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, Aug. 2, 2017 /CNW/ - Taseko Mines Limited
(TSX: TKO; NYSE American: TGB) ("Taseko" or the "Company") reports
cash flow from operations of $62.3
million in the second quarter of 2017, earnings from mining
operations before depletion and amortization* of $46.5 million and adjusted EBITDA* of
$42.8 million.
Russell Hallbauer, President
& CEO commented, "In the first half of 2017 we built on the
successes realized in the fourth quarter of 2016, and capitalized
on rising copper prices. Over the past nine months we have
generated $192 million of cash flow
from operations and $147 million in
earnings from mining operations before depletion and amortization.
Over the same period, site spending has been consistent and in the
second quarter site operating costs, net of by-products was
US$0.97 per pound with C1* costs of
US$1.31 per pound."
"During the second quarter we completed a US$250 million debt offering. We used the
proceeds from this offering, along with a portion of our cash
balance, to repay approximately US$275
million of debt which was due in 2019. We felt it was
important to take advantage of a healthy bond market to reduce our
overall debt and extend the due date to 2022," continued Mr.
Hallbauer.
Mr. Hallbauer added, "With the copper price recently increasing
to two-year highs, combined with nearly $100
million of cash on hand plus our long-term debt reduced and
termed out five years, we are in a very good position to continue
investing in and advancing our pipeline of projects."
"For the past four weeks, uncontrolled wildfires resulted in
evacuation orders for a number of communities in the Cariboo where
most of our Gibraltar employees
reside. These evacuation orders have affected the complement of
personnel who operate Gibraltar,
and access to and from the mine was also significantly curtailed
during this period. This has resulted in reduced production
for periods of time as well as a complete mine shutdown for several
days during July. Mining and milling operations are beginning to
return to normal as some evacuation orders have been lifted over
the past week. Third quarter copper sales volumes are expected to
be up to 10% lower than the second quarter of 2017. The situation
continues to evolve and we are hopeful that the worst is behind
us," concluded Mr. Hallbauer.
*Non-GAAP performance
measure. See end of news release.
|
Second Quarter Highlights
- Earnings from mining operations before depletion and
amortization* were $46.5 million;
- Cashflow from operations was $62.3
million for the second quarter;
- Adjusted net income* for the quarter was $14.3 million (or $0.06 per share) and net income was $5.2 million (or $0.02 per share);
- Site operating costs, net of by-product credits* were
US$0.97 per pound produced, down 44%
from the second quarter of 2016;
- The Gibraltar Mine produced 39.4 million pounds of copper and
0.8 million pounds of molybdenum (100% basis) at a total operating
cost (C1)* of US$1.31 per pound;
- Total sales for the second quarter were 40.7 million pounds of
copper and 0.8 million pounds of molybdenum;
- On April 12, 2017, the Company
announced that a new long-term agreement was ratified by its
unionized employees at Gibraltar.
The new agreement will be effective through May 31, 2021;
- On June 14, 2017, the Company
completed an offering of US$250
million aggregate principal amount of 8.75% senior secured
notes due 2022. The Company used the net proceeds of the offering
and $72 million of its existing cash
balance, to fund the redemption of its US$200 million senior notes due 2019 and to repay
its senior secured credit facility (due March 2019) and the related copper call
option;
- Long-term debt and other financial liabilities have been
reduced by $63 million during the
first six months of 2017, and the maturity date of long-term debt
has been extended from 2019 to 2022; and
- The Company's cash balance at June 30,
2017 was $97 million, which
was after the $72 million used for
the debt refinancing.
Subsequent Events
- On July 18, 2017, the Company
received approval from the Province of British Columbia to undertake a site
investigation program to conduct exploratory work at the New
Prosperity Gold-Copper project site. The Notice of Work ("NOW"),
which is a multi-year permit, will allow the Company to gather
information for the purpose of advancing mine permitting under the
British Columbia Mines Act; and
- For the past four weeks, uncontrolled wildfires resulted in
evacuation orders for a number of communities in the Cariboo where
most of our Gibraltar employees
reside. These evacuation orders have affected the complement of
personnel who operate Gibraltar,
and access to and from the mine was also significantly curtailed
during this period. This has resulted in reduced production for
periods of time as well as a complete mine shutdown for several
days during July. Mining and milling operations are beginning to
return to normal as some evacuation orders have been lifted over
the past week. Third quarter copper sales volumes are expected to
be up to 10% lower than the second quarter of 2017.
