Taseko Mines Limited · TSX:TKO
Taseko Mines — Shareholder Meeting (March 2007)
29 slides from Taseko Mines's shareholder meeting presentation, Mar 15, 2007
Slide 1: 2007 Annual General Meeting
2007Annual 2007 AnnualGeneral GeneralMeeting Meeting March 15, 2007 March 15, 2007 RussellHallbauer Russell Hallbauer President&&CEO President CEO
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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
Slide 3: 2006 – An Excellent Year
2006 – An Excellent Year 35 33% Return 28 on Equity $32.9 Million Net Earnings (C$, millions) 21 $55.4 Million Cash Flow 14 $89.4 Million Cash on Hand 7 0 Q1 Q2 Q3 Q4
Slide 4: 2006 – An Excellent Year
2006 – An Excellent Year 55 $42 Million 45 EBITDA 35 $32.9 Million Net Earnings (C$, millions) 25 $55.4 Million Cash Flow 15 $89.4 Million Cash on Hand 5 -5 Q1 Q2 Q3 Q4
Slide 5: 2006 – An Excellent Year
2006 – An Excellent Year 90 60 $32.9 Million Net Earnings (C$, millions) $55.4 Million Cash Flow 30 $89.4 Million Cash on Hand 0 Q1 Q2 Q3 Q4
Slide 6: 15-Month Share Appreciation
2006 – An Excellent Year $4.00 $3.00 15-Month Share Appreciation (Oct/05-Dec/06) $2.00 = 129% $1.00 $0.00 Oct-05 Feb-06 Jun-06 Oct-06
Slide 7: Corporate Achievements
2006 – Executing our Strategy Corporate Achievements • March/06 – Graduate to TSX • July/06 – Dissolve Gibraltar JV with Ledcor, assuming full responsibility for operations as of November/06 • August/06 – Appoint Mr. William Armstrong to Board of Directors • August/06 – Complete US$30 million conver
Slide 8: Gibraltar – Expansion / Modernization
2006 – Executing our Strategy Gibraltar – Expansion / Modernization Concentrator increased to 46,000 tons per day = 100 million lbs capacity in 2008 Capital Cost Estimate ~$65 million = C$6,500/ton/day of installed capacity • March/06 – Board approved capital expenditure • May/06 – Semi Autogenous G
Slide 9: Gibraltar – Expansion / Modernization
2006 – Executing our Strategy Gibraltar – Expansion / Modernization March 2007 August 2006
Slide 10: Gibraltar – Expansion / Modernization
2006 – Executing our Strategy Gibraltar – Expansion / Modernization February 2007 November 2006
Slide 11: Gibraltar – Expansion / Modernization
2006 – Executing our Strategy Gibraltar – Expansion / Modernization March 2007 March 2007
Slide 12: Gibraltar – SX-EW Plant
2006 – Executing our Strategy Gibraltar – SX-EW Plant Originally built in 1986 = produced 85 Mlbs of cathode over 12 years Full annual capacity of up to 10 Mlbs = expect to produce 3.5 Mlbs in 2007 • April/06 – Rehabilitation of SX-EW commenced • December/06 – SX-EW plant commissioning • January/07
Slide 13: Gibraltar – SX-EW Plant
2006 – Executing our Strategy Gibraltar – SX-EW Plant January 2007 January 2007
Slide 14: Gibraltar – Drilling / Reserve Expansion
2006 – Executing our Strategy Gibraltar – Drilling / Reserve Expansion 194 million tons of reserves at beginning of 2006 = 15 year mine life 67 drill holes completed in 2006 = mine life increase to 21 years • March/06 – $2 million drilling program commenced • August/06 – Preliminary results from dri
Slide 15: Gibraltar – Drilling / Reserve Expansion
2006 – Executing our Strategy Gibraltar – Drilling / Reserve Expansion Connector Pit Gibraltar Pollyanna Pit East Pit Granite Current ? Pit Reserves Future Pit Limits Proposed Drill Holes Competed Holes 2007 2006 Holes 2005 Holes
Slide 16: Prosperity – Feasibility Study
2006 – Executing our Strategy Prosperity – Feasibility Study Pre-feasibility level study results announced = 480 million tonne reserve Re-design of the concentrator = significant reduction in capital costs • January/07 – Positive results from pre-feasibility study • 480 million tonne reserve grading
Slide 17: Prosperity – Environmental Assessment
