This release should be read with the Company's
Financial Statements and Management Discussion & Analysis
("MD&A"), available at www.tasekomines.com and filed on
www.sedar.com. Except where otherwise noted, all currency
amounts are stated in Canadian dollars. Taseko's 75% owned
Gibraltar Mine is located north of the City of Williams Lake in
south-central British Columbia. Production volumes stated in this
release are on a 100% basis unless otherwise
indicated.
|
VANCOUVER, July 26, 2016 /CNW/ - Taseko Mines Limited
(TSX: TKO; NYSE MKT: TGB) ("Taseko" or the "Company") reports the
results for the three and six months ended June 30, 2016.
Second Quarter Highlights
- Second quarter loss from mining operations before depletion and
amortization* was $3.2 million;
- Site operating costs, net of by-product credits* were
US$1.74 per pound produced and total
operating costs (C1)* were US$2.07
per pound produced;
- Site operating cost per ton milled* was CAD$9.67, slightly higher than the first quarter
of 2016 result of CAD$9.59;
- Copper production at Gibraltar
was 30.6 million pounds (100% basis);
- In the second quarter, the Company drew additional loan
proceeds of $47 million (US$36.8 million) under a Senior Secured Credit
Facility with an affiliate of RK Mine Finance ("Red Kite"). The
US$70 million facility was signed in
January 2016 and has now been fully
drawn down;
- The Company ended the second quarter with a cash balance of
$89 million; and
- On April 14, 2016, the Arizona
Department of Environmental Quality announced its intention to
issue a significant amendment to a Temporary Aquifer Protection
Permit for the Florence Copper Project;
Subsequent Events
- The Company has acquired copper put options for a total of 10
million pounds with maturities in the third quarter of 2016 at a
strike price of US$2.20 per pound;
and
- On July 20, 2016, Taseko
announced that the British Columbia Environmental Assessment Office
is proceeding with Taseko's request to amend the environmental
assessment certificate for its New Prosperity Project.
Russell Hallbauer, President and
CEO of Taseko, commented, "We produced slightly more copper in the
second quarter, compared to the first quarter, mainly as a result
of improved copper grades. Throughput per operating day increased
quarter-over-quarter although total tons milled was impacted by
maintenance downtime associated with a number of business
improvement projects."
"Mining productivities increased quarter-over-quarter due to
short waste hauls associated with the ability to backfill a mined
out section of the Granite Pit. We made a decision to take
advantage of the higher productivities and mined an additional 5
million tons of waste this quarter instead of idling equipment and
reducing spending. The higher stripping rates will provide access
to higher grade ore earlier than originally planned.
On a cost per ton milled basis, the mine continued to perform
very well, maintaining site operating costs below $10/ton. Total operating cost per pound of
US$2.07 was slightly lower in the
quarter due to the higher production levels. Looking forward, we
expect costs should drop below US$2.00 per pound as copper grades increase in
the second half of the year. Additionally we do not anticipate any
major capital spending before the end of the year," continued Mr.
Hallbauer.
Mr. Hallbauer concluded, "In recent weeks we have seen a modest
increase in metal prices. Considering the continued volatility in
the market, we took advantage of the pricing strength to extend our
copper hedges by acquiring put options for August and September
with a strike price of US$2.20 per
pound. Also, with the molybdenum price back to approximately
US$6.50 per pound, we are reviewing
options to restart our molybdenum circuit at Gibraltar. We believe we can produce
molybdenum for roughly US$4.00 per
pound, which at today's price level would generate a significant
by-product credit from molybdenum production, and improve our
overall operating margin."
