Upload
monster12
View
1.275
Download
3
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Annual General MeetingJune 16, 2010
Some of the statements contained in the following material are "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated mineral resource and reserve quantities, grades and contained metal, and possible future mining, exploration and development activities, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as 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 for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities Commission at www.sec.gov. and its Canadian securities filings that are available at www.sedar.com.
Forward-Looking Statements
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10
Copper (US$/lb)Taseko Share Price (C$)
2008 – An Unprecedented Collapse
2009 – An Unexpected Rebound
A Year in Review
Low – US$1.26/lb
Low – C$0.66/share
February 2009 – Finalized a US$30 million term loan facility with Credit Suisse to fund expansion projects at its Gibraltar Mine
June 2009 – Purchased entire US$30 million of Convertible Bonds, out of working capital, eliminating the dilutive effects of the bonds
August 2009 – Completed installation of a new tower mill, increasing regrind capacity and improving metal recoveries
September 2009 – With the addition of Investec, the Company increased its term loan facility to US$50 million.
November 2009 – Increased Prosperity reserves to 7.7 million ounces of recoverable gold and 3.6 billion pounds of recoverable copper
January 2010 – Received British Columbia Environmental Assessment Certificate for Prosperity
March 2010 – Repaid entire US$50 million long-term credit facilityMarch 2010 – Completed transaction to sell 25% of Gibraltar Mine for ~$187
millionApril 2010 – 23.2 million pounds of copper production from Gibraltar in Q1 2010May 2010 – Signed gold stream agreement with Franco-Nevada to sell 22% of
future gold production from Prosperity for US$350 million
Key Accomplishments
A Year in Review
0
5
10
15
20
25
Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
(mill
ions
lbs)
CathodeConcentrate
A Year in Review
Steadily Increasing Production
• In second half of 2008, all capital projects were supspended• Expansion modernization projects back on track and benefits
now being realized
Financial Returns
-$40
-$20
$0
$20
$40
$60
$80
$100
$120
$140
2007 2008 2009 2010*
(C$,
mill
ions
)
Operating Profit Net Earnings Cash Flow from Operations
Q1 Annualized Estimate
Financials Back on Track
$0
$100
$200
$300
$400
$500
$600
$700
2007 2008 2009 2010
(C$,
mill
ions
)
Cash and Equivalents Total Assets Shareholders' Equity
At March 31
Financial Returns
Balance Sheet Strengthened
A Year in Review
Peer Performance
0
250
500
750
1000
Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10
Taseko
QuadraTeck
InmetFirst Quantum
Rio TintoAnglo
FreeportImperial
Capstone
Taseko Stock has increased670% in last 17 months, compared to our peer average of 270%
Location: 125 km south-west of Williams Lake, BC
Ownership: 100%
Mineral Reserves:7.7 million ounces recoverable gold3.6 billion pounds recoverable copper
Mine Type: Open-pit
Estimated Annual LOM Production:
245,000 ounces gold110 million pounds copper
Mine Life: 33 years
Prosperity Gold-Copper Project
• Environmental Assessment Approval• Provincial Gov’t approval received on January 14, 2010 • Federal Gov’t approval expected in Q3/10
• Mine Permitting• Underway• Submission to British Columbia Ministry of Mines in
April/10
Yr 1* Yr 2 Yr 3 Yr 4 Yr 5
Gold (ounces) 158,300 294,900 324,200 274,000 303,600
Copper (thousands, pounds) 72,600 125,500 131,100 116,600 118,400
Prosperity Gold-Copper Project
Production
• 33-year mine life• 5-year production profile
• 300,000 ounces au/year• 130 million pounds cu/year
• Life of mine average annual production ~400,000 gold eq. ounces
*Six months of production
Economics
• Feasibility Study complete • Capital cost of C$815 million• Operating cost of C$7.50 per
tonne milled• Total costs, net of BPCs at
US$3.00 cu, of negative US$330/oz gold
• Margin at today’s gold price is ~$1,500 per ounce of gold
Prosperity Gold-Copper Project
$1.65 $2.15 $2.65 $3.15
$650 1 $225 $825 $1,425 $2,000
