Taseko Mines Limited · TSX:TKO
Taseko Mines — Shareholder Meeting (June 2015)
19 slides from Taseko Mines's shareholder meeting presentation, Jun 11, 2015
Slide 1: Building Value Through Operating and Developing Major Mining Projects
Building Value Through Operating and Developing Major Mining Projects Taseko 2015 Annual General Meeting June 11, 2015 1
Slide 2: Forward Looking Statements
Forward ForwardLooking Looking Statements Statements Some of the statements contained in the following material are "forward‐looking Some of the statements". Allstatements statementscontained in theother in this release, following thanmaterial statementsare of"forward‐looking historical statements".
Slide 3: Taseko Valuation: Net Asset Value
Taseko Valuation Net Asset Value What is Net Asset Value? • an expression of the underlying value of a company • the value of a company’s assets minus the value of its liabilities • typically stated on a ‘per share’ basis How is the value of Taseko’s assets calculated? • net present value based on d
Slide 4: Taseko Valuation: Net Asset Value
Taseko Valuation Net Asset Value How has Taseko increased its NAV? • Through prudent, accretive investments or value creating acquisitions, such as: • $700 million to expand and modernize Gibraltar (from 50 million to 140 million pounds annually) • $30 million invested in Aley resulting in $860 mill
Slide 5: Taseko Value: Net Asset Value Per Share
Taseko Value Net Asset Value Per Share 2015 Gibraltar $16.00 Reserve Update Sale of 25% of Gibraltar Federal Government for $190 million Rejection of Prosperity Curis Resources Acquisition $12.00 BC Provincial Approval Successful Exploration for Prosperity Program at Aley 84 Million Tonne 830 Millio
Slide 6: Taseko Share Price vs. NAV
Taseko Value Taseko Share Price vs. NAV $16.00 $12.00 Increasing NAV and share price disconnected $8.00 $4.00 $0.00 Jan‐08 Jan‐09 Jan‐10 Jan‐11 Jan‐12 Jan‐13 Jan‐14 Jan‐15 NAV/Share Taseko Share Price 6
Slide 7: Why the Disconnect?
Taseko Value Why the Disconnect? Copper Moly $5.00 $18.00 Down 37% Down 53% $14.00 $4.00 $10.00 $3.00 $6.00 $2.00 $2.00 Jan‐11 Jul‐11 Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Jan‐15 Jan‐11 Jul‐11 Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Jan‐15 Coal Iron Ore $220.00 $180.00 $180.00 $140.00 $140.00
Slide 8: Why the Disconnect?
Taseko Value Why the Disconnect? S&P/TSX Global Mining S&P/TSX Global Gold 140 500 110 400 Down 49% Down 61% 80 300 50 200 20 100 Jan‐11 Jul‐11 Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Jan‐15 Jan‐11 Jul‐11 Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Jan‐15 S&P/TSX Diverisified Metals & Mining S&P/TSX
Slide 9: Strong Starting Point to Rebuild Valuation
Looking Forward Strong Starting Point to Rebuild Valuation Improving Stabilized Solid Quality Production Market Financials Projects 9
Slide 10: Improving Production: Mine
Looking Forward Improving Production Mine • 2014 operational challenges behind us • Availability of mining equipment meeting targeted rates • Updated Mine Plan will improve Gibraltar economics Mining Equipment Availability 100% 90% 80% 70% 60% Q1 14 Q2 14 Q3 14 Q4 14 January February March April Sho
Slide 11: Improving Production: Mill
Looking Forward Improving Production Mill • Operating above design capacity – YTD throughput of 86,700 tons per day • Grade has increased by ~25% since Q4/14 • Recoveries have increased by 5% since Q4/14 Average Tons Per Day 95,000 85,000 75,000 65,000 55,000 Q1 14 Q2 14 Q3 14 Q4 14 January February
Slide 12: Improving Production: Operating Costs
Looking Forward Improving Production Operating Costs • Cost per ton milled down 20% in last six months as spending decreased • Cost per pound expected to drop by ~30% (from Q4) to US$2.00 Cost Per Ton Milled $13 $11 $9 $7 $5 $3 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 12
Slide 13: Stabilized Copper Market
Looking Forward Stabilized Copper Market Copper Price $4.00 US$ Copper C$ Copper • Copper prices have rebounded $3.50 since hitting a low of US$2.45 in January $3.00 • C$ price of copper is higher today $2.50 than a year ago due to weak Canadian dollar $2.00 Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15
Slide 14: Stabilized Copper Market – Are we at the Bottom?
Looking Forward Stabilized Copper Market – Are we at the Bottom? Source: IRESS data, Lion Analyst “The market continues to hit new lows, and the magnitude of the correction in miners since 2011 has now become the longest in the last 50 years.” Source: IRESS data, Lion Analyst 14
Slide 15: Solid Financial Position
Looking Forward Solid Financial Position Balance Sheet: Income / Cash Flow: • Significant waste stripping in Q3 • Generated $52 million of and Q4 impacted costs and cash operating profit and $51 million of position cash flow from operations in 2014 • Working capital at end of Q1 was • Q1 operating p
Slide 16: Quality Projects
Looking Forward Quality Projects Aley (Nb) 84 million tonne reserve @ 0.50% Nb2O5 Expected to produce 9 million kgs of Nb per year over its 24 year mine life New Prosperity (Cu‐Au) 13.3 million ounces of gold, 5.3 billion pounds of copper Florence (Cu) In‐situ copper recovery project 340 million ton
Slide 17: Florence Copper Project
Florence Copper Project A Near Term, Low Cost Copper Producer Location: Central Arizona near the community of Florence Ownership: 100% 340 million tons grading 0.358% TCu (at a 0.05% total copper Mineral Reserves: cutoff) containing 2.42 billion pounds of copper Mine Type: In‐situ copper recovery Mi
Slide 18: Aley Niobium Project
Aley Niobium Project Accretive Development Opportunity Location: Northern British Columbia Ownership: 100% Mine Type: Open Pit, 10,000 tpd mill throughput Mine Life: 24 years Project Highlights Proven and probable reserves of 84 million tonnes grading 0.50% Nb2O5 announced in September 2014 Pre‐tax
Slide 19: Thank you. Questions?
Thank you. Questions? Taseko 2015 Annual General Meeting June 11, 2015 19