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, sales volumes and inventory stated in this release are on
a 100% basis unless otherwise indicated.
|
VANCOUVER, Oct. 26, 2017 /PRNewswire/ - Taseko Mines
Limited (TSX: TKO; NYSE American: TGB) ("Taseko" or the "Company")
reports the results for the three months ended September 30, 2017.
"The third quarter was another very good quarter for Taseko and
despite being impacted by the wildfires in central British Columbia we still produced 35 million
pounds of copper and generated $42
million of adjusted EBITDA*. Mine personnel did an excellent
job of managing through the provincial state of emergency and
widespread evacuation orders," highlighted Russell Hallbauer, President and CEO of Taseko.
"Manpower levels at times were one quarter of normal levels which
impacted mine sequencing and mill operations. Truck and rail
shipments were also halted for an extended period which resulted in
reduced sales volumes and an increase in copper concentrate
inventory of approximately five million pounds, which reduced
earnings for the quarter. We expect a significant reduction in
concentrate inventory by year end."
Third Quarter 2017 Highlights
- Earnings from mining operations before depletion and
amortization* were $45.1 million;
- Cash flow from operations was $37.1
million for the third quarter;
- Adjusted net income* for the third quarter was $13.4 million (or $0.06 per share) and net income was $20.1 million (or $0.09 per share);
- Site operating costs, net of by-product credits* were
US$0.88 per pound produced, down 44%
from the third quarter of 2016;
- The Gibraltar Mine produced 35.1 million pounds of copper and
0.4 million pounds of molybdenum (100% basis) at a total operating
cost (C1)* of US$1.18 per pound;
- Total sales for the third quarter were 30.2 million pounds of
copper and 0.4 million pounds of molybdenum;
- In July 2017, Gibraltar's mining and milling operations were
impacted by wildfires in the Cariboo region which limited our
employees' ability to travel to the mine site. A temporary
shutdown of rail service also affected our ability to get product
to the port, and as a result sales volumes were lower than
planned;
- On September 25, 2017, the
Company announced that the Environmental Appeals Board of the U.S.
Environmental Protection Agency ("EPA") had issued an order denying
any further review of the Underground Injection Control ("UIC")
Permit granted in 2016 for Taseko's Florence Copper Project.
All necessary state and federal permits are now in place to
build and operate the Production Test Facility ("PTF"), and the
Company's board of directors has approved the construction of the
PTF at an estimated cost of US$25
million; and
- The Company's cash balance at September
30, 2017 was $96 million.
"With Gibraltar operations once
again stabilized after being impacted by wildfires in the third
quarter, our focus is on Florence Copper and advancing one of the
lowest capital intensity projects in the world towards commercial
production," commented Mr. Hallbauer. "With receipt of final
permits and construction progressing, we are excited about the
prospects of producing copper in 2018."
"We have seen the copper price increase by nearly 50% since the
lows of 2016 and believe the market is in the early stages of a
major copper deficit. Given the long timelines to develop, permit,
finance and construct a mine, there is no way that copper supply
can quickly be increased to meet growing demand," continued Mr.
Hallbauer. "With the ability to have Florence Copper in commercial
production in 2020, we are ideally positioned to capitalize on a
rapidly improving market. Additionally, with recent announcements
by a number of major auto manufacturers regarding electric vehicles
(EVs), some experts are now forecasting copper demand for EVs will
far surpass previous estimates. Using up to 175 pounds of copper
per car, which is approximately four times that of a conventional
vehicle, plus the associated charging infrastructure, demand from
this sector could prove to be very supportive for copper and other
base metals much earlier than originally anticipated."
*Non-GAAP performance
measure. Refer to end of news release.