HIGHLIGHTS
Financial
Data
|
Three months ended June
30,
|
Six months ended June
30,
|
(Cdn$ in thousands, except
for per share
amounts)
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
Revenues
|
55,090
|
92,754
|
(37,664)
|
113,273
|
147,819
|
(34,546)
|
Earnings (loss) from mining
operations before depletion and
amortization*
|
(3,164)
|
26,267
|
(29,431)
|
(3,468)
|
28,596
|
(32,064)
|
Earnings (loss) from mining
operations
|
(17,302)
|
14,010
|
(31,312)
|
(31,116)
|
6,031
|
(37,147)
|
Net income
(loss)
|
(19,384)
|
4,017
|
(23,401)
|
(20,899)
|
(21,189)
|
290
|
|
Per share - basic
("EPS")
|
(0.09)
|
0.02
|
(0.11)
|
(0.09)
|
(0.10)
|
0.01
|
Adjusted net earnings
(loss)*
|
(19,758)
|
1,601
|
(21,359)
|
(37,841)
|
(833)
|
(37,008)
|
|
Per share - basic
("adjusted
EPS")*
|
(0.09)
|
0.01
|
(0.10)
|
(0.17)
|
-
|
(0.17)
|
EBITDA*
|
(7,858)
|
25,959
|
(33,817)
|
3,144
|
13,963
|
(10,819)
|
Adjusted
EBITDA*
|
(7,642)
|
23,402
|
(31,044)
|
(12,134)
|
34,626
|
(46,760)
|
Cash flows provided by
(used for)
operations
|
(4,211)
|
35,212
|
(39,423)
|
(8,317)
|
32,482
|
(40,799)
|
|
|
|
Operating Data
(Gibraltar - 100%
basis)
|
Three months ended June
30,
|
Six months ended June
30,
|
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
Tons mined
(millions)
|
26.2
|
24.0
|
2.2
|
47.7
|
45.0
|
2.7
|
Tons milled
(millions)
|
7.2
|
8.0
|
(0.8)
|
14.7
|
15.8
|
(1.1)
|
Production (million pounds
Cu)
|
30.6
|
39.8
|
9.2
|
59.5
|
68.2
|
(8.7)
|
Sales (million pounds
Cu)
|
30.3
|
42.2
|
(11.9)
|
60.8
|
67.7
|
(6.9)
|
|
|
|
|
|
|
|
*Non-GAAP performance
measure. See end of news
release.
|
|
|
|
|
REVIEW OF OPERATIONS
Gibraltar mine (75%
Owned)
|
|
|
|
|
|
|
Operating Data (100%
basis)
|
|
Q2
2016
|
Q1
2016
|
Q4
2015
|
Q3
2015
|
Q2
2015
|
Tons mined
(millions)
|
|
26.2
|
21.5
|
21.3
|
27.4
|
24.0
|
Tons milled
(millions)
|
|
7.2
|
7.5
|
7.3
|
7.5
|
8.0
|
Strip
ratio
|
|
2.4
|
1.7
|
2.4
|
2.3
|
2.5
|
Site operating cost per ton milled
(CAD$)
|
|
$9.67
|
$9.59
|
$9.41
|
$10.36
|
$9.89
|
Copper
concentrate
|
|
|
|
|
|
|
|
Grade
(%)
|
|
0.252
|
0.228
|
0.269
|
0.308
|
0.285
|
|
Recovery
(%)
|
|
84.1
|
84.4
|
84.9
|
87.4
|
85.6
|
|
Production (million pounds
Cu)
|
|
30.6
|
28.8
|
33.1
|
40.5
|
39.2
|
|
Sales (million pounds
Cu)
|
|
30.3
|
30.5
|
33.7
|
40.5
|
41.8
|
|
Inventory (million pounds
Cu)
|
|
2.1
|
1.9
|
3.4
|
3.9
|
3.8
|
Copper
cathode
|
|
|
|
|
|
|
|
Production (million
pounds)
|
|
-
|
-
|
-
|
0.4
|
0.6
|
|
Sales (million
pounds)
|
|
-
|
-
|
-
|
0.6
|
0.4
|
Molybdenum
concentrate
|
|
|
|
|
|
|
|
Production (thousand pounds
Mo)
|
|
-
|
-
|
-
|
85
|
474
|
|
Sales (thousand pounds
Mo)
|
|
-
|
-
|
-
|
233
|
391
|
Per unit data (US$ per pound
produced)*
|
|
|
|
|
|
|
|
Site operating
costs*
|
|
$1.77
|
$1.81
|
$1.55
|
$1.45
|
$1.63
|
|
By-product
credits*
|
|
(0.03)
|
(0.03)
|
(0.03)
|
(0.03)
|
(0.09)
|
Site operating, net of by-product
credits*
|
|
$1.74
|
$1.78
|
$1.52
|
$1.42
|
$1.54
|
Off-property
costs
|
|
0.33
|
0.33
|
0.33
|
0.34
|
0.43
|
Total operating costs
(C1)*
|
|
$2.07
|
$2.11
|
$1.85
|
$1.76
|
$1.97
|
|
|
|
|
|
|
|
*Non-GAAP performance measure. See end of news
release.
|
|
|
|
OPERATIONS ANALYSIS
Second quarter results
During the second quarter of 2016, Gibraltar milled 7.2 million tons of ore
averaging 79,400 tons per day or 93% of design capacity.
