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. 31, 2018 /CNW/ - Taseko Mines Limited (TSX:
TKO; NYSE American: TGB) ("Taseko" or the "Company") reports
earnings from mining operations before depletion and amortization*
of $33.7 million and adjusted net
income* of $1.5 million for the three
months ended September 30, 2018.
Russell Hallbauer, President
& CEO commented, "In August, Gibraltar's mine engineering group determined
that the Granite Pit high wall could be steepened, based on data
from geotechnical and rock structure evaluations. We immediately
redesigned the Granite Pit pushback, which allowed us earlier
access to high grade ore benches. These benches, which we partially
mined in the third quarter, were not included in the 2018 mine plan
and ended up having a dramatic impact on copper production during
the quarter."
"Not only did we benefit from higher grade ore in the third
quarter, but the ore that was processed was also softer and we were
able to achieve higher than design throughput of 87,000 tons per
day, 6% higher than the previous quarter. The combination of higher
grade ore and throughput resulted in 43 million pounds of copper
production in the third quarter," added Mr. Hallbauer.
Mr. Hallbauer continued, "Sales of 29 million pounds in the
quarter were below production due to extremely poor rail service,
which stranded 18.5 million pounds of copper in concentrate at the
mine. The lower sales affected our quarterly revenues by
approximately $40 million and cash
flow by approximately $30 million,
based on current copper pricing."
"We continued to make progress at our Florence Copper Project
during the quarter. The wellfield, SX/EW plant and all associated
infrastructure are now commissioned and pre-operations tests are
being performed with positive results to-date. We anticipate final
authorizations to commence operations from the regulators shortly,
and are ready to immediately commence leaching operations. This
project represents many near-term catalysts for the Company as we
demonstrate the low-cost, environmental and technical attributes of
the in-situ production process," continued Mr. Hallbauer.
"Fourth quarter production is expected to be at a more
normalized level, with estimated total copper production of 130
million pounds for 2018. We anticipate that during the fourth
quarter the railway will be able to move most of the excess copper
concentrate inventory, in addition to the fourth quarter
production, to the port for shipping. Depending on vessel
scheduling and berth availability, we could realize sales of
approximately 45 million pounds (100% basis) for the quarter,"
concluded Mr. Hallbauer.
Third Quarter Highlights
- Copper production in the third quarter was 43.0 million pounds
(100% basis), which represents a 28% increase over the previous
quarter as a result of the higher head grades and increased mill
throughput;
- Total copper sales for the quarter were 29.0 million pounds
(100% basis), as concentrate shipments were delayed by poor rail
service between the mine and the port terminal. As a result,
inventories increased to 18.5 million pounds of copper (100% basis)
at September 30, 2018. The lower
sales affected the Company's quarterly revenues by approximately
$40 million and cash flow by
approximately $30 million, based on
current copper pricing. The excess inventory is expected to be sold
in the fourth quarter;
- Third quarter earnings from mining operations before depletion
and amortization* were $33.7
million;
- Net income was $7.1 million
($0.03 net earnings per share) and
Adjusted net income* was $1.5 million
($0.01 per share);
- Site operating costs, net of by-product credits* were
US$1.34 per pound produced and Total
operating costs (C1)* were US$1.58
per pound produced, as unit costs were positively impacted by the
higher grades and production;
- The Company has finalized an insurance claim of $7.9 million (75% basis) related to the Cariboo
region wildfires in July 2017. Third
quarter earnings include an insurance recovery of $3.9 million;
- Construction of the Production Test Facility ("PTF") for the
Florence Copper Project was completed in October, on time and on
budget. The facility is operational and first copper cathode is
expected by the end of this year;
- Cash flow from operations was $18.1
million, which was impacted by a $12.6 million working capital adjustment related
to the increased inventories and the timing of customer
payments;
- At September 30, 2018 the Company
held put options for 15 million pounds of copper with scheduled
maturities over the fourth quarter of 2018 at a strike price of
US$2.80 per pound; and
- The Company's cash balance at September
30, 2018 was $45 million, a
reduction from the previous quarter mainly due to the build-up of
unsold copper concentrate inventories.