*Non-GAAP performance
measure. See end of news release.
|
HIGHLIGHTS
Financial
Data
|
Three months ended
June 30,
|
Six months ended
June 30,
|
(Cdn$ in thousands,
except for per share amounts)
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Revenues
|
99,994
|
55,090
|
44,904
|
204,383
|
113,273
|
91,110
|
Earnings (loss) from
mining operations before depletion and amortization*
|
46,460
|
(3,164)
|
49,624
|
99,887
|
(3,468)
|
103,355
|
Earnings (loss) from
mining operations
|
34,661
|
(17,302)
|
51,963
|
78,511
|
(31,116)
|
109,627
|
Net income
(loss)
|
5,247
|
(19,384)
|
24,631
|
21,726
|
(20,899)
|
42,625
|
|
Per share - basic
("EPS")
|
0.02
|
(0.09)
|
0.11
|
0.10
|
(0.09)
|
0.19
|
Adjusted net income
(loss)*
|
14,305
|
(19,758)
|
34,063
|
29,560
|
(37,841)
|
67,401
|
|
Per share - basic
("adjusted EPS")*
|
0.06
|
(0.09)
|
0.15
|
0.13
|
(0.17)
|
0.30
|
EBITDA*
|
43,805
|
(7,858)
|
51,663
|
92,950
|
3,144
|
89,806
|
Adjusted
EBITDA*
|
42,820
|
(7,642)
|
50,462
|
90,754
|
(12,134)
|
102,888
|
Cash flows provided
by (used for) operations
|
62,291
|
(4,211)
|
66,502
|
142,056
|
(8,317)
|
150,373
|
|
|
|
Operating Data
(Gibraltar - 100% basis)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Tons mined
(millions)
|
21.1
|
26.2
|
(5.1)
|
42.9
|
47.7
|
(4.8)
|
Tons milled
(millions)
|
7.5
|
7.2
|
0.3
|
14.8
|
14.7
|
0.1
|
Production (million
pounds Cu)
|
39.4
|
30.6
|
8.8
|
80.6
|
59.5
|
21.1
|
Sales (million pounds
Cu)
|
40.7
|
30.3
|
10.4
|
81.5
|
60.8
|
20.7
|
|
*Non-GAAP performance
measure. See end of news release.
|
REVIEW OF OPERATIONS
Gibraltar Mine
(75% Owned)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating data
(100% basis)
|
|
Q2
2017
|
Q1
2017
|
Q4
2016
|
Q3
2016
|
Q2
2016
|
Tons mined
(millions)
|
|
21.1
|
21.8
|
18.5
|
21.5
|
26.2
|
Tons milled
(millions)
|
|
7.5
|
7.3
|
7.3
|
7.4
|
7.2
|
Strip
ratio
|
|
2.8
|
2.4
|
1.1
|
1.0
|
2.4
|
Site operating cost
per ton milled (CAD$)
|
|
$7.67
|
$8.59
|
$9.13
|
$9.47
|
$9.67
|
Copper
concentrate
|
|
|
|
|
|
|
|
Grade
(%)
|
|
0.309
|
0.328
|
0.319
|
0.259
|
0.252
|
|
Recovery
(%)
|
|
85.2
|
85.9
|
87.0
|
85.9
|
84.1
|
|
Production (million
pounds Cu)
|
|
39.4
|
41.3
|
40.7
|
33.1
|
30.6
|
|
Sales (million pounds
Cu)
|
|
40.7
|
40.8
|
40.4
|
29.8
|
30.3
|
|
Inventory (million
pounds Cu)
|
|
4.6
|
5.9
|
5.6
|
5.4
|
2.1
|
Molybdenum
concentrate
|
|
|
|
|
|
|
|
Production (thousand
pounds Mo)
|
|
789
|
866
|
764
|
185
|
-
|
|
Sales (thousand
pounds Mo)
|
|
794
|
859
|
798
|
105
|
-
|
Per unit data (US$
per pound produced)*
|
|
|
|
|
|
|
|
Site operating
costs*
|
|
$1.08
|
$1.15
|
$1.23
|
$1.64
|
$1.77
|
|
By-product
credits*
|
|
(0.11)
|
(0.15)
|
(0.11)
|
(0.06)
|
(0.03)
|
Site operating costs,
net of by-product credits*
|
|
$0.97
|
$1.00
|
$1.12
|
$1.58
|
$1.74
|
Off-property
costs
|
|
0.34
|
0.33
|
0.36
|
0.31
|
0.33
|
Total operating costs
(C1)*
|
|
$1.31
|
$1.33
|
$1.48
|
$1.89
|
$2.07
|
OPERATIONS ANALYSIS
Second quarter results
Copper head grade at Gibraltar
was 0.309% in the second quarter. Copper recovery for the quarter
was 85% and was negatively impacted due to periodic occurrences of
oxidized ore. Combined with strong mill throughput of 7.5 million
tons of ore, the mine produced 39.4 million pounds of
copper.
