Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (February 2018)
14 slides from Taseko Mines's investor presentation, February 2018
Slide 1: Quality, Diverse Group of Mining Assets
Quality, Diverse Group of Mining Assets February 2018 1
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: Diversified Asset Base
Diversified Asset Base Principal Operating Asset Gibraltar: Second largest open‐pit copper mine in Canada Stake: 75% (unincorporated JV) Commodities: copper (primary), molybdenum (by‐product) and silver (by‐ product) 688 million tons P&P reserves at a grade of 0.28% Cu Eq as of December 31, 20
Slide 4: 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 2016: 688mm tons at 0.28% copper equivalent
Slide 5: Operating Costs
Operating Costs Focussed on Lower Cost per Ton Milled • Cost per ton milled sustained at ~C$10 per ton milled for past three years due to cost saving initiatives, including revised mine plan with lower strip ratio • Comparable open pit mines in South America at $15-20 per ton milled Cost Per Ton Mil
Slide 6: Strengthening Metal Prices
Strengthening Metal Prices Copper Molybdenum $4.50 $16.00 $4.00 $12.00 $3.50 $3.00 $8.00 $2.50 US$ Copper US$ Molybdenum C$ Copper C$ Molybdenum $2.00 $4.00 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Significant benefit from weak Canadian
Slide 7: Recent Results
Recent Results Performance Over Last Four Years • Strong production performance and copper price recovery has resulted in excellent financial results in 2017 Copper Production – MM lbs Total Operating Costs (C1) – US$/lb 150 $3.00 100 $2.00 50 $1.00 0 $0.00 2014 2015 2016 2017 2014 2015 2016 2017 Ad
Slide 8: Florence Copper
Florence Copper A Near Term, Low Cost Copper Producer Location: Central Arizona near the community of Florence Ownership: 100% (acquired in 2014 for US$70 million) 345 million tons grading 0.36% TCu (at a 0.05% total Mineral copper cutoff) containing 1.7 billion pounds of recoverable Reserves: coppe
Slide 9: Florence Copper: 2017 Technical Study
Florence Copper 2017 Technical Study • In January 2017, Taseko announced the results of a two-year metallurgical test program as well as an optimization of the project well field development sequence • The updated data was used to re-cost the project which resulted in a significant improvement in pr
Slide 10: Florence Copper: Profitability
Florence Copper Profitability (NPV / Initial capex) Potential impact of new US corporate With an after-tax NPV of US$680 million (significant increase expected tax rates with new US corporate tax rates) and initial capital cost of US$200 million, Florence will be one of the most profitable copper mi
Slide 11: 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 where the oxide copper ore is Wells are concrete encased and sealed to protect water quality Highly diluted acid (99.5% water, 0.5% acid) is pumped under low pressure
Slide 12: Florence Copper Project Development Plan
Florence Copper Project Project Development Plan • Final permits issued and Board approval for construction of Production Test Facility (PTF) in September 2017, with construction commencing in October. • The PTF will mainly consist of a wellfield (24 wells in total: four injection wells, nine recove
Slide 13: Positioned for Next Cycle
Positioned for Next Cycle Taseko is poised for growth with improving copper prices Copper fundamentals remain strong Demand continues to grow, but where will the supply come from? What is the incentive price for new mine supply? Gibraltar Mine operating at steady-state Highly levered to improving co
Slide 14: Thank You
Thank You