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, April 29, 2020 /PRNewswire/ - Taseko Mines
Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the
"Company") reports the results for the three months ended
March 31, 2020.
First quarter Cash flows from operations was $17.7 million and adjusted EBITDA was
$5.3 million. The Company reported
Earnings from mining operations before depletion and amortization
of $5.9 million and an Adjusted net
loss* of ($21.6) million, or
($0.09) loss per share. Earnings were
impacted by downward provisional price adjustments of $13.6 million due to the decline in copper price
in March as a result of COVID-19.
Russell Hallbauer, CEO and
Director of Taseko, commented, "Although our financial results were
impacted by the falling copper price, the operating performance at
Gibraltar was in line with our
expectations. The mine produced 32.4 million pounds of copper at
Total operating costs* of US$1.82 per
pound of copper. To-date, there has not been any impact on
Gibraltar operations as a result
of COVID-19. The health and safety of our employees remain the top
priority for the Company during these very challenging times and we
are pleased to report that there have been no cases of COVID-19 at
Gibraltar or any of our other
locations. We will remain vigilant and continue with the
extra measures that are in place to mitigate the risk of an
outbreak, which are being supported by the efforts of our
employees."
Mr. Hallbauer continued, "Operating a large, open pit mine such
as Gibraltar requires the
attention of senior management, planning and adaptability. The
long-term plan we have in place at Gibraltar, provides Taseko with the ability to
respond to circumstances like we are experiencing today. In March,
we announced a number of measures being implemented at Gibraltar in response to the lower copper
price environment. These included both cost reduction initiatives
as well as spending deferrals. Most of these savings only began to
be realized in April, so we expect the impact to be reflected
starting in the second quarter. Additionally, higher grade ore
anticipated to be mined over the next quarters will further lower
our cash costs compared to the first quarter. Strong production has
continued in April with higher throughput, recoveries and
molybdenum production. The Gibraltar Mine is also benefiting from
falling input costs, including diesel fuel which is currently 35%
lower than 2019 average prices, and a weaker Canadian dollar as 80%
of Gibraltar's costs are
denominated in Canadian dollars. The new operating plan and
other identified cost savings are expected to reduce total site
spending (including capitalized stripping) by at least US$0.40 per pound for the coming quarters. These
measures provide Taseko with healthy working capital for the
foreseeable future.
We will continue to monitor market conditions and adjust
operating plans as required to respond to changes in copper price
movements in the future. Production guidance for 2020 remains
unchanged at 130 million pounds (+/-5%), although we now expect
production to be at the higher end of that range based on the
revised plan."
*Non-GAAP performance
measure. See end of news release.
|
Stuart McDonald, President of
Taseko, commented, "While we remain focussed on managing spending
and maintaining a strong cash position, we are still running the
business for the long-term and planning for near-term growth from
our Florence Copper Project. The test facility wellfield and SX/EW
plant operated as planned in the quarter. We have now been
producing cathode at Florence for
over a year and this operating experience will be very valuable
when we ramp up to commercial scale and produce on a steady-state
basis. Permitting is progressing with the Arizona State regulators moving expeditiously. We
expect the draft Aquifer Protection Permit for the commercial scale
facility will be issued in the coming weeks, with public hearings
following shortly thereafter."
"With cash flow from Gibraltar
and near-term growth at Florence,
our Company remains in a strong position. We ended the first
quarter with approximately $50
million of cash and subsequent to quarter-end, our working
capital position was further strengthened as we completed a
transaction with Osisko Gold Royalties Ltd ("Osisko"). Taseko has
received $8.5 million to amend the
existing silver stream agreement with Osisko by eliminating the
delivery price of US$2.75 per ounce
of silver. The original silver stream agreement was put in place in
early 2017 and we are happy to develop our relationship with a
supportive partner like Osisko," added Mr. McDonald.