|
HIGHLIGHTS
Financial
Data
|
|
Three months
ended
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in thousands,
except for per share amounts)
|
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Revenues
|
|
78,508
|
55,964
|
22,544
|
282,891
|
169,237
|
113,654
|
Earnings from mining
operations before depletion and amortization*
|
|
45,133
|
11,566
|
33,567
|
145,020
|
8,098
|
136,922
|
Earnings (loss) from
mining operations
|
|
33,348
|
(4,501)
|
37,849
|
111,859
|
(35,617)
|
147,476
|
Net income
(loss)
|
|
20,136
|
(15,610)
|
35,746
|
41,862
|
(36,509)
|
78,371
|
|
Per share - basic
("EPS")
|
|
0.09
|
(0.07)
|
0.16
|
0.19
|
(0.16)
|
0.35
|
Adjusted net income
(loss)*
|
|
13,405
|
(10,423)
|
23,828
|
42,965
|
(48,264)
|
91,229
|
|
Per share - basic
("adjusted EPS")*
|
|
0.06
|
(0.05)
|
0.11
|
0.19
|
(0.22)
|
0.41
|
EBITDA*
|
|
48,457
|
4,064
|
44,393
|
141,407
|
7,208
|
134,199
|
Adjusted
EBITDA*
|
|
42,356
|
9,285
|
33,071
|
133,110
|
(2,849)
|
135,959
|
Cash flows provided
by (used for) operations
|
|
37,124
|
(7,493)
|
44,617
|
179,180
|
(15,810)
|
194,990
|
|
|
|
|
Operating Data
(Gibraltar - 100% basis)
|
|
Three months
ended
September 30,
|
Nine months
ended
September 30,
|
|
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Tons mined
(millions)
|
|
23.3
|
21.5
|
1.8
|
66.2
|
69.2
|
(3.0)
|
Tons milled
(millions)
|
|
7.2
|
7.4
|
(0.2)
|
22.0
|
22.1
|
(0.1)
|
Production (million
pounds Cu)
|
|
35.1
|
33.1
|
2.0
|
115.7
|
92.6
|
23.1
|
Sales (million pounds
Cu)
|
|
30.2
|
29.8
|
0.4
|
111.7
|
90.6
|
21.1
|
*Non-GAAP performance
measure. Refer to end of news release.
|
REVIEW OF OPERATIONS
Gibraltar Mine (75% Owned)
|
|
|
|
|
|
|
Operating data
(100% basis)
|
|
Q3
2017
|
Q2
2017
|
Q1
2017
|
Q4
2016
|
Q3
2016
|
Tons mined
(millions)
|
|
23.3
|
21.1
|
21.8
|
18.5
|
21.5
|
Tons milled
(millions)
|
|
7.2
|
7.5
|
7.3
|
7.3
|
7.4
|
Strip
ratio
|
|
4.1
|
2.8
|
2.4
|
1.1
|
1.0
|
Site operating cost
per ton milled (CAD$)
|
|
$5.93
|
$7.67
|
$8.59
|
$9.13
|
$9.47
|
Copper
concentrate
|
|
|
|
|
|
|
|
Grade (%)
|
|
0.284
|
0.309
|
0.328
|
0.319
|
0.259
|
|
Recovery
(%)
|
|
86.1
|
85.2
|
85.9
|
87.0
|
85.9
|
|
Production (million
pounds Cu)
|
|
35.1
|
39.4
|
41.3
|
40.7
|
33.1
|
|
Sales (million pounds
Cu)
|
|
30.2
|
40.7
|
40.8
|
40.4
|
29.8
|
|
Inventory (million
pounds Cu)
|
|
9.3
|
4.6
|
5.9
|
5.6
|
5.4
|
Molybdenum
concentrate
|
|
|
|
|
|
|
|
Production (thousand
pounds Mo)
|
|
445
|
789
|
866
|
764
|
185
|
|
Sales (thousand
pounds Mo)
|
|
403
|
794
|
859
|
798
|
105
|
Per unit data (US$
per pound produced)*
|
|
|
|
|
|
|
|
Site operating
costs*
|
|
$0.97
|
$1.08
|
$1.15
|
$1.23
|
$1.64
|
|
By-product
credits*
|
|
(0.09)
|
(0.11)
|
(0.15)
|
(0.11)
|
(0.06)
|
Site operating costs,
net of by-product credits*
|
|
0.88
|
$0.97
|
$1.00
|
$1.12
|
$1.58
|
Off-property
costs
|
|
0.30
|
0.34
|
0.33
|
0.36
|
0.31
|
Total operating costs
(C1)*
|
|
$1.18
|
$1.31
|
$1.33
|
$1.48
|
$1.89
|
*Non-GAAP performance
measure. Refer to end of news release.
|
OPERATIONS ANALYSIS
Third quarter results
Copper head grade at Gibraltar
was 0.284% in the third quarter and copper recovery for the quarter
was 86%. Mill throughput was 7.2 million tons of ore and
the mine produced 35.1 million pounds of copper.
A total of 23.3 million tons were mined during the quarter at a
strip ratio of 4.1 to 1. Waste stripping costs of $22.9 million (75% basis) were capitalized in the
quarter primarily related to a new pushback in the Granite pit.
Mining and milling operations in July were impacted by wildfires
in the Cariboo region which limited our employees' ability to
travel to the mine site, due to restrictions on road access and
evacuation orders in the region. This resulted in reduced
production for periods of time as well as a complete mine shutdown
for several days during July. Mill operations returned to
normal in early August. During the quarter, approximately 2.6
million tons of ore were drawn from the ore stockpile, which was
largely due to the wild fires impact on mine site access and the
lack of employees available for mine operations.
