Taseko Mines Limited · TSX:TKO
Taseko Mines — BMO Capital Markets Global Metals & Mining Conference 2021
33 slides from Taseko Mines's conference presentation, March 2021
Slide 1: Building North America's Low-Cost Multi-Asset Copper Producer
BUILDING NORTH AMERICA’S LOW-COST MULTI-ASSET COPPER PRODUCER BMO Capital Markets Global Metals & Mining Conference March 1-5, 2021
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: Presenting Management Team
Presenting Management Team Stuart McDonald Brian Bergot President Vice President, IR CPA Mr. McDonald is a mining executive with 25 Mr. Bergot was appointed Vice President, years of experience in mining, financial, Investor Relations in March 2014 and has nearly corporate development and management
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 Experienced management team; proven operator NEW PROSPERITY YELLOWHEAD Gibraltar – Significant copper production / cash flow base –
Slide 5: Copper Price Outlook
Copper Price Outlook Cu Prices (US$/lb) – Historical and Forward Curve1 Copper prices declined in H1 2020 due to COVID-19 but have since rebounded to multi-year highs; all time highs denominated $4.50 Spot Copper: in C$ $4.11/lb $4.00 Favourable long-term supply-demand dynamics $3.50 ▪ Maturing glob
Slide 6: Gibraltar Copper Mine – British Columbia
Gibraltar Copper Mine – British Columbia A foundation of stable cashflow MINE TYPE Open Pit – Copper/Moly STAGE Producing PRODUCTION (LoM) 135Mlbs (~60kt Cu) CASH COSTS (LoM) US$1.80/lb Mine Life 18 Years Replacement Value +US$1 billion1 6
Slide 7: Gibraltar Copper 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$187 million to a Japanese consort
Slide 8: Gibraltar Copper Mine
Gibraltar Copper Mine One of the Americas most efficient open pit copper mines Lowest Cost Open Pit Copper Mines in the Americas (US$/t milled) 1 Chapada $5.8/t Constancia $7.4/t On a cost per tonne milled basis, Gibraltar is one Gibraltar $8.3/t of the lowest cost operations in the world. This is M
Slide 9: Resilient Through Copper Price Downturns
Resilient Through Copper Price Downturns Positive operating cash flow generation through the cycle demonstrates Taseko’s operational flexibility and ability to adapt Taseko has been able to maintain positive operating cash flow $200 $4.50 throughout extended periods of weak copper prices through str
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 PRODUCTION 85Mlb (~40kt) Cu / year ESTIMATED CASH COSTS US$1.10/lb LOM Mine Life 21 Years 10
Slide 11: Florence Copper Project
Florence Copper Project A near term, low cost copper project Location Central Arizona near the town of Florence Project Highlights Ownership 100% Over US$135 million was spent on the project by former owners (Conoco, Magma Copper, BHP Copper) 345 million tons grading 0.36% TCu (at a 0.05% total Mine
Slide 12: In-Situ Copper Recovery ("ISCR")
In-Situ Copper Recovery (“ISCR”) How does in-situ copper recovery work? Injection and recovery wells are drilled deep into the bedrock #1 where the oxide copper ore is situated Wells are concrete encased and sealed to protect water #2 quality Highly diluted acid (99.5% water, 0.5% acid) is pumped un
Slide 13: Environmental Advantages of In-Situ Copper Recovery
Environmental Advantages of In-Situ Copper Recovery ISCR – a green production method for the green metal of the future Illustrative Environmental Advantages of Florence ISCR Project1 Small Environmental Footprint Conventional Open Pit Mine Florence ISCR Numerous Site Redevelopment 41 Opportunities L
Slide 14: Florence Copper Project
Florence Copper Project A defined path to production 2017 2018 2019 2020 2021 2022 Technical work results in PTF development First cathode produced Completed PTF Aiming to complete First production from significant improvement in and construction starts in April 2019 production phase permitting in m
Slide 15: Florence Copper Project