"We still believe the medium- to long-term fundamentals remain
strong for copper and appear to even be improving as more mines are
shutting down, and current shutdowns being extended, due to
COVID-19. With the incentive price to build new capacity still in
excess of $3.00 per pound, projects
are being delayed which will only exacerbate the supply deficit in
the coming years. Taseko, on the other hand, is not delaying the
development of Florence Copper and still believe it could be
permitted and financed by the end of 2020, moving into construction
at that time," concluded Mr. Hallbauer.
First Quarter Review
- The Gibraltar Mine (100% basis) produced 32.4 million pounds of
copper in the first quarter. Copper recoveries were 83.4% and
copper head grades were 0.259%
- Site operating costs, net of by-product credits* was
US$1.53 per pound produced, and total
operating costs (C1)* was US$1.82 per
pound produced;
- Cash flow from operations was $17.7
million and the Company had an ending cash balance at
March 31, 2020 of $50.2 million, similar to the end of 2019;
- Revenue and earnings were negatively impacted by downward
provisional price adjustments of $13.6
million due to the decline in copper price in March as a
result of COVID-19;
- Earnings from mining operations before depletion and
amortization* was $5.9 million, and
Adjusted EBITDA* was $5.3
million;
- Net loss (GAAP) for the first quarter was $49.0 million ($0.20 per share) after depletion and amortization
of $27.1 million and an unrealized
foreign exchange loss of $29.7
million. Adjusted net loss* was $21.6
million ($0.09 per
share);
- The Company realized $2.9 million
in proceeds from its copper puts in the quarter, and its
outstanding copper puts for April had a fair value of $3.8 million at March 31,
2020; and
- On April 24, 2020, Taseko
concluded an amendment to its silver stream with Osisko Gold
Royalties and received $8.5 million
in exchange for reducing the delivery price of silver from
US$2.75 per ounce to nil, which
further improved its liquidity.
*Non-GAAP performance
measure. See end of news release.
|
HIGHLIGHTS
Operating Data
(Gibraltar - 100% basis)
|
Three months ended
March 31,
|
|
2020
|
2019
|
Change
|
Tons mined
(millions)
|
28.5
|
23.3
|
5.2
|
Tons milled
(millions)
|
7.5
|
6.8
|
0.7
|
Production (million
pounds Cu)
|
32.4
|
24.9
|
7.5
|
Sales (million pounds
Cu)
|
31.1
|
23.3
|
7.8
|
|
|
Financial
Data
|
Three months ended
March 31,
|
(Cdn$ in thousands,
except for per share amounts)
|
2020
|
2019
|
Change
|
Revenues
|
62,084
|
70,274
|
(8,190)
|
Earnings from mining
operations before depletion and
amortization*
|
5,923
|
15,729
|
(9,806)
|
Adjusted
EBITDA*
|
5,346
|
10,245
|
(4,899)
|
Cash flows provided
by operations
|
17,671
|
7,191
|
10,480
|
Adjusted net
loss*
|
(21,647)
|
(14,419)
|
(7,228)
|
Per share - basic
("adjusted EPS")*
|
(0.09)
|
(0.06)
|
(0.03)
|
Net loss
(GAAP)
|
(48,950)
|
(7,931)
|
(41,019)
|
Per share - basic
("EPS")
|
(0.20)
|
(0.03)
|
(0.17)
|
*Non-GAAP performance
measure. See end of news release.