Site operating cost per ton milled* was $5.93 in the third quarter of 2017, which is
lower than recent quarters due to the increased capitalization of
stripping costs and the drawdown of ore stockpiles.
The molybdenum circuit was negatively impacted by a lack of
personnel during the wild fires. A total of 0.4 million pounds of
molybdenum were produced. By-product credits per pound produced*
was US$0.09 in the third quarter of
2017. Site operating costs per pound produced, net of by-product
credits* decreased to US$0.88 in the
third quarter of 2017 from US$0.97 in
the second quarter of 2017.
Off-property costs per pound produced* were US$0.30 for the third quarter of 2017 compared to
the prior quarter off-property costs of US$0.34. The decrease is due to lower than
planned sales volumes, as treatment and refining and ocean freight
costs are recognized at the time of sale.
Total operating costs (C1) per pound* decreased to US$1.18, a 10% reduction from the second quarter
of 2017.
*Non-GAAP performance
measure. Refer to end of news release.
|
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 fourth
quarter of 2017, increasing to US$3.16 per pound as of October 26, 2017, which is US$0.28 higher than the average LME copper price
in the third quarter of 2017. Operating margins at Gibraltar are sensitive to the Canadian dollar
as approximately 80% of mine operating costs are paid in Canadian
dollars.
The Company is pursuing a potential insurance claim related to
the Cariboo region wildfires in July, however, the outcome of the
claim cannot be determined at this time.
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 third quarter of 2017, expenditures of
$1.8 million were incurred on the
Florence Copper project, and total expenditures of $1.0 million were incurred on the Aley and New
Prosperity projects. Taseko will continue to take a prudent
approach to spending on development projects.
Florence Copper
On September 25, 2017, the Company
announced that the Environmental Appeals Board ("EAB") of the
Environmental Protection Agency had issued an order denying any
further review of the Underground Injection Control Permit granted
in 2016 for Taseko's Florence Copper Project. In the September 22, 2017 decision, the EAB found that
the petitioners failed to demonstrate that any errors were
made in issuing the federal permit. The Company now has all
necessary state and federal permits in place to build and operate
the Production Test Facility ("PTF").
The Company is moving forward with the construction of the PTF
at an estimated cost of US$25
million. 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 SX/EW plant. With
major components already on site, the PTF is expected to be
operational in the latter half of 2018.
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.
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.
The Company will host
a telephone conference call and live webcast on Friday, October 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
November 2, 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 86634056.
|
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
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in thousands,
unless otherwise indicated) – 75% basis
|
|
2017
|
2016
|
2017
|
2016
|
Cost of
sales
|
|
45,160
|
60,465
|
171,032
|
204,854
|
Less:
|
|
|
|
|
|
|
Depletion and
amortization
|
|
(11,785)
|
(16,067)
|
(33,161)
|
(43,715)
|
|
Net change in
inventory
|
|
3,027
|
12,076
|
(566)
|
9,156
|
|
Transportation
costs
|
|
(4,498)
|
(3,544)
|
(15,207)
|
(11,149)
|
Site operating
costs
|
|
31,904
|
52,930
|
122,098
|
159,146
|
Less by-product
credits:
|
|
|
|
|
|
|
Molybdenum, net of
treatment costs
|
|
(2,725)
|
(508)
|
(12,867)
|
(508)
|
|
Silver, excluding
amortization of deferred revenue
|
|
(107)
|
(1,128)
|
(637)
|
(2,970)
|
Site operating costs,
net of by-product credits
|
|
29,072
|
51,294
|
108,594
|
155,668
|
Total copper produced
(thousand pounds)
|
|
26,306
|
24,838
|
86,780
|
69,426
|
Total costs per pound
produced
|
|
1.11
|
2.06
|