Florence Copper Project Capital efficient, high return growth project Cu Price Pre-Tax NPV Pre-Tax Sensitivity (US$/lb) (US$M) IRR Value Creation Model $3.00 $916 44% +10% $3.30 $1,122 51% In 2014, Taseko acquired Florence Copper for C$80M and invested US$80M in the project to date, including US$25M
Slide 16: Taseko Mines Looking to the Future
Taseko Mines Looking to the Future 16
Slide 17: Looking to the Future – Yellowhead
Looking to the Future – Yellowhead 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 Minera
Slide 18: Looking to the Future – New Prosperity
Looking to the Future – New Prosperity 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 Re
Slide 19: Taseko Copper Reserves Guidance
Taseko Copper Reserves Guidance +/-5% Significant Value in P&P Copper Reserves Nearly 15 billion pounds of copper in reserves, more than any of Taseko’s peers Current market cap implies value of C$0.04 per pound of copper, lower than peers 15 1.00 New 12 Prosperity 0.80 (Cents / Copper Lbs) (Billion
Slide 20: Why Invest in Taseko
Why Invest in Taseko Taseko Valuation Waterfall $1,800 $850 $1,600 $1,400 $1,335 Significant gap between asset NPV and market cap $1,200 $280 $1,000 ▪ Based on US$3.00/lb copper and not including Yellowhead, New $800 $745 ~C$700mm Gap Prosperity or Aley $600 $400 Near-term and medium-term copper pro
Slide 21: Appendix
Appendix 21
Slide 22: Capital Structure & Coverage
Capital Structure & Coverage Share Price C$2.13 Analyst Coverage Target Price & Recommendation 52 Week High / Low C$2.34 / 0.28 Liberum Buy C$3.08 (+45%) Jan ’21 BMO Buy C$1.90 (-5%) Jan ’21 Listed TSX:TKO / NYSE:TGB / LSE:TKO Cantor Fitzgerald Buy C$2.50 (+20%) Jan ’21 Shares Outstanding* 282M Para
Slide 23: Improved Credit Profile
Improved Credit Profile Substantial improvement in leverage metrics on the back of higher copper prices, Gibraltar mine plan optimization and enhanced liquidity Operational Improvement Taseko maintains reasonable leverage levels and balances LTM Adjusted EBITDA (US$M)1 capital needs through a combin
Slide 24: 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 significa
Slide 25: 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 26: A Proven Team of Mine Builders and Value Creators
A Proven Team of Mine Builders and Value Creators Senior Management Russell Hallbauer Stuart McDonald Bryce Hamming CEO & Director President CFO P.Eng CPA CFA, CPA Board Professional engineer with 35 years’ Mining executive with 25 years of experience in Joined in 2018, with over 20 years experience
Slide 27: Aley Niobium Project
Aley Niobium Project Project Highlights 140 km north of Mackenzie, British Location Columbia The world's largest niobium deposit, outside the two operating mines in Brazil (site covers Ownership 100% ~433 km2) Mineral 84 million tonnes grading 0.50% Nb2O5 “Green" rare metal – metals like niobium, ar
Slide 28: 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 29: Adjusted EBITDA and Net Debt Reconciliation
Appendix Adjusted EBITDA and Net Debt Reconciliation NINE MONTHS ENDED LAST TWELVE MONTHS YEARS ENDED DECEMBER 31 (CDN$ dollars in thousands) SEPTEMBER 30 March 31 June 30 September 30 2017 2018 2019 2019 2020 2020 2020 2020 Net income (loss) C$34,262 (C$35,774) (C$53,382) (C$43,451) (C$29,218) (C$9
Slide 30: 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) Metal1 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 Reser
Slide 31: Reserves & Resources
Appendix Reserves & Resources Yellowhead New Prosperity Category Size Grade Recoverable Contained Category Size Grade Recoverable Metal Contained Metal (at 0.17% Cu cut- (M Tons) Copper Copper (M off) Tonnes) Au Cu Au Cu Au (g/t) Cu (%) Cu (%) Au (g/t) Ag (g/t) Cu Eq (%)* (B lbs) (B lbs) (M oz) (B l
Slide 32: Reserves & Resources
Appendix Reserves & Resources Aley Category Size Grade Recoverable Contained Metal (M Tonnes) Metal Nb205 (%) Nb (M kg) Nb (M kg) Proven 44 0.52 102 160 Probable 40 0.48 86 134 Total P&P Reserves 84 0.50 188 294 (at 0.30% Nb2O5 cut-off) Measured 113 0.41 - 323 Indicated 173 0.35 - 423 Total M&I Reso
Slide 33: 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
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