|
REVIEW OF OPERATIONS
Gibraltar Mine
(75% Owned)
|
Operating data
(100% basis)
|
|
Q1
2020
|
Q4
2019
|
Q3
2019
|
Q2
2019
|
Q1
2019
|
Tons mined
(millions)
|
|
28.5
|
25.8
|
24.7
|
26.6
|
23.3
|
Tons milled
(millions)
|
|
7.5
|
7.8
|
7.5
|
7.7
|
6.8
|
Strip
ratio
|
|
2.7
|
2.1
|
3.0
|
2.3
|
3.2
|
Site operating cost
per ton milled (CAD$)*
|
|
$9.52
|
$10.46
|
$10.83
|
$11.51
|
$10.88
|
Copper
concentrate
|
|
|
|
|
|
|
Head
grade (%)
|
|
0.259
|
0.253
|
0.249
|
0.256
|
0.216
|
Copper
recovery (%)
|
|
83.4
|
84.5
|
87.7
|
87.7
|
84.6
|
Production (million pounds Cu)
|
|
32.4
|
33.4
|
33.0
|
34.7
|
24.9
|
Sales
(million pounds Cu)
|
|
31.1
|
33.3
|
33.5
|
32.3
|
23.3
|
Inventory (million pounds Cu)
|
|
6.4
|
5.0
|
5.0
|
5.5
|
3.1
|
Molybdenum
concentrate
|
|
|
|
|
|
|
Production (thousand pounds Mo)
|
|
412
|
728
|
620
|
653
|
738
|
Sales
(thousand pounds Mo)
|
|
403
|
791
|
518
|
708
|
770
|
Per unit data (US$
per pound produced)*
|
|
|
|
|
|
|
Site
operating costs*
|
|
$1.64
|
$1.85
|
$1.88
|
$1.92
|
$2.23
|
By-product credits*
|
|
(0.11)
|
(0.16)
|
(0.16)
|
(0.21)
|
(0.32)
|
Site operating costs,
net of by-product credits*
|
|
$1.53
|
$1.69
|
$1.72
|
$1.71
|
$1.91
|
Off-property
costs
|
|
0.29
|
0.32
|
0.33
|
0.30
|
0.30
|
Total operating costs
(C1)*
|
|
$1.82
|
$2.01
|
$2.05
|
$2.01
|
$2.21
|
*Non-GAAP performance
measure. See end of news release.
|
OPERATIONS ANALYSIS
First quarter results
Copper production in the first quarter was 32.4 million pounds
and copper grade for the quarter averaged 0.259%, both in line with
the life of mine average. Copper recovery in the mill was 83.4%
during the quarter which was lower than previous quarters due to
the higher iron content in the ore.
A total of 28.5 million tons were mined during the period, an
increase of 2.7 million tons over the previous quarter. The
strip ratio for the first quarter was 2.7 to 1 as waste stripping
to further open up the Pollyanna pit was increased during the
quarter in accordance with the long-term mine plan.
Capitalized stripping costs totaled $13.9
million (75% basis) compared to $8.0
million in Q1 2019. The capitalized stripping costs are
attributable to the above-mentioned advancement into the Pollyanna
pit. Total site spending (including capitalized stripping costs)
was lower than the previous quarter, despite increased mined tons,
due to a decline in fuel prices and other costs in the month of
March. Shorter haul distances in the Pollyanna pit also contributed
to lower spending.
Molybdenum production was 412 thousand pounds in the first
quarter, a decrease from prior quarters due to lower molybdenum
grade, which also reduced recovery. Molybdenum prices
averaged US$9.63 per pound over the
first quarter compared to US$9.67 per
pound in the prior quarter and US$11.78 per pound in Q1 2019. By-product
credits per pound of copper produced* was US$0.11 in the first quarter, compared to
US$0.16 in the prior
quarter.
Off-property costs per pound produced* were US$0.29 for the first quarter of 2020 and consist
of concentrate treatment, refining and transportation costs. These
costs are in line with recent quarters relative to pounds of copper
sold.
GIBRALTAR
OUTLOOK
To-date, there have been no interruptions to the Company's
operations, logistics and supply chains as a result of the global
COVID-19 pandemic. There have also been no confirmed cases of
COVID-19 at any of Taseko's operations or offices in Canada and the US.
However, the COVID-19 situation has had a significant impact on
the global economy which has led to lower commodity prices.