2 10% 17% 23% 28%
3 8.0 4.5 3.5 2.75
$750 1 $500 $1,100 $1,700 $2,300
2 13% 19% 25% 31%
3 5.5 4 3 2.5
$850 1 $775 $1,400 $1,975 $2,600
2 16% 22% 28% 34%
3 4.5 3.5 2.5 2.5
$950 1 $1,000 $1,600 $2,300 $2,900
2 19% 25% 31% 37%
3 4.0 3.0 2.5 2.25
Copper – US$/lb
1 – Pre Tax NPV @ 7.5% (C$, millions)
2 – IRR (%)
3 – Payback (years)
Gol
d –
US
$/oz
Feas
ibilit
ySt
udy
L/T
Con
s.P
ricin
g
Top 50 Major Global Non-Producing Cu-Au Deposits by Gold Contained
• Prosperity is one of the largest non-producing copper-gold deposits in a jurisdiction with low political risk (2nd largest pre-producing deposit in a low political risk jurisdiction globally)
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
-
2
4
6
8
10
12
14
16
18
20
Pebb
le -
Nor
ther
n D
ynas
ty M
iner
als
Rek
o D
iq -
Anto
faga
sta
Oyu
Tol
goi -
Ivan
hoe
Min
esTa
mpa
kan
-Xst
rata
Look
out H
ill -
Ivan
hoe
Min
esSa
lobo
-Va
le S
APr
ospe
rity -
Tase
ko M
ines
Boug
ainv
ille
-Rio
Tin
toFr
ieda
Riv
er -
Xstra
ta
Agua
Ric
a -Y
aman
a G
old
Gol
pu -
New
cres
t Min
ing
Gal
ore
Cre
ek -
Nov
aGol
d R
esou
rces
El
Mor
ro -
Xstra
taC
asin
o -W
este
rn C
oppe
r R
ed C
hris
-Im
peria
l Met
als
Byst
rinsk
oye -
Nor
ilsk
Nic
kel (
MM
C)
Espe
ranz
a -A
ntof
agas
ta
Xiet
ongm
en -
Con
tinen
tal M
iner
als
Tele
graf
o Su
r -An
tofa
gast
a Bo
yong
an -
Phile
x G
old
Cer
ro C
olor
ado
-Gov
ernm
ent o
f Pan
ama
Nam
osi -
New
cres
t Min
ing
Scha
ft C
reek
-C
oppe
r Fox
Met
als
King
king
-Be
ngue
t Ta
ldyb
ulak
Tal
as -
Gol
d Fi
elds
M
irado
r -C
orrie
nte
Res
ourc
es
Jose
mar
ia -
Sura
min
a R
esou
rces
M
anka
yan
-Bez
ant R
esou
rces
G
alen
o -C
hina
Min
met
als
Ak-S
ug -
Gol
evsk
aya
Min
ing
Com
pany
El A
rco
-Sou
ther
n C
oppe
r C
lonc
urry
-Iv
anho
e Au
stra
lia
Sinc
hao
-Sin
chao
Met
als
Cob
re P
anam
a -I
nmet
Min
ing
Dub
oash
an -
Chi
na N
on-F
erro
us M
etal
Sier
ra G
orda
-Q
uadr
a M
inin
g Ya
nder
a -M
aren
go M
inin
g M
irdita
-Ti
rex R
esou
rces
Ku
ru T
eger
ek -
Chi
na S
hen
Zhou
Min
ing
Tuw
u-Ya
ndon
g -Y
unna
n C
oppe
r Aj
ax -
Abac
us M
inin
g an
d Ex
plor
atio
n Ilo
vitz
a -E
urO
max
Res
ourc
es
Taca
Tac
a -L
umin
a C
oppe
r H
usha
mu
-IM
A Ex
plor
atio
n G
amel
eira
-Va
le S
AC
oppe
r Can
yon
-Spe
ctru
mG
old
(Nov
agol
d)Ko
du -
Gov
ernm
ent O
f Pap
ua N
ew G
uine
aTa
ysan
-C
hase
Res
ourc
e To
ng-L
a-Sh
an -
Jins
han
Gol
d M
ines
N
okom
is -D
ulut
h M
etal
s
Gol
d G
rade
(g/t)
Tota
l Au
Res
ourc
es (M
M o
zs)
High Political Risk
Medium Political Risk
Low Political Risk
Gold Grade (g/t)
94M 44M 32M
Prosperity Gold-Copper Project
Source: Wellington West Capital Markets; Metals Economics Group 2008-2009; Fraser Mining Institute Survey for Political Risk; Transparency International Annual Report 2008
Timeline
Prosperity Gold-Copper Project
2006 2007 2008 2009 2010 2011 2012 2013 2014
Commissioning
Construction
Site Prep
Order Long-Lead Equipment
Project Financing
Federal EA Certificate Granted
Permit Applications Submitted
Permitting
Provincial EA Certificate Granted
Environmental Assessment Review
Reserve Update
Feasibility
BritishColumbia
Prosperity(Gold / Copper)
Williams Lake
Mt. Milligan(copper/gold)
Galore Creek(copper/gold)
Copper Mtn.(copper/gold)
Red Chris(copper/gold)
Mining projects permitted in last 12-18 months
Prosperity Gold-Copper Project
British Columbia/Canadian Permitting
• British Columbia is responsible for mine development
• The Province granted Prosperity EA Certificate in January 2010
• Four other similar projects have received EA Certificates and permits in recent history
• Federal review panel to issue final report to minister in early July
Vancouver
Prosperity Gold-Copper Project
Details of Gold Stream Agreement
• Franco-Nevada will have right to purchase 22% of Prosperity gold production for $400/oz (inflation adjusted)
• Taseko will receive US$350 million plus 2 million Franco- Nevada 2017 share warrants
• Funding contingent on:• permitting,• project being fully financed, and• 75% of concentrate contracted for 5 years
• Deposit funded pro-rata with other sources of capital
Prosperity Gold-Copper Project
Value of Gold Stream Agreement
• Taseko will receive ~45% of required construction capital by selling 6% of total gross revenue