*Non-GAAP performance
measure. See end of news release.
|
HIGHLIGHTS
Financial
Data
|
Three months ended
September 30,
|
Nine months
ended September 30,
|
(Cdn$ in thousands,
except for per share amounts)
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Revenues
|
74,297
|
78,508
|
(4,211)
|
232,749
|
282,891
|
(50,142)
|
Earnings from mining
operations before depletion and amortization*
|
33,742
|
45,133
|
(11,391)
|
83,553
|
145,020
|
(61,467)
|
Earnings from mining
operations
|
13,568
|
33,348
|
(19,780)
|
30,644
|
111,859
|
(81,215)
|
Net income
(loss)
|
7,098
|
20,136
|
(13,038)
|
(16,054)
|
41,862
|
(57,916)
|
Per
share - basic ("EPS")
|
0.03
|
0.09
|
(0.06)
|
(0.07)
|
0.19
|
(0.26)
|
Adjusted net income
(loss)*
|
1,464
|
13,405
|
(11,941)
|
(7,198)
|
42,965
|
(50,163)
|
Per
share - basic ("adjusted EPS")*
|
0.01
|
0.06
|
(0.05)
|
(0.03)
|
0.19
|
(0.22)
|
EBITDA*
|
37,718
|
48,457
|
(10,739)
|
63,597
|
141,407
|
(77,810)
|
Adjusted
EBITDA*
|
31,940
|
42,356
|
(10,416)
|
71,728
|
133,110
|
(61,382)
|
Cash flows provided
by operations
|
18,053
|
37,124
|
(19,071)
|
49,958
|
179,180
|
(129,222)
|
Operating Data
(Gibraltar - 100% basis)
|
Three months ended
September 30,
|
Nine months
ended September 30,
|
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Tons mined
(millions)
|
29.0
|
23.3
|
5.7
|
83.1
|
66.2
|
16.9
|
Tons milled
(millions)
|
8.0
|
7.2
|
0.8
|
22.9
|
22.0
|
0.9
|
Production (million
pounds Cu)
|
43.0
|
35.1
|
7.9
|
99.4
|
115.7
|
(16.3)
|
Sales (million pounds
Cu)
|
28.8
|
30.2
|
(1.4)
|
83.8
|
111.7
|
(27.9)
|
|
*Non-GAAP performance
measure. See end of news release.
|
REVIEW OF OPERATIONS
Gibraltar Mine
(75% Owned)
|
Operating data
(100% basis)
|
|
Q3
2018
|
Q2
2018
|
Q1
2018
|
Q4
2017
|
Q3
2017
|
Tons mined
(millions)
|
|
29.0
|
27.4
|
26.7
|
26.9
|
23.3
|
Tons milled
(millions)
|
|
8.0
|
7.5
|
7.5
|
7.9
|
7.2
|
Strip
ratio
|
|
1.7
|
1.9
|
4.1
|
4.9
|
4.1
|
Site operating cost
per ton milled (CAD$)*
|
|
$10.60
|
$10.31
|
$8.68
|
$7.68
|
$5.93
|
Copper
concentrate
|
|
|
|
|
|
|
Grade
(%)
|
|
0.314
|
0.263
|
0.201
|
0.209
|
0.284
|
Recovery
(%)
|
|
85.9
|
85.3
|
75.7
|
77.5
|
86.1
|
Production (million pounds Cu)
|
|
43.0
|
33.5
|
22.9
|
25.5
|
35.1
|
Sales
(million pounds Cu)
|
|
28.8
|
32.2
|
22.8
|
32.0
|
30.2
|
Inventory (million pounds Cu)
|
|
18.5
|
4.2
|
2.9
|
2.7
|
9.3
|
Molybdenum
concentrate
|
|
|
|
|
|
|
Production (thousand pounds Mo)
|
|
690
|
506
|
443
|
537
|
445
|
Sales
(thousand pounds Mo)
|
|
709
|
424
|
433
|
589
|
403
|
Per unit data (US$
per pound produced)*
|
|
|
|
|
|
|
Site
operating costs*
|
|
$1.50
|
$1.78
|
$2.25
|
$1.86
|
$0.97
|
By-product credits*
|
|
(0.16)
|
(0.12)
|
(0.23)
|
(0.17)
|
(0.09)
|
Site operating costs,
net of by-product credits*
|
|
$1.34
|
$1.66
|
$2.02
|
$1.69
|
$0.88
|
Off-property
costs
|
|
0.24
|
0.32
|
0.31
|
0.42
|
0.30
|
Total operating costs
(C1)*
|
|
$1.58
|
$1.98
|
$2.33
|
$2.11
|
$1.18
|
OPERATIONS ANALYSIS
Third quarter results
Copper production in the third quarter was 43.0 million pounds,
significantly higher than previous quarters as a result of improved
head grade and increased concentrator throughput. The improved
head grade was mainly achieved by developing a very high grade ore
zone near the bottom of the Granite pit pushback faster than
planned. During bench development, geotechnical drilling and rock
structure evaluations indicated that the high wall could be
steepened and additional ore benches could be developed deeper into
the Granite Pit. Steepening of the high wall and accelerated mining
allowed access to the higher grade ore quicker than
that anticipated in the 2018 mine plan.
A total of 29.0 million tons were mined during the period, an
increase over previous quarters as haulage truck hours were
increased to meet mine plan sequencing requirements. The strip
ratio for the third quarter of 1.7 to 1 was lower than recent
quarters as a total of 2.9 million tons of mined ore was added to
the ore stockpile in the period.