In light of the lower copper price environment, management has
reviewed a number of mine plan options for Gibraltar and commencing in April implemented
a revised mining plan for 2020 that will reduce spending in the
near term while still maintaining long-term mine plan requirements
and flexibility, and without negatively impacting 2020 copper
production. Discretionary capital spending has been
eliminated and major maintenance and equipment rebuilds have been
deferred where possible. The operation is also benefiting
from falling input costs, including diesel fuel which is currently
35% lower than 2019 average prices, and a weaker Canadian dollar
(relative to the US dollar) as 80% of Gibraltar's costs are denominated in Canadian
dollars. The new operating plan and other identified cost
savings are expected to reduce total site spending (including
capitalized stripping) by at least US$0.40 per pound for the coming quarters
*Non-GAAP performance
measure. See end of news release.
|
Operating a large, open pit mine such as Gibraltar requires adaptability and management
will continue to monitor market conditions and adjust operating
plans as required to respond to changes in copper price movements
in the future. Production guidance for 2020 remains unchanged
at 130 million pounds (+/-5%), although management expects
production to be at the higher end of that range based on its
revised plan.
The Company is continuing to work with suppliers to identify
further cost saving and deferral opportunities and is also pursuing
the BC Hydro power cost deferral program and other government
initiatives.
The medium to long-term fundamentals for copper remain strong
despite recent volatility caused by global economic events arising
from the coronavirus pandemic, most industry analysts are
projecting supply constraints after an economic recovery which
should bring higher incentive copper prices in the coming
years.
REVIEW OF PROJECTS
Taseko's strategy has been to grow the Company from the
operating cash flow and credit quality of the Gibraltar Mine to
assemble and develop a pipeline of complimentary projects. We
continue to believe this will generate long-term returns for
shareholders. Our development projects are focused primarily on
copper and are located in stable mining jurisdictions in
British Columbia and
Arizona. Our current focus is on the near term development of
the Florence Copper Project.
Florence Copper Project
The Production Test Facility ("PTF") operated as planned during
the first quarter of 2020. Steady state operation was achieved in
2019 and the focus turned to testing different wellfield operating
strategies, including adjusting pumping rates, solution strength,
flow direction, and the use of packers in recovery and injection
wells to isolate different zones of the ore body. The Florence
Copper technical team is using physical and operating control
mechanisms to adjust solution chemistry and flow rates and is
successfully achieving targeted copper concentration in solution.
The PTF wellfield is performing to its design and the SX-EW plant
continues to produce copper cathode.
The main focus of the PTF phase is to demonstrate to regulators
and key stakeholders that hydraulic control of underground leach
solutions can be maintained and provide valuable data to validate
the Company's leach model as well as optimize well design and
performance and hydraulic control parameters. Successful
operation of the in-situ leaching process will allow permits to be
amended for the full-scale commercial operation, which is expected
to produce 85 million pounds of copper cathode annually for 20
years.
Two permits are required to commence construction of the
commercial scale wellfield at Florence Copper. These are the
Aquifer Protection Permit ("APP") from the Arizona Department of
Environmental Quality ("ADEQ") and the Underground Injection
Control ("UIC") Permit from the U.S. Environmental Protection
Agency ("EPA"). The Company submitted the applications for both
permits in mid-2019 and is in active dialogue with the regulators
and targeting to have permitting for the commercial facility
completed in 2020.
During the first quarter, the Company continued to advance
discussions with interested parties regarding the potential sale of
a minority interest in the Florence project, and the proceeds of any such
sale could fund a significant portion of the capital required to
develop the commercial operation. Discussions with potential
lenders and other finance providers will re-commence near the end
of the second quarter. The Company continues to target having
a committed financing package in place prior to receipt of the APP
and UIC permits.
Total net expenditures at the Florence Project for the three
months ended March 31, 2020 were
$4.8 million including operation of
the PTF and other project development costs.
