Taseko Mines Limited · TSX:TKO
Taseko Mines — Investor Presentation (April 2011)
23 slides from Taseko Mines's investor presentation, April 2011
Slide 1: Setting the Standard in Mine Development
Setting the Standard in Mine Development April, 2011
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: The Taseko Advantage
The Taseko Advantage • ~$200 million cash on hand ($1/share) Financial • Significant cash flow at current metal prices Strength • Debt free • Diversified project pipeline of 100% owned, near-term gold, copper and Growth niobium projects • 90% copper production increase by 2014 • Assets located in se
Slide 4: Assets Located in British Columbia
Assets Located in British Columbia British Columbia Aley (Niobium) Mackenzie Gibraltar Harmony (Copper / Moly) (Gold) Williams Lake Prosperity (Gold / Copper) Vancouver
Slide 5: Financial Strength
Financial Strength Strong Balance Sheet $800 $700 $600 $500 (C$, millions) $400 $300 $200 $100 $0 2007 2008 2009 2010 Cash and Equivalents Total Assets Shareholders' Equity
Slide 6: Asset Stability: Gibraltar Copper Mine
Asset Stability Gibraltar Copper Mine Location: 65 km north of Williams Lake, British Columbia Ownership: 75% Mineral Reserves: 2.7 billion pounds recoverable copper under review 30 million pounds recoverable molybdenum Mine Type: Open-pit, 55,000 tpd mill throughput Mine Life: +20 years under revie
Slide 7: Asset Growth: GDP3 Project Scope and Reserve Update
Asset Growth Gibraltar Copper Mine GDP3 Project Scope • Construction of a new 55,000 tpd concentrator • Expansion of mining fleet to allow 85,000 tpd ore delivery; 330,000 tpd mining rate • Construction of a new molybdenum separation facility • Upgrade site infrastructure to support higher mining ra
Slide 8: Asset Growth: Project Rationale
Asset Growth Gibraltar Copper Mine Project Rationale • Based on a conservative $1.50/ pound margin, the project has a simple payback of 3 years • Project completion by December 2012 • Take advantage of current copper curve • Transitional growth until Prosperity Federal EA Certificate received • Low
Slide 9: Asset Growth: Production Profile
Asset Growth Gibraltar Copper Mine Production Profile • By 2013 copper production will have increased by 70% and molybdenum production will increased by 170% GDP3 Construction GDP3 Ramp Up Commenced Annual Estimated Production 2011 2012 2013 2014 2015 (million lbs) Copper 95 115 165 180 180 Molybden
Slide 10: Asset Growth: Capital Costs & Financing
Asset Growth Gibraltar Copper Mine Capital Costs & Financing Source of Funds: Use of Funds: C$M % of total C$M % of total Cash and debt* $ 176 54% Concentrator & Moly Plant $ 235 72% Equipment financing $ 90 28% Mining Equipment $ 90 28% JV Partner $ 59 18% Total $325 100% Total $325 100% *Company e
Slide 11: Asset Growth: Preliminary GDP3 Timeline
Asset Growth Gibraltar Copper Mine Preliminary GDP3 Timeline Drill Program Reserve update Project Engineering Procurement Construction Commissioning 2011 2012 2013 2014
Slide 12: Growth: Project Pipeline
Growth: Project Pipeline 100% Owned Assets British Columbia • Prosperity Gold/Copper Project Aley (Niobium) Mackenzie • Aley Niobium Project Gibraltar • Harmony Gold Project Harmony (Copper / Moly) (Gold) Williams Lake Prosperity (Gold / Copper) Vancouver
Slide 13: Growth: Prosperity Gold-Copper Project
Growth Prosperity Gold-Copper Project Location: 125 km south-west of Williams Lake, British Columbia Ownership: 100% 7.7 million ounces recoverable gold Mineral Reserves: 3.6 billion pounds recoverable copper Mine Type: Open-pit, 70,000 tpd mill throughput Mine Life: +20 years 5-year production prof