Site operating cost per ton milled* was $10.60 in the third quarter of 2018, which is
higher than recent quarters. The increased operating costs are due
to the increased mining rate as well as a reduction in the
proportion of the mining costs that are capitalized. Waste
stripping costs of $7.6 million (75%
basis), were capitalized in the third quarter.
*Non-GAAP performance
measure. See end of news release.
|
Site operating costs per pound produced* decreased to
US$1.50 from US$1.78 in the previous quarter, primarily due to
higher copper production. Site operating costs per pound produced*
does not take into account the insurance recoverable of
$3.9 million that was recorded in the
third quarter.
Molybdenum production increased to 0.7 million pounds in the
third quarter due to improved molybdenum plant operating
performance. Molybdenum sales volumes were in line with production
levels as the product is delivered to the customer at the mine gate
and not affected by rail transportation delays. By-product credits
per pound of copper produced* increased to US$0.16 in the third quarter from US$0.12 in the previous quarter.
Off-property costs per pound produced* were US$0.24 for the third quarter of 2018, which is
lower than recent quarters as a result of lower copper sales volume
relative to copper production during the current period.
Off-property costs are lower in periods where sales volumes are
lower. Total operating costs (C1) per pound* decreased to
US$1.58, a 20% decrease from the
second quarter of 2018.
GIBRALTAR
OUTLOOK
Fourth quarter 2018 copper production is expected to return to
more normal levels, and total copper production is expected to be
approximately 130 million pounds for the 2018
year. Inventories of copper in concentrate increased to 18.5
million pounds at September 30, 2018,
and we expect that during the fourth quarter rail service will move
most of the excess inventory to the port for shipping. Sales
volumes in the fourth quarter could be approximately 45 million
pounds of copper (100% basis), depending on vessel scheduling and
berth availability.
The Company has finalized an insurance claim of $7.9 million (75% basis) related to the Cariboo
region wildfires in July 2017. Cash
settlement is expected in the fourth quarter.
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. Our current focus is on the development of the Florence
Copper Project.
Florence Copper Project
In September 2017, the Company
announced that it was moving forward with the construction of the
Production Test Facility ("PTF") for the Florence Copper Project.
The SX/EW Plant and the associated wellfield, comprised of 24
production, monitoring, observation and point of compliance
wells.
Construction of the PTF progressed smoothly through the third
quarter and has now been completed, on time and on budget. Total
construction expenditures were $32.5
million (US$25.0 million) as
at September 30, 2018. The wellfield
and associated facilities are ready to commence leaching
activities, and first copper production is expected by the end of
the year. Construction expenditures on the PTF in the nine
months ended September 30, 2018 were
$27.3 million (US$20.8 million).
*Non-GAAP performance
measure. See end of news release.
|
Successful operation of the in situ leaching process will allow
permits to be amended for the full scale operation of 85 million
pounds per year of copper cathode. It is anticipated that
construction of the commercial scale operation could be commenced
in the first half of 2020.
Aley Niobium Project
Environmental monitoring on the project continues and a number
of product marketing initiatives are underway. A drill program was
completed in the third quarter to collect samples for further
metallurgical testing.
The Company will host
a telephone conference call and live webcast on Thursday, November
1, 2018 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss
these results. After opening remarks by management, there
will be a question and answer session open to analysts and
investors. 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 8, 2018 and can be accessed by dialing (855) 859-2056 in
Canada and the United States, or (404) 537-3406 internationally and
using the passcode 7999942.