Recoverable MetalAu 7.7 million ozCu 3.6 billion lb
Long-term Metal PricingAu price $925/ozCu price $2.10/lb
Total Au revenue $7.1 billionTotal Cu revenue $7.6 billionTotal revenue $14.7 billionAu revenue to FNV $0.9 billion% of total revenue to FNV 6.1%
Prosperity Gold-Copper Project
FinancingSources: (C$ millions)
1) Cash on Hand $200
2) Sold 22% of Prosperity Gold Stream $350
3) Gibraltar Cashflow $100
Total $650Prosperity Capital Costs: $815
Financing requirements: $165
Financing Options:1. Project finance debt2. Sale of offtake for debt3. Sale of minority interest in Prosperity (5%-10%)
Gibraltar Copper Mine
Location: 65 km north of Williams Lake, BC
Ownership: 75%
Mineral Reserves:2.7 billion pounds recoverable copper30 million pounds recoverable molybdenum
Mine Type: Open-pit
Estimated Annual LOM Production:
90 million pounds copper (Taseko share)900,000 pounds molybdenum (Taseko share)
Mine Life: 25 years
• 25% of Gibraltar was sold to Japanese consortium in Q1 2010 for $187 million
• $300 million invested to modernize the operation• Remaining improvements expected to be completed by Q4 2010 • Average annual copper production to increase to 115 million
pounds by Q4 2010• Gibraltar is the second largest open pit copper mine in Canada• Replacement value of $825 million
Steadily Increasing Production
Gibraltar Copper Mine
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014
(Cu
- lbs
, mill
ions
)
0
50
100
150
200
250
300
(Au
- ozs
, tho
usan
ds)
Gib
ralta
r
Gib
ralta
r
Gib
ralta
r
Pro
sper
ity
Gib
ralta
r
Pro
sper
ityG
ibra
ltar
Pro
sper
ity
By 2013, copper production increasing by 200% plus 300,000 ounces of gold per year
Pro
sper
ity
Gib
ralta
r
Looking Ahead
2010 Key Priorities
Receive Provincial approval for the development of Prosperity
Complete transaction to sell 25% of Gibraltar to Japanese Consortium
Reduce Long-term debt
Monetize a portion of Prosperity’s gold stream
Convert Prosperity’s mineral claims to a mining lease
Complete funding of remaining ~$165 million for construction of Prosperity
Receive final approvals for development of Prosperity from Federal Government
Commence site preparation work at Prosperity
Complete Gibraltar expansion/modernization project
Looking Ahead
New Higher Priced Hedges now in Effect
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
Jan-10 Apr-10 Jul-10 Oct-10
If copper price below, then options pay Taseko
If copper above, then Taseko paysCap Price
Collar Price
Looking Ahead
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10
Cop
per (
US
$/lb
)
$0
$20
$40
$60
$80
$100
$120
$140
$160
(Cru
de O
il, U
S$/
bl)
CopperCrude Oil
Naturally Hedged
If the price of copper declines, Gibraltar’s cash costs adjust accordingly
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10
Cop
per (
US
$/lb
)
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
(C$/
US
$)
CopperC$ / US$
Looking Ahead
Naturally Hedged
If the price of copper declines, Gibraltar’s cash costs adjust accordingly
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10
Cop
per (
US
$/lb
)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
(Bal
tic H
andy
Siz
e In
dex
CopperBHSI
Naturally Hedged
Looking Ahead
If the price of copper declines, Gibraltar’s cash costs adjust accordingly
Analyst Recommendations
Raymond James - Tom Meyer 7.00 Paradigm Capital - David Davidson 7.75 Credit Suisse - Alex Terentiew 6.00 Canaccord Capital - Orest Wowkodaw 6.40 Jennings Capital - Peter Campbell 7.00 CIBC - Ian Parkinson 7.50 BMO Capital Markets - David Cotterell 7.00 TD Newcrest - Craig Miller 7.50 Wellington West - Steve Parsons 7.00
Bloomberg Consensus: 7.02
12-MonthTarget Price
The Taseko Advantage
• ~$200 million cash on hand ($1/share)• Significant Cash flow at current metal prices
FinancialStrength
GrowthPotential
Stability
Long-LifeAssets
• Planned 60% copper production increase from Gibraltar over next 9 months
• Diversifying into major gold producer
• 8 million ounces of gold reserves (16 million ounces of gold resources)
• 6 billion pounds of copper reserves (11 billion pounds of copper resources)
• Assets located in secure political jurisdiction• Experienced, operations-focused management team
Market Capitalization = C$1.0 billion
Questions