A total of 21.1 million tons were mined during the quarter at a
strip ratio of 2.8 to 1.Waste stripping costs of $18.2 million (75% basis) were capitalized in the
quarter primarily related to the Granite pit. During the quarter,
approximately 1.9 million ore tons milled was drawn from the ore
stockpile as planned. Site operating cost per ton milled* was
$7.67 in the second quarter of 2017,
which is lower than recent quarters due to the increased
capitalization of stripping costs.
Site operating costs per pound produced* decreased to
US$1.08 in the second quarter of 2017
from US$1.15 in the first quarter of
2017.
The molybdenum circuit continued to operate at design capacity
in the period. A total of 0.8 million pounds of molybdenum were
produced, with recoveries averaging 48%.
*Non-GAAP performance
measure. See end of news release.
|
OPERATIONS ANALYSIS - CONTINUED
By-product credits per pound produced* decreased to US$0.11 in the second quarter of 2017 from
US$0.15 in the first quarter of 2017.
The decrease was a result of negative provisional price adjustments
for molybdenum and lower molybdenum sales volume in the second
quarter.
Off-property costs per pound produced* were US$0.34 for the second quarter of 2017, which is
consistent with recent periods.
Total operating costs (C1) per pound* decreased to US$1.31, a 67% reduction from the second quarter
of 2016 due to increased copper production, higher molybdenum
by-product credits due to the restart of the moly circuit in
September 2016, and increased
capitalized stripping costs in the current period.
GIBRALTAR
OUTLOOK
Overall, Gibraltar has
maintained a stable level of operations and management continues to
focus on further improvements to operating practices to reduce unit
costs. Copper prices have continued to strengthen in the third
quarter of 2017, increasing to US$2.86 per pound as of August 1, 2017, which is 11% higher than the
average LME copper price during the second quarter.
A weak Canadian dollar contributes to improved operating margins
at Gibraltar as approximately 80%
of mine operating costs are paid in Canadian dollars. The Canadian
dollar strengthened by approximately 2% during the second quarter
of 2017, and has strengthened by a further 3% since June 30, 2017.
For the past four weeks, uncontrolled wildfires resulted in
evacuation orders for a number of communities in the Cariboo where
most of our Gibraltar employees
reside. These evacuation orders have affected the complement of
personnel who operate Gibraltar,
and access to and from the mine was also significantly curtailed
during this period. This has resulted in reduced production for
periods of time as well as a complete mine shutdown for several
days during July. Mining and milling operations are beginning to
return to normal as some evacuation orders have been lifted over
the past week. Third quarter copper sales volumes are expected to
be up to 10% lower than the second quarter of 2017.
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, molybdenum and
niobium. During the second quarter of 2017, total expenditure of
$4.6 million was incurred on the
Florence Copper, Aley and New Prosperity projects. Taseko will
continue to take a prudent approach to spending on development
projects.
Florence Copper
In January 2017, the Company
announced that completed technical work on the Florence property
has resulted in a significant improvement in project economics. On
February 28, 2017, the NI 43-101
technical report documenting these results was filed on
www.sedar.com.
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 solvent extraction and electrowinning plant.
*Non-GAAP performance
measure. See end of news release.
|
REVIEW OF PROJECTS - CONTINUED
New Prosperity
On July 18, 2017, Taseko received
approval from the Province of British
Columbia to undertake a site investigation program to
conduct exploratory work at the New Prosperity project site. The
Province issued a Notice of Work, which is a multi-year permit from
the Ministry of Energy & Mines that allows the Company to
gather information for the purpose of advancing mine permitting
under the British Columbia Mines Act.
Taseko is proceeding with its request to amend the British Columbia environmental assessment
certificate for the New Prosperity Project.
The two Judicial Reviews initiated by Taseko were heard in
federal court over a five day period in the week of January 30, 2017. Both Judicial Reviews focus on
the principles of administrative and procedural fairness. Taseko's
allegation is that the Government of Canada, through the conduct of the
environmental assessment and the decisions which resulted from it,
failed in their obligation to uphold those fundamental principles.
