Slide 28: Aley Niobium Project
Aley Niobium Project Project Highlights • The world's largest niobium deposit, outside the two operating mines in Brazil (site covers ~433 km2) • “Green" rare metal – metals like niobium, are the heart of green technology, such as wind turbines and electric vehicles • Taseko acquired the project in
Slide 29: 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 30: Appendix – Reserves & Resources
Appendix – Reserves & Resources Gibraltar Florence Copper Tons Grade Contained Metal Tons Grade Contained Metal Category Category (millions) Cu (%) Mo (%) Cu (B lbs) (millions) Cu (%) Cu (B lbs) Sulphide Mineral Reserves Effective December 31, 2022 at a 0.15% Cu cut-off Mineral Reserves Effective De
Slide 31: Appendix – Reserves & Resources
Appendix – Reserves & Resources Yellowhead Aley Contained Contained Tonnes Grade Tonnes Grade Category Metal Category Metal (millions) (millions) Cu (%) Au (g/t) Ag (g/t) Cu (B lbs) Nb205 (%) Nb (M kg) Mineral Reserves Effective December 31, 2019 at a 0.17% Cu cut-off Mineral Reserves Effective Sept
Slide 32: Appendix – Reserves & Resources
Appendix – Reserves & Resources New Prosperity Tonnes Grade Contained Metal Category (millions) Au (g/t) Cu (%) Au (M oz) Cu (B lb) Mineral Reserves Effective November 2, 2009 at a C$5.50 NSR/t cut-off Proven 481 0.46 0.26 7.1 2.8 Probable 350 0.35 0.18 3.9 1.4 Total P&P Reserves 831 0.41 0.23 11.0
Slide 33: 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 and Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports, news
Slide 34: Thank You!
Thank You! 34