1.25
|
2.24
|
Average exchange rate
for the period (CAD/USD)
|
|
1.25
|
1.30
|
1.31
|
1.32
|
Site operating
costs, net of by-product credits (US$ per pound)
|
|
0.88
|
1.58
|
0.96
|
1.69
|
Site operating costs,
net of by-product credits
|
|
29,072
|
51,294
|
108,594
|
155,668
|
Add off-property
costs:
|
|
|
|
|
|
|
Treatment and
refining costs of copper concentrate
|
|
5,378
|
6,187
|
21,900
|
18,266
|
|
Transportation
costs
|
|
4,498
|
3,544
|
15,207
|
11,149
|
Total operating
costs
|
|
38,948
|
61,025
|
145,701
|
185,083
|
Total operating
costs (C1) (US$ per pound)
|
|
1.18
|
1.89
|
1.28
|
2.02
|
Adjusted net income (loss)
Adjusted net income (loss) remove the effect of the following
transactions from net income as reported under IFRS:
- Unrealized foreign currency gains/losses;
- Write-down of mine equipment;
- Unrealized gain/loss on copper put options;
- Loss on settlement of long-term debt;
- Gain/loss on copper call option; 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
September
30,
|
Nine months
ended
September
30,
|
($ in thousands,
except per share amounts)
|
|
2017
|
2016
|
2017
|
2016
|
Net income
(loss)
|
|
20,136
|
(15,610)
|
41,862
|
(36,509)
|
|
Unrealized foreign
exchange (gain) loss
|
|
(10,299)
|
5,090
|
(19,225)
|
(16,587)
|
|
Write-down of mine
equipment
|
|
3,551
|
-
|
3,551
|
-
|
|
Unrealized loss on
copper put options
|
|
647
|
567
|
1,072
|
567
|
|
Loss on settlement of
long-term debt
|
|
-
|
-
|
13,102
|
-
|
|
(Gain) loss on copper
call option
|
|
-
|
(517)
|
6,305
|
474
|
|
Other non-recurring
expenses*
|
|
-
|
81
|
-
|
5,489
|
|
Estimated tax effect
of adjustments
|
|
(630)
|
(34)
|
(3,702)
|
(1,698)
|
Adjusted net
income (loss)
|
|
13,405
|
(10,423)
|
42,965
|
(48,264)
|
Adjusted
EPS
|
|
0.06
|
(0.05)
|
0.19
|
(0.22)
|
* 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.
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 foreign exchange gains/losses;
- Write-down of mine equipment;
- Unrealized gain/loss on copper put options;
- Gain/loss on copper call option; 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
September
30,
|
Nine months
ended
September
30,
|
($ in
thousands)
|
|
2017
|
2016
|
2017
|
2016
|
Net income
(loss)
|
|
20,136
|
(15,610)
|
41,862
|
(36,509)
|
Add:
|
|
|
|
|
|
|
Depletion and
amortization
|
|
11,785
|
16,066
|
33,161
|
43,799
|
|
Amortization of
share-based compensation expense
|
|
2,250
|
253
|
5,779
|
2,300
|
|
Finance
expense
|
|
8,385
|
7,964
|
37,738
|
21,979
|
|
Finance
income
|
|
(403)
|
(279)
|
(1,204)
|
(787)
|
|
Income tax expense
(recovery)
|
|
6,304
|
(4,330)
|
24,071
|
(23,574)
|
EBITDA
|
|
48,457
|
4,064
|
141,407
|
7,208
|
Adjustments:
|
|
|
|
|
|
|
Unrealized foreign
exchange (gain) loss
|
|
(10,299)
|
5,090
|
(19,225)
|
(16,587)
|
|
Write-down of mine
equipment
|
|
3,551
|
-
|
3,551
|
-
|
|
Unrealized loss on
copper put options
|
|
647
|
567
|
1,072
|
567
|
|
(Gain) loss on copper
call option
|
|
-
|
(517)
|
6,305
|
474
|
|
Other non-recurring
expenses*
|
|
-
|
81
|
-
|
5,489
|
Adjusted
EBITDA
|
|
42,356
|
9,285
|
133,110
|
(2,849)
|
* 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.
|
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
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in
thousands)
|
|
2017
|
2016
|
2017
|
2016
|
Earnings (loss)
from mining operations
|
|
33,348
|
(4,501)
|
111,859
|
(35,617)
|
Add:
|
|
|
|
|
|
|
Depletion and
amortization
|
|
11,785
|
16,067
|
33,161
|
43,715
|
Earnings from
mining operations before depletion
and amortization
|
|
45,133
|
11,566
|
145,020
|
8,098
|
Site operating costs per ton milled
|
|
Three months
ended
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in thousands,
except per ton milled amounts)
|
|
2017
|
2016
|
2017
|
2016
|
Site operating
costs (included in cost of sales)
|
|
31,904
|
52,930
|
122,098
|
159,146
|
|
|
|
|
|
|
Tons milled
(thousands) (75% basis)
|
|
5,380
|
5,587
|
16,480
|
16,611
|
Site operating
costs per ton milled
|
|
$5.93
|
$9.47
|
$7.41
|
$9.58
|
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