A decision is expected from the court within six to nine
months.
Note: Gibraltar is a
contractual, unincorporated joint venture between Taseko Mines
Limited (75% interest) and Cariboo Copper Corp. (25% interest). All
production and sales figures are reported on a 100% basis, unless
otherwise noted.
Taseko will host a
conference call on Thursday, August 3, 2017 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.
Alternatively, a live and archived webcast will also be available
at tasekomines.com. The conference call will be archived for later
playback until August 10, 2017 and can be accessed by dialing (855)
859-2056 in Canada and the United States, or (404) 537-3406
internationally and using the passcode 86630167.
|
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 (net of treatment costs) 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
|
2017
|
2016
|
2017
|
2016
|
Cost of
sales
|
65,333
|
72,392
|
125,872
|
144,389
|
Less:
|
|
|
|
|
|
Depletion and
amortization
|
(11,799)
|
(14,138)
|
(21,376)
|
(27,648)
|
|
Net change in
inventory
|
(4,998)
|
(1,833)
|
(3,593)
|
(2,920)
|
|
Transportation
costs
|
(5,492)
|
(4,012)
|
(10,709)
|
(7,605)
|
Site operating
costs
|
43,044
|
52,409
|
90,194
|
106,216
|
Less by-product
credits:
|
|
|
|
|
|
Molybdenum, net of
treatment costs
|
(4,335)
|
-
|
(10,142)
|
-
|
|
Silver, excluding
amortization of deferred revenue
|
(82)
|
(926)
|
(530)
|
(1,842)
|
Site operating costs,
net of by-product credits
|
38,627
|
51,483
|
79,522
|
104,374
|
Total copper produced
(thousand pounds)
|
29,531
|
22,973
|
60,474
|
44,588
|
Total costs per pound
produced
|
1.31
|
2.24
|
1.31
|
2.34
|
Average exchange rate
for the period (CAD/USD)
|
1.34
|
1.29
|
1.33
|
1.33
|
Site operating
costs, net of by-product credits (US$ per pound)
|
0.97
|
1.74
|
0.99
|
1.76
|
Site operating costs,
net of by-product credits
|
38,627
|
51,483
|
79,522
|
104,374
|
Add off-property
costs:
|
|
|
|
|
|
Treatment and
refining costs of copper concentrate
|
8,066
|
5,765
|
16,522
|
12,079
|
|
Transportation
costs
|
5,492
|
4,012
|
10,709
|
7,605
|
Total operating
costs
|
52,185
|
61,260
|
106,753
|
124,058
|
Total operating
costs (C1) (US$ per pound)
|
1.31
|
2.07
|
1.32
|
2.09
|
|
|
|
|
|
NON-GAAP PERFORMANCE MEASURES - CONTINUED
Adjusted net income (loss)
Adjusted net income (loss) remove the effect of the following
transactions from net income as reported under IFRS:
- Unrealized gains/losses on copper put options;
- Unrealized foreign currency gains/losses;
- Loss on settlement of long-term debt; and
- Non-recurring transactions, including related 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)
|
2017
|
2016
|
2017
|
2016
|
Net income
(loss)
|
5,247
|
(19,384)
|
21,726
|
(20,899)
|
|
Unrealized (gain)
loss on copper put options
|
373
|
(163)
|
425
|
-
|
|
Loss on copper call
option
|
4,891
|
453
|
6,305
|
991
|
|
Unrealized foreign
exchange gain
|
(6,249)
|
(2,052)
|
(8,926)
|
(21,677)
|
|
Loss on settlement of
long-term debt
|
13,102
|
-
|
13,102
|
-
|
|
Other non-recurring
expenses*
|
-
|
1,978
|
-
|
5,408
|
|
Estimated tax effect
of adjustments
|
(3,059)
|
(590)
|
(3,072)
|
(1,664)
|
Adjusted net
income (loss)
|
14,305
|
(19,758)
|
29,560
|
(37,841)
|
Adjusted
EPS
|
0.06
|
(0.09)
|
0.13
|
(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 other non-recurring financing costs.
|
EBITDA and adjusted EBITDA
EBITDA represents net income 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.