Yellowhead Copper Project
In January 2020, the Company
announced the results of its technical studies on Yellowhead Mining
Inc. ("Yellowhead") which resulted in a 22% increase in recoverable
copper reserves and significantly improved project economics. The
Company filed a new NI 43-101 technical report ("Technical Report
on the Mineral Reserve Update at the Yellowhead Copper Project"
dated January 16, 2020) (the
"Technical Report") on Sedar. Yellowhead holds a 100% interest in a
copper-gold-silver development project located in south-central
British Columbia.
The updated Technical Report outlines a new development plan for
the project, which includes an 817 million tonne reserve and a
25-year mine life with a pre-tax NPV of $1.3
billion at an 8% discount rate using a US$3.10 per pound copper price. This
represents a $500 million increase
over the 2014 Feasibility Study completed by the previous owner.
Capital costs of the project are estimated at $1.3 billion over a 2-year construction
period. Over the first 5 years of operation, the copper
equivalent grade will average 0.35% producing an average of 200
million pounds of copper per year at an average C1 cost, net of
by-product credit, of US$1.67 per
pound of copper. The Yellowhead Copper Project contains valuable
precious metal by-products with 440,000 ounces of gold and 19
million ounces of silver with a life of mine value of over
$1 billion at current
prices.
The Company is focusing its current efforts on advancing
environmental assessment and some additional engineering work in
conjunction with ongoing engagement with local communities
including First Nations. A focus group has been formed
between the Company and high-level regulators in the appropriate
Provincial Ministries in order to expedite the advancement of
environmental assessment and permitting of the project. Management
also commenced joint venture partnering discussions in the first
quarter with a number of strategic industry groups that are
interested in potentially investing in the Yellowhead project in
combination with acquiring the significant copper offtake
rights.
New Prosperity Gold- Copper Project
On December 5, 2019, the Company
announced that the Tŝilhqot'in Nation as represented by Tŝilhqot'in
National Government and Taseko have entered into a dialogue,
facilitated by the Province of British
Columbia, to try to obtain a long-term solution to the
conflict regarding Taseko's proposed gold-copper mine currently
known as New Prosperity, acknowledging Taseko's commercial
interests and the opposition of the Tŝilhqot'in Nation to the
Project. While the details of this process are confidential, in
order to facilitate a dialogue, the parties have agreed to a
standstill on certain outstanding litigation and regulatory matters
which relate to Taseko's tenures and the area in the vicinity of
Teztan Biny (Fish Lake).
Aley Niobium Project
Environmental monitoring and product marketing initiatives on
the Aley Niobium project continue. The pilot plant program
commenced in the second quarter of 2019 has successfully completed
the niobium flotation process portion of the test, raising
confidence in the design and providing feed to begin the converter
portion of the process. Completion of the converter portion of the
pilot plant will provide additional process data to support the
design of the commercial process facilities and provide final
product samples for marketing purposes.
The Company will host
a telephone conference call and live webcast on Thursday, April 30,
2020 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
(888) 390-0546 in Canada and the United States, or (416) 764-8688
internationally. The conference call will be archived for
later playback until May 14, 2020 and can be accessed by dialing
(888) 390-0541 in Canada and the United States, or (416) 764-8677
internationally and using the passcode 247553 #.