Gibraltar mined 26.2 million tons
during the quarter, resulting in a strip ratio of 2.4 which is
above the life of mine average. Backfilling of a mined out
section of the Granite Pit commenced in mid-March and resulted in
highly productive short waste hauls. A decision was made to
take advantage of the higher productivities and mine additional
waste tons this quarter instead of idling equipment and reducing
spending. The higher stripping rates will provide access to
higher grade ore earlier than originally planned.
Copper production in the second quarter of 2016 was 30.6 million
pounds, higher than the first quarter of 2016 as a result of the
expected increase in copper head grade which was partially offset
by lower mill throughput and recoveries. The molybdenum circuit has
remained idled since the third quarter of 2015 due to the low
market price for molybdenum.
Site operating cost per ton milled* was CAD$9.67 in the second quarter of 2016 which is
in line with the previous two quarters. Cost control initiatives
which were implemented during 2015, including mine plan
modifications to reduce waste stripping requirements, workforce
reductions and vendor initiatives have continued to benefit
operating costs in 2016.
Site operating costs per pound produced* decreased to
US$1.74 in the second quarter of 2016
from US$1.78 in the first quarter of
2016 primarily as a result of increased copper
production.
New long-term contracts for ocean freight and treatment and
refining costs contributed to reduced off-property costs of
US$0.33 per pound produced, down
significantly from US$0.43 per pound
in the second quarter of 2015. The Company's off-property costs are
driven by sales volumes rather than production and sales volumes
were lower than production volumes in the second quarter of
2016.
Total operating costs (C1) per pound* decreased to US$2.07 from US$2.11 in the first quarter of 2016 as a result
of increased copper production.
On April 11, 2016, the Company
announced that it had signed a five-year cost deferral agreement
with BC Hydro for up to 75% of the power consumed at the
Gibraltar mine. The cost deferral
program was effective March 1,
2016. Gibraltar deferred
electricity payments of $4.8 million
under this program in the second quarter, which is equivalent to
US$0.16 per pound of copper
produced.
GIBRALTAR
OUTLOOK
Gibraltar's copper production
for the year is expected to be in the range of 130 to 140 million
pounds. Average head grade is expected to be 0.24% and 0.30%
for the third and fourth quarters, respectively, and the higher
head grades are expected to continue into 2017.
Management is currently reviewing options to re-start the
molybdenum circuit at Gibraltar,
in light of the recent increase in molybdenum prices.
Overall, Gibraltar has achieved
a stable level of operations consistent with the updated reserve
model published in 2015 and the Company continues to focus on
further improvements to operating practices to reduce unit costs.
The ability to short haul waste is expected to continue into the
third quarter, which will improve haul truck productivities and the
overall productivity of the mine. Additionally we do not anticipate
any major capital spending before the end of the year.
The Canadian dollar is expected to remain at a substantial
discount to the US dollar, and a weak Canadian dollar would
contribute to improved operating margins at Gibraltar as approximately 80% of mine
operating costs are paid in Canadian dollars.
*Non-GAAP performance measure. See end of news
release.
|
REVIEW OF PROJECTS
Taseko's strategy has been to grow the Company by leveraging
cash flow from the Gibraltar Mine to assemble and develop a
pipeline of projects. We continue to believe this will generate the
best, long-term returns for shareholders. Our development projects
are located in British Columbia
and Arizona and represent a
diverse range of metals, including gold, copper and niobium. In
light of current market conditions, the Company has taken a prudent
approach and minimized spending on development projects. Total
expenditures on projects in the second quarter of 2016 consisted of
$1.2 million at the Florence Copper
project, $0.1 million on the Aley
Project, and $0.6 million on New
Prosperity.
Florence Copper Project
The Florence Copper project is currently in the final stages of
permitting for the Production Test Facility ("PTF"). The PTF will
include a well field comprised of thirteen (four injection and nine
recovery) commercial scale production wells and numerous
monitoring, observation and point of compliance wells, and also an
integrated demonstration scale solvent extraction and
electrowinning plant.
The Company is continuing to work with the Arizona Department of
Environmental Quality ("ADEQ") in connection with the amendment to
the Temporary Aquifer Protection Permit ("APP"), and with the U.S.
Environmental Protection Agency in connection with the Underground
Injection Control permit. These are the two permits required for
construction and operation of the PTF. On April 14, 2016, the ADEQ announced its intention
to issue the significant amendment to the APP. This decision
confirms the ADEQ has completed its substantive review and is
satisfied with the conditions under which the PTF can operate once
the final permit is issued. The decision by the ADEQ to move the
permit amendment forward into the 30-day public comment period and
the subsequent completion of the public comment period in May
2016 marks an important milestone for
the Company. The timing of both these final permits is somewhat
uncertain; however, the Company's expectation is that they could be
in hand in the second half of 2016.