Slide 14: Project Economic Criteria: Prosperity Gold-Copper Project
Project Economic Criteria Prosperity Gold-Copper Project Old Project: Revised Project: 2005 Project Economic Criteria 2011 Project Economic Criteria Cu = US $1.50 Cu = US $2.25 Au = US $ 575 Au = US $ 875 $2.40 $1,200 $1.80 $900 (Au - US$/oz) (Cu - US$/lb) $1.20 $600 $0.60 $300 $0.00 $0 2005 2006 20
Slide 15: Growth: Prosperity Timeline
Growth Prosperity Gold-Copper Project Timeline Provincial EA Certificate Granted Mine Permit Process New Engineering for Project New CEAA Review Federal EA Certificate Detailed Facility Engineering & Site Prep Construction Commissioning 2010 2011 2012 2013 2014 2015 2016
Slide 16: Growth: Aley Niobium Project
Growth Aley Niobium Project Location: Northern British Columbia Ownership: 100% Mine Type: Open Pit, 5000 tpd mill throughput Mine Life: +20 years Niobium • Similar usage as molybdenum in steel • Specifically used in manufacturing high strength, low alloy steels • Green technologies, turbines, aeros
Slide 17: Aley Deposit History
Growth Aley Niobium Project Aley Deposit History Cominco: Discovered in 1980 • Spent $2 million on a 20 hole drill program from 1983-1986, outlined significant niobium mineralization • Divested in 2006, non-core Taseko: Acquired in 2007 for $5 million • Preliminary drilling in 2007, 18 holes which c
Slide 18: Copper-gold deposit comparison by gold resources
Total Au Resources (MM ozs) - 2 4 6 8 10 12 14 16 18 20 94M Pebble - Northern Dynasty Minerals 44M Reko Diq - Antofagasta Oyu Tolgoi - Ivanhoe Mines 32M Tampakan - Xstrata Lookout Hill - Ivanhoe Mines Salobo - Vale SA Prosperity - Taseko Mines Bougainville - Rio Tinto Frieda River - Xstrata Agua Ric
Slide 19: Appendix 2: Key Accomplishments
Appendix 2: Key Accomplishments January 2010 • Received British Columbia Environmental Assessment Certificate for Prosperity March 2010 • Completed transaction to sell 25% Gibraltar Mine for ~$187 million May 2010 • Signed gold stream agreement with Franco-Nevada to sell 22% of future gold productio
Slide 20: Appendix 3: Investment Summary
Appendix 3: Investment Summary Share Structure Cash on Hand: ~C$212, as at December 31, 2011 Listed: TSX; TKO / NYSE Amex; TGB S&P/TSX Composite : S&P/TSX Small Cap Indices: S&P/TSX Global Mining : S&P/TSX Global Base Metals Shares 188.9 million Outstanding: Market $1.1 billion Capitalization: 52 We
Slide 21: Appendix 4: Experienced Management Team
Appendix 4: Experienced Management Team Russell Hallbauer, P. Eng - President & CEO and Director – Mr. Hallbauer is a professional engineer with over 35 years of mining experience. He has a strong background in open pit and underground mining, overseeing operating joint ventures and revitalizing min
Slide 22: Appendix 4: Experienced Management Team
Appendix 4: Experienced Management Team Robert Rotzinger, P. Eng - General Manager, Projects – Robert is a mechanical engineer and has worked at the Gibraltar Mine since 1994 where he has taken on increasingly senior positions. He has been tasked with the management of diverse engineering, environme
Slide 23: Appendix 5: Reserves and Resources
Appendix 5: Reserves and Resources Prosperity Mineral Reserves @ C$5.50 NSR/t Cut-Off1 Size Grade Recoverable Metal Contained Metal M Tonnes Au (g/t) Cu (%) Au (M oz) Cu (B lb) Au (M oz) Cu (B lb) P&P reserves 830 0.41 0.23 7.7 3.6 11.0 4.2 M&I Resources 181 0.40 0.30 - - 2.3 1.1 Total 1,011 0.41 0.