|
Russell Hallbauer
CEO and Director
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 and insurance recoverable. Site
operating costs are 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 subtracting 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
March 31,
|
(Cdn$ in thousands,
unless otherwise indicated) – 75% basis
|
2020
|
2019
|
Cost of
sales
|
83,309
|
74,729
|
Less:
|
|
|
Depletion and
amortization
|
(27,148)
|
(20,184)
|
Net change in
inventories of finished goods
|
1,302
|
4,046
|
Net change in
inventories of ore stockpiles
|
603
|
127
|
Transportation
costs
|
(4,519)
|
(3,288)
|
Site operating
costs
|
53,547
|
55,430
|
Less by-product
credits:
|
|
|
Molybdenum,
net of treatment costs
|
(3,231)
|
(7,819)
|
Silver,
excluding amortization of deferred revenue
|
(354)
|
(186)
|
Site operating costs,
net of by-product credits
|
49,962
|
47,425
|
Total copper produced
(thousand pounds)
|
24,318
|
18,641
|
Total costs per pound
produced
|
2.05
|
2.54
|
Average exchange rate
for the period (CAD/USD)
|
1.34
|
1.33
|
Site operating
costs, net of by-product credits (US$ per pound)
|
1.53
|
1.91
|
Site operating costs,
net of by-product credits
|
49,962
|
47,425
|
Add off-property
costs:
|
|
|
Treatment and
refining costs
|
4,956
|
4,266
|
Transportation
costs
|
4,519
|
3,288
|
Total operating
costs
|
59,437
|
54,979
|
Total operating
costs (C1) (US$ per pound)
|
1.82
|
2.21
|
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; and
- Unrealized gain/loss on copper put and fuel call options.
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
March 31,
|
($ in thousands,
except per share amounts)
|
2020
|
2019
|
Net
loss
|
(48,950)
|
(7,931)
|
Unrealized
foreign exchange (gain) loss
|
29,747
|
(6,689)
|
Unrealized
(gain) loss on copper put and fuel call options
|
(3,348)
|
276
|
Estimated tax
effect of adjustments
|
904
|
(75)
|
Adjusted net
loss
|
(21,647)
|
(14,419)
|
Adjusted
EPS
|
(0.09)
|
(0.06)
|
Adjusted EBITDA
Adjusted EBITDA is presented as a supplemental measure of the
Company's performance and ability to service debt. Adjusted EBITDA
is frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in the industry,
many of which present Adjusted EBITDA when reporting their
results. Issuers of "high yield" securities also present
Adjusted EBITDA because investors, analysts and rating agencies
consider it useful in measuring the ability of those issuers to
meet debt service obligations.
Adjusted EBITDA represents net income before interest, income
taxes, and depreciation and also eliminates the impact of a number
of items that are not considered indicative of ongoing operating
performance. Certain items of expense are added and certain items
of income are deducted from net income that are not likely to recur
or are not indicative of the Company's underlying operating results
for the reporting periods presented or for future operating
performance and consist of:
- Unrealized foreign exchange gains/losses;
- Unrealized gain/loss on copper put and fuel call options;
and
- Amortization of share-based compensation expense.
|
Three months
ended
March
31,
|
($ in
thousands)
|
2020
|
2019
|
Net
loss
|
(48,950)
|
(7,931)
|
Add:
|
|
|
Depletion and
amortization
|
27,148
|
20,184
|
Finance
expense
|
10,771
|
9,742
|
Finance
income
|
(150)
|
(308)
|
Income tax
recovery
|
(10,118)
|
(6,816)
|
Unrealized
foreign exchange (gain) loss
|
29,747
|
(6,689)
|
Unrealized
(gain) loss on copper put and fuel call options
|
(3,348)
|
276
|
Amortization of
share-based compensation expense
|
246
|
1,787
|
Adjusted
EBITDA
|
5,346
|
10,245
|
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
March 31,
|
(Cdn$ in
thousands)
|
2020
|
2019
|
Loss from mining
operations
|
(21,225)
|
(4,455)
|
Add:
|
|
|
Depletion and
amortization
|
27,148
|
20,184
|
Earnings from
mining operations before depletion and
amortization
|
5,923
|
15,729
|
|
|
|
Site operating
costs per ton milled
|
|
|
|
Three months ended
March 31,
|
(Cdn$ in thousands,
except per ton milled amounts)
|
2020
|
2019
|
Site operating
costs (included in cost of sales)
|
53,547
|
55,430
|
|
|
|
Tons milled
(thousands) (75% basis)
|
5,622
|
5,096
|
Site operating
costs per ton milled
|
$9.52
|
$10.88
|
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 include 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.
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-reports-first-quarter-2020-financial--operating-results-301049694.html
SOURCE Taseko Mines Limited