NON-GAAP PERFORMANCE MEASURES - CONTINUED
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 copper put options;
- Loss on copper call option;
- 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, and unrealized foreign currency translation
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)
|
2017
|
2016
|
2017
|
2016
|
Net income
(loss)
|
5,247
|
(19,384)
|
21,726
|
(20,899)
|
Add:
|
|
|
|
|
|
Depletion and
amortization
|
11,799
|
14,136
|
21,376
|
27,733
|
|
Amortization of
share-based compensation expense
|
170
|
406
|
3,529
|
2,047
|
|
Finance
expense
|
21,319
|
7,180
|
29,353
|
14,015
|
|
Finance
income
|
(470)
|
(252)
|
(801)
|
(508)
|
|
Income tax expense
(recovery)
|
5,740
|
(9,944)
|
17,767
|
(19,244)
|
EBITDA
|
43,805
|
(7,858)
|
92,950
|
3,144
|
Adjustments:
|
|
|
|
|
|
Unrealized (gain)
loss on copper put options
|
373
|
(163)
|
425
|
-
|
|
Loss on copper call
option
|
4,891
|
453
|
6,305
|
991
|
|
Unrealized foreign
exchange gain
|
(6,249)
|
(2,052)
|
(8,926)
|
(21,677)
|
|
Other non-recurring
expenses*
|
-
|
1,978
|
-
|
5,408
|
Adjusted
EBITDA
|
42,820
|
(7,642)
|
90,754
|
(12,134)
|
|
* Other non-recurring
expenses includes legal and other advisory costs associated with
the special shareholder meeting, the proxy contest and related
litigation, and other non-recurring financing costs.
|
NON-GAAP PERFORMANCE MEASURES - CONTINUED
Earnings (loss) from mining operations before depletion and
amortization
Earnings (loss) 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)
|
2017
|
2016
|
2017
|
2016
|
Earnings (loss)
from mining operations
|
34,661
|
(17,302)
|
78,511
|
(31,116)
|
Add:
|
|
|
|
|
|
Depletion and
amortization
|
11,799
|
14,138
|
21,376
|
27,648
|
Earnings (loss)
from mining operations before depletion and
amortization
|
46,460
|
(3,164)
|
99,887
|
(3,468)
|
Site operating costs per ton milled
|
Three months
ended
June 30,
|
Six months
ended
June 30,
|
(Cdn$ in thousands,
except per tons milled amounts)
|
2017
|
2016
|
2017
|
2016
|
Site operating
costs (included in cost of sales)
|
43,044
|
52,409
|
90,194
|
106,216
|
|
|
|
|
|
Tons milled
(thousands) (75% basis)
|
5,611
|
5,417
|
11,100
|
11,024
|
Site operating
costs per ton milled
|
$7.67
|
$9.67
|
$8.13
|
$9.63
|
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements" within the
meaning of applicable Canadian securities legislation and the
United States Private Securities Litigation Reform Act of 1995
(collectively, "forward looking statements") that were based on
Taseko's expectations, estimates and projections as of the dates as
of which those statements were made. Any statements that express,
or involve discussions as to, expectations, believes, plans,
objectives, assumptions or future events or performance that are
not historical facts, are forward-looking statements.
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 the ability to obtain necessary title,
licenses and permits for development projects and project delays
due to third party opposition;
- our ability to comply with the extensive governmental
regulation to which our business is subject;
- 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;
- 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,
equipment failure or other events or occurrences, including third
party interference that interrupt the production of minerals in our
mines;
- the availability of, and uncertainties relating to the
development of, infrastructure necessary for the development of our
projects;
- our reliance upon key personnel; and
- uncertainties relating to increased competition and conditions
in the mining capital markets.
For further information on Taseko, investors should review the
Company's annual Form 40-F filing with the United States Securities
and Exchange Commission at www.sec.gov and home jurisdiction
filings that are available at www.sedar.com, including the "Risk
Factors" included in our Annual Information Form.
Cautionary Statement on Forward-Looking
Information
This discussion includes certain statements that may be deemed
"forward-looking statements". All statements in this
discussion, other than statements of historical facts, that address
future production, reserve potential, exploration drilling,
exploitation activities, and events or developments that the
Company expects are forward-looking statements. Although we
believe the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration
successes, continued availability of capital and financing and
general economic, market or business conditions. Investors
are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ
materially from those projected in the forward-looking
statements. All of the forward-looking statements made in
this MD&A are qualified by these cautionary statements.
We disclaim any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law. Further information concerning risks and
uncertainties associated with these forward-looking statements and
our business may be found in our most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities.
SOURCE Taseko Mines Limited