New Prosperity Project
On February 12, 2016, Taseko
announced that it had filed a civil claim in the BC Supreme Court
against the Canadian federal government. The claim seeks damages in
relation to the February 25, 2014
decision concerning the New Prosperity Project in that the
Government of Canada and its
agents failed to meet the legal duties that were owed to Taseko and
that in doing so they caused and continue to cause damages,
expenses and loss to Taseko.
On July 20, 2016, Taseko announced
that the British Columbia Environmental Assessment Office is
proceeding with Taseko's request to amend the environmental
assessment certificate for its New Prosperity Project. In addition
to this undertaking, Taseko will be filing a Notice of Work ("NOW")
with the Ministry of Energy & Mines which will allow the
Company to gather information to advance mine permitting under the
British Columbia Mines Act. Taseko looks forward to working
with the six local Tsilhqot'in First Nation bands as represented by
the Tsilhqot'in National Government on the consultative and
substantive aspects of the NOW as per the terms in the 2012
settlement agreement.
The Company will host a
telephone conference call and live webcast on Wednesday, July 27 at
11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these
results. The conference call may be accessed by dialing (877)
303-9079 in Canada and the United States, or (970) 315-0461
internationally. The conference call will be archived for later
playback until August 3, 2016 and can be accessed by dialing (855)
859-2056 in Canada and the United States, or (404) 537-3406
internationally and using the passcode
37986608.
|
Russell Hallbauer
President and CEO
No regulatory authority has approved or
disapproved of the information in this news release.
NON-GAAP PERFORMANCE MEASURES
This document includes certain non-GAAP performance measures
that do not have a standardized meaning prescribed by IFRS. These
measures may differ from those used by, and may not be comparable
to such measures as reported by, other issuers. The Company
believes that these measures are commonly used by certain
investors, in conjunction with conventional IFRS measures, to
enhance their understanding of the Company's performance. These
measures have been derived from the Company's financial statements
and applied on a consistent basis. The following tables below
provide a reconciliation of these non-GAAP measures to the most
directly comparable IFRS measure.
Total operating costs and site operating costs, net of
by-product credits
Total costs of sales include all costs absorbed into inventory,
as well as transportation costs. Site operating costs is calculated
by removing net changes in inventory and depletion and amortization
and transportation costs from cost of sales. Site operating costs,
net of by-product credits is calculated by removing by-product
credits from the site operating costs. Site operating costs, net of
by-product credits per pound are calculated by dividing the
aggregate of the applicable costs by copper pounds produced. Total
operating costs per pound is the sum of site operating costs, net
of by-product credits and off-property costs divided by the copper
pounds produced. By-product credits are calculated based on actual
sales of molybdenum and silver during the period divided by the
total pounds of copper produced during the period. These measures
are calculated on a consistent basis for the periods presented.
|
Three Months ended
June
30,
|
Six Months ended
June
30,
|
(Cdn$ in thousands, unless
otherwise indicated) – 75%
basis
|
2016
|
2015
|
2016
|
2015
|
Cost of
sales
|
72,392
|
78,744
|
144,389
|
141,788
|
Less:
|
|
|
|
|
|
Depletion and
amortization
|
(14,138)
|
(12,257)
|
(27,648)
|
(22,565)
|
|
Net change in
inventory
|
(1,833)
|
(1,653)
|
(2,920)
|
5,408
|
|
Transportation
costs
|
(4,012)
|
(5,239)
|
(7,605)
|
(8,856)
|
Site operating
costs
|
52,409
|
59,595
|
106,216
|
115,775
|
Less by-product
credits:
|
|
|
|
|
|
Molybdenum
|
-
|
(2,212)
|
-
|
(4,810)
|
|
Silver
|
(926)
|
(1,035)
|
(1,842)
|
(1,739)
|
Site operating costs, net
of by-product
credits
|
51,483
|
56,348
|
104,374
|
109,226
|
Total copper produced
(thousand
pounds)
|
22,973
|
29,857
|
44,588
|
51,130
|
Total costs per pound
produced
|
2.24
|
1.89
|
2.34
|
2.14
|
Average exchange rate for
the period
(CAD/USD)
|
1.29
|
1.23
|
1.33
|
1.24
|
Site operating costs,
net of by-product credits (US$ per
pound)
|
1.74
|
1.54
|
1.76
|
1.73
|
Site operating costs, net
of by-product
credits
|
51,483
|
56,348
|
104,374
|
109,226
|
Add off-property
costs:
|
|
|
|
|
|
Treatment and refining
costs
|
5,765
|
10,497
|
12,079
|
17,267
|
|
Transportation
costs
|
4,012
|
5,239
|
7,605
|
8,856
|
Total operating
costs
|
61,260
|
72,084
|
124,058
|
135,349
|
Total operating costs
(C1) (US$ per
pound)
|
2.07
|
1.97
|
2.09
|
2.14
|
Adjusted net earnings (loss)
Adjusted net earnings (loss) remove the effect of the following
transactions from net earnings as reported under IFRS:
- Unrealized gains/losses on derivative instruments;
- Unrealized foreign currency gains/losses; and
- Non-recurring transactions, including non-recurring tax
adjustments.