|
Russell Hallbauer
President and CEO
No regulatory authority has approved or
disapproved of the information contained 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 and insurance recoverable. Site
operating costs is calculated by removing net changes in inventory,
depletion and amortization, insurance recoverable, 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
|
2018
|
2017
|
2018
|
2017
|
Cost of
sales
|
60,729
|
45,160
|
202,105
|
171,032
|
Less:
|
|
|
|
|
Depletion and
amortization
|
(20,174)
|
(11,785)
|
(52,909)
|
(33,161)
|
Insurance
recoverable
|
3,875
|
-
|
7,875
|
-
|
Net change in
inventories of finished goods
|
17,439
|
5,440
|
17,593
|
5,696
|
Net change in
inventories of ore stockpiles
|
6,716
|
(2,413)
|
7,827
|
(6,262)
|
Transportation
costs
|
(5,149)
|
(4,498)
|
(12,507)
|
(15,207)
|
Site operating
costs
|
63,436
|
31,904
|
169,984
|
122,098
|
Less by-product
credits:
|
|
|
|
|
Molybdenum, net of
treatment costs
|
(6,937)
|
(2,725)
|
(15,776)
|
(12,867)
|
Silver, excluding
amortization of deferred revenue
|
42
|
(107)
|
(209)
|
(637)
|
Site operating costs,
net of by-product credits
|
56,541
|
29,072
|
153,999
|
108,594
|
Total copper produced
(thousand pounds)
|
32,251
|
26,306
|
74,516
|
86,780
|
Total costs per pound
produced
|
1.75
|
1.11
|
2.07
|
1.25
|
Average exchange rate
for the period (CAD/USD)
|
1.31
|
1.25
|
1.29
|
1.31
|
Site operating
costs, net of by-product credits (US$ per pound)
|
1.34
|
0.88
|
1.61
|
0.96
|
Site operating costs,
net of by-product credits
|
56,541
|
29,072
|
153,999
|
108,594
|
Add off-property
costs:
|
|
|
|
|
Treatment and refining
costs of copper concentrate
|
4,725
|
5,378
|
14,617
|
21,900
|
Transportation
costs
|
5,149
|
4,498
|
12,507
|
15,207
|
Total operating
costs
|
66,415
|
38,948
|
181,123
|
145,701
|
Total operating
costs (C1) (US$ per pound)
|
1.58
|
1.18
|
1.89
|
1.28
|
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;
- Unrealized gain/loss on copper put options;
- Losses on settlement of long-term debt and copper call option;
and
- Write-down of mine equipment.
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)
|
2018
|
2017
|
2018
|
2017
|
Net income
(loss)
|
7,098
|
20,136
|
(16,054)
|
41,862
|
Unrealized
foreign exchange (gain) loss
|
(5,244)
|
(10,299)
|
10,817
|
(19,225)
|
Unrealized
(gain) loss on copper put options
|
(534)
|
647
|
(2,686)
|
1,072
|
Loss on copper
call option
|
-
|
-
|
-
|
6,305
|
Loss on
settlement of long-term debt
|
-
|
-
|
-
|
13,102
|
Write-down of
mine equipment
|
-
|
3,551
|
-
|
3,551
|
Estimated tax
effect of adjustments
|
144
|
(630)
|
725
|
(3,702)
|
Adjusted net
income (loss)
|
1,464
|
13,405
|
(7,198)
|
42,965
|
Adjusted
EPS
|
0.01
|
0.06
|
(0.03)
|
0.19
|
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;
- Unrealized gain/loss on copper put options;
- Losses on settlement of long-term debt and copper call option;
and
- Write-down of mine equipment.
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)
|
2018
|
2017
|
2018
|
2017
|
Net income
(loss)
|
7,098
|
20,136
|
(16,054)
|
41,862
|
Add:
|
|
|
|
|
Depletion and
amortization
|
20,174
|
11,785
|
52,909
|
33,161
|
Amortization of
share-based compensation expense (recovery)
|
(386)
|
2,250
|
(994)
|
5,779
|
Finance
expense
|
9,829
|
8,385
|
28,873
|
37,738
|
Finance
income
|
(296)
|
(403)
|
(940)
|
(1,204)
|
Income tax expense
(recovery)
|
1,299
|
6,304
|
(197)
|
24,071
|
EBITDA
|
37,718
|
48,457
|
63,597
|
141,407
|
Adjustments:
|
|
|
|
|
Unrealized foreign
exchange (gain) loss
|
(5,244)
|
(10,299)
|
10,817
|
(19,225)
|
Write-down of mine
equipment
|
-
|
3,551
|
-
|
3,551
|
Unrealized (gain) loss
on copper put options
|
(534)
|
647
|
(2,686)
|
1,072
|
Loss on copper call
option
|
-
|
-
|
-
|
6,305
|
Adjusted
EBITDA
|
31,940
|
42,356
|
71,728
|
133,110
|
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
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in
thousands)
|
2018
|
2017
|
2018
|
2017
|
Earnings from
mining operations
|
13,568
|
33,348
|
30,644
|
111,859
|
Add:
|
|
|
|
|
Depletion and
amortization
|
20,174
|
11,785
|
52,909
|
33,161
|
Earnings from
mining operations before depletion and amortization
|
33,742
|
45,133
|
83,553
|
145,020
|
Site operating costs per ton milled
|
Three months
ended
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in thousands,
except per ton milled amounts)
|
2018
|
2017
|
2018
|
2017
|
Site operating
costs (included in cost of sales)
|
63,436
|
31,904
|
169,984
|
122,098
|
|
|
|
|
|
Tons milled
(thousands) (75% basis)
|
5,983
|
5,380
|
17,208
|
16,480
|
Site operating
costs per ton milled
|
$10.60
|
$5.93
|
$9.88
|
$7.41
|
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.
View original
content:http://www.prnewswire.com/news-releases/taseko-announces-43-million-pounds-of-copper-production-and-financial-results-for-the-third-quarter-300741675.html
SOURCE Taseko Mines Limited