2006 – Executing our Strategy Prosperity – Environmental Assessment Environmental and socio-economic impact = input and consultation with communities EA Scheduled for Submission by April 2007 • Ongoing discussions with local communities • Prosperity open house held in Williams Lake • Baseline studie
Slide 18: 2007 Key Objectives – Corporate
2007 Key Objectives Corporate Target Date (Calendar Year) • Initiate a strategic acquisition of a project or company Q4/07 • Improve corporate and mine management by attracting experienced personnel Ongoing • Implement training initiatives Q4/07 • Unlock value of Prosperity in Taseko’s share price O
Slide 19: Comparable Gold In Situ Valuations
2007 Key Objectives Comparable Gold In Situ Valuations Market Cap Au Eq. Resources Company Project Location(s) Market Cap/Oz. (C$ M) (M ozs.) Aurizon $560 Canada 2.8 $198 Cumberland $520 Canada 3.8 $135 Etruscan $405 West Africa 2.4 $170 Kimber $95 Mexico 1.7 $55 Miramar $950 Canada 9.8 $95 Palmarej
Slide 20: 2007 Key Objectives – Gibraltar
2007 Key Objectives Gibraltar Target Date (Calendar Year) • Rehabilitate SX-EW plant Complete • Mill modernization • Phase 1 / install 1st float cell Complete • Phase 2 / install 1st bank of float cells In Progress • Phase 3 / install 2nd bank of float cells Q3/07 • 2007 reserve update Q3/07 • Engin
Slide 21: Mill Modernization & Expansion
Mill Modernization & Expansion <1” 6” Fine Course Secondary Secondary Ore Bin Ore Stockpile Primary Crusher Crusher Crusher Rod Ball Rod Ball Rod Ball Mill Mill Mill Mill Mill Mill Flotation Recovery System Concentrator Layout Currently
Slide 22: Mill Modernization & Expansion
Mill Modernization & Expansion <1” 6” Fine Course Secondary Secondary Ore Bin Ore Stockpile Primary Crusher Crusher Crusher Rod Ball Rod Ball Rod Ball Mill Mill Mill Mill Mill Mill New Float Cell Flotation Recovery System Phase 1 - Complete
Slide 23: Mill Modernization & Expansion
Mill Modernization & Expansion <1” 6” Fine Course Secondary Secondary Ore Bin Ore Stockpile Primary Crusher Crusher Crusher Rod Ball Rod Ball Rod Ball Mill Mill Mill Mill Mill Mill Flotation Recovery System Phase 2 – Q2/07
Slide 24: Mill Modernization & Expansion
Mill Modernization & Expansion <1” 6” Fine Course Secondary Secondary Ore Bin Ore Stockpile Primary Crusher Crusher Crusher Rod Ball Rod Ball Rod Ball Mill Mill Mill Mill Mill Mill Flotation Recovery Phase 3 – Q3/07 System
Slide 25: Mill Modernization & Expansion
Mill Modernization & Expansion 6” Course Ore Stockpile Primary Crusher SAG Mill Distributor Ball Ball Ball Ball Ball Ball Mill Mill Mill Mill Mill Mill Flotation Recovery Phase 4 – Q4/07 System
Slide 26: 2007 Key Objectives – Prosperity
2007 Key Objectives Prosperity Target Date (Calendar Year) • Complete 43-101 reserve Complete • Complete Feasibility Study Q2/07 • Environmental Assessment & Socio- Economic impact studies Q3/07
Slide 27: Outlook – Increasing Production Profile
Outlook Increasing Production Profile 250 350 - 20% phase 2 expansion 300 200 - Restart of SX-EW Prosperity - 15% grade improvement 250 (Au - ozs, thousands) (Cu - lbs, millions) 150 - 30% mill expansion complete 200 150 100 100 Gibraltar Gibraltar Gibraltar Prosperity 50 Gibraltar Gibraltar Gibralt
Slide 28: Outlook – Forward Copper Price
Outlook Forward Copper Price $3.00 *Forward Price Curve 63-Month Copper Price: US$1.74/lb Current Copper Price: US$2.86/lb $2.00 (US$ per pound) Gross Margin Forward Production Cash Cost $1.00 $0.00 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 *LME forward price curve as of Mar. 8, 2007. Note: Cash cos
Slide 29: Outlook – Forward Copper Price
Outlook Forward Copper Price $3.00 *Forward Price Curve 63-Month Copper Price: US$1.74/lb Current Copper Price: US$2.86/lb $2.00 (US$ per pound) Gross Margin Forward Production Cash Cost $1.00 Blended Cash Cost Including Prosperity $0.00 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 *LME forward price c