Management believes these transactions do not reflect the
underlying operating performance of our core mining business and
are not necessarily indicative of future operating results.
Furthermore, unrealized gains/losses on derivative
instruments, changes in the fair value of financial instruments,
and unrealized foreign currency gains/losses are not necessarily
reflective of the underlying operating results for the reporting
periods presented.
|
|
|
|
Three months ended
June
30,
|
Six months ended
June
30,
|
($ in thousands, except per
share
amounts)
|
2016
|
2015
|
2016
|
2015
|
Net earnings
(loss)
|
(19,384)
|
4,017
|
(20,899)
|
(21,189)
|
|
Unrealized loss on
derivatives
|
290
|
490
|
991
|
2,241
|
|
Unrealized foreign exchange
(gain)
loss
|
(2,052)
|
(3,047)
|
(21,677)
|
18,422
|
|
Other non-recurring
expenses*
|
1,978
|
-
|
5,408
|
-
|
|
Estimated tax effect of
adjustments
|
(590)
|
141
|
(1,664)
|
(307)
|
Adjusted net earnings
(loss)
|
(19,758)
|
1,601
|
(37,841)
|
(833)
|
Adjusted
EPS
|
(0.09)
|
0.01
|
(0.17)
|
-
|
|
*
Other non-recurring expenses includes legal and other advisory
costs associated with the special
shareholder meeting, the proxy contest and related litigation and
non-recurring financing
costs.
|
EBITDA and adjusted EBITDA
EBITDA represents net earnings before interest, income taxes,
and depreciation. EBITDA is presented because it is an
important supplemental measure of our performance and is frequently
used by securities analysts, investors and other interested parties
in the evaluation of companies in the industry, many of which
present EBITDA when reporting their results. Issuers of "high
yield" securities also present EBITDA because investors, analysts
and rating agencies consider it useful in measuring the ability of
those issuers to meet debt service obligations. The Company
believes EBITDA is an appropriate supplemental measure of debt
service capacity, because cash expenditures on interest are, by
definition, available to pay interest, and tax expense is inversely
correlated to interest expense because tax expense goes down as
deductible interest expense goes up; depreciation is a non-cash
charge.
Adjusted EBITDA is presented as a further supplemental measure
of the Company's performance and ability to service debt. Adjusted
EBITDA is prepared by adjusting EBITDA to eliminate the impact of a
number of items that are not considered indicative of ongoing
operating performance.
Adjusted EBITDA is calculated by adding to EBITDA certain items
of expense and deducting from EBITDA certain items of income that
are not likely to recur or are not indicative of the Company's
future operating performance consisting of:
- Unrealized gains/losses on derivative instruments;
- Unrealized foreign exchange gains/losses; and
- Non-recurring transactions.
While some of the adjustments are recurring, other non-recurring
expenses do not reflect the underlying performance of the Company's
core mining business and are not necessarily indicative of future
results. Furthermore, unrealized gains/losses on derivative
instruments, foreign currency translation gains/losses and changes
in the fair value of financial instruments are not necessarily
reflective of the underlying operating results for the reporting
periods presented.
|
|
|
|
Three months ended
June
30,
|
Six months ended
June
30,
|
($ in thousands, except per
share
amounts)
|
2016
|
2015
|
2016
|
2015
|
Net earnings
(loss)
|
(19,384)
|
4,017
|
(20,899)
|
(21,189)
|
Add:
|
|
|
|
|
|
Depletion and
amortization
|
14,136
|
12,277
|
27,733
|
22,611
|
|
Amortization of stock-based
compensation
|
406
|
1,144
|
2,047
|
1,350
|
|
Finance
expense
|
7,180
|
6,247
|
14,015
|
12,609
|
|
Finance
income
|
(252)
|
(167)
|
(508)
|
(824)
|
|
Income tax expense
(recovery)
|
(9,944)
|
2,441
|
(19,244)
|
(594)
|
EBITDA
|
(7,858)
|
25,959
|
3,144
|
13,963
|
|
Adjustments:
|
|
|
|
|
|
Unrealized loss on
derivative
instruments
|
290
|
490
|
991
|
2,241
|
|
Unrealized foreign exchange
(gain)
loss
|
(2,052)
|
(3,047)
|
(21,677)
|
18,422
|
|
Other non-recurring
expenses*
|
1,978
|
-
|
5,408
|
-
|
Adjusted
EBITDA
|
(7,642)
|
23,402
|
(12,134)
|
34,626
|
|
* Other
non-recurring expenses includes legal and other advisory costs
associated with the
special shareholder meeting, the proxy contest and related
litigation and non-recurring financing
costs.
|
Earnings from mining operations before depletion and
amortization
Earnings from mining operations before depletion and
amortization is earnings from mining operations with depletion and
amortization added back. The Company discloses this measure, which
has been derived from our financial statements and applied on a
consistent basis, to provide assistance in understanding the
results of the Company's operations and financial position and it
is meant to provide further information about the financial results
to investors.
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
(Cdn$ in thousands, except
per share
amounts)
|
2016
|
2015
|
2016
|
2015
|
Earnings (loss) from
mining
operations
|
(17,302)
|
14,010
|
(31,116)
|
6,031
|
Add:
|
|
|
|
|
|
Depletion and
amortization
|
14,138
|
12,257
|
27,648
|
22,565
|
Earnings (loss) from
mining operations before
depletion and
amortization
|
(3,164)
|
26,267
|
(3,468)
|
28,596
|
Site operating costs per ton milled
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
(Cdn$ in thousands, except
per share
amounts)
|
2016
|
2015
|
2016
|
2015
|
Site operating costs
(included in cost of
sales)
|
52,409
|
59,595
|
106,216
|
115,775
|
|
|
|
|
|
Tons milled (thousands)
(75%
basis)
|
5,417
|
6,028
|
11,024
|
11,841
|
Site operating costs per
ton
milled
|
$9.67
|
$9.89
|
$9.63
|
$9.78
|
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" that were
based on Taseko's expectations, estimates and projections as of the
dates as of which those statements were made. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "outlook", "anticipate",
"project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking statements. These included but are not limited
to:
- uncertainties and costs related to the Company's exploration
and development activities, such as those associated with
continuity of mineralization or determining whether mineral
resources or reserves exist on a property;
- uncertainties related to the accuracy of our estimates of
mineral reserves, mineral resources, production rates and timing of
production, future production and future cash and total costs of
production and milling;
- uncertainties related to feasibility studies that provide
estimates of expected or anticipated costs, expenditures and
economic returns from a mining project;
- uncertainties related to our ability to complete the mill
upgrade on time estimated and at the scheduled cost;
- uncertainties related to the ability to obtain necessary
licenses permits for development projects and project delays due to
third party opposition;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and
government policies affecting our exploration and development
activities and mining operations, particularly laws, regulations
and policies;
- changes in general economic conditions, the financial markets
and in the demand and market price for copper, gold and other
minerals and commodities, such as diesel fuel, steel, concrete,
electricity and other forms of energy, mining equipment, and
fluctuations in exchange rates, particularly with respect to the
value of the U.S. dollar and Canadian dollar, and the continued
availability of capital and financing;
- the effects of forward selling instruments to protect against
fluctuations in copper prices and exchange rate movements and the
risks of counterparty defaults, and mark to market risk;
- the risk of inadequate insurance or inability to obtain
insurance to cover mining risks;
- the risk of loss of key employees; the risk of changes in
accounting policies and methods we use to report our financial
condition, including uncertainties associated with critical
accounting assumptions and estimates;
- environmental issues and liabilities associated with mining
including processing and stock piling ore; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate mines, or environmental hazards, industrial accidents or
other events or occurrences, including third party interference
that interrupt the production of minerals in our mines.
For further information on Taseko, investors should review the
Company's annual Form 40-F filing with the United States Securities
and Exchange Commission www.sec.gov and home jurisdiction filings
that are available at www.sedar.com.
SOURCE Taseko Mines Limited