Taseko Reports $36 Million of Adjusted EBITDA FOR First Quarter 2023
TASEKO REPORTS $36 MILLION OF ADJUSTED EBITDA
FOR FIRST QUARTER 2023
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 87.5% owned Gibraltar Mine is located north of the City of Williams Lake in south-central British Columbia. Production and sales volumes stated in this release are on a
100% basis unless otherwise indicated.
VANCOUVER, BC
,
May 3, 2023
/CNW/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or
the "Company") reports first quarter 2023 Adjusted EBITDA* of
$36 million
, Earnings from mining operations before depletion*
of
$41 million
and Cash flows provided by operations of
$28 million
. Adjusted net income* was
$5 million
, or
$0.02
per share.
Total Operating Costs (C1)* (US$ per pound) (CNW Group/Taseko Mines Limited)
Stuart McDonald
, President and CEO of Taseko, stated, "An average realized copper price of
US$4.02
per pound in the first
quarter helped to drive our strong financial performance. Production in the first quarter was 25 million pounds of copper and
234 thousand pounds of molybdenum. Copper head grades for the period were on plan, averaging 0.22%, but production was
slightly below plan due to unexpected mill downtime and operational issues with the primary crushers. Mining advanced deeper
into the
Gibraltar
pit which is the sole source of mill feed this year, and waste stripping ramped up in the new Connector pit.
Initial tons of oxide ore were also mined from the Connector pit and have been placed on leach pads for future production
when the Gibraltar SX/EW plant restarts.
We have decided to defer the in-pit crusher move until the spring of 2024, to coincide with planned work on SAG mill #1 to
minimize concentrator downtime."
Mr. McDonald added, "In the first quarter, we increased our effective interest in
Gibraltar
to 87.5%, after acquiring a 12.5%
stake from one of our joint venture partners. The transaction closed in mid-March and provides immediate 17% growth in our
attributable copper production. Additionally, the five-year deferred payment structure allows Taseko to focus our financial
resources on the construction of the commercial facility at
Florence
."
"In March, we filed a new technical report
**
for the Florence Copper project. The report includes updated capital cost
estimates based on detailed engineering and recent contractor and vendor quotations. Operating and sustaining capital costs
have also been updated, and refinements have been made to the operating models based on the Production Test Facility
("PTF") results. The project has been significantly de-risked in recent years and has an after-tax Net Present Value (8%) of
US$930 million
using a long-term copper price of
US$3.75
per pound. The EPA permitting process continues to advance and
we expect a favourable outcome in the coming months. We are ready to start construction of the commercial production facility
as soon as the final Underground Injection Control permit is issued," continued Mr. McDonald.
"Considering global economic uncertainties, copper markets remain remarkably stable and continue to support a healthy price
of about
US$3.85
per pound. Demand for our product remains strong and the long-term supply/demand fundamentals appear
to be favourable. In the short-term, we continue to maintain our price protection strategy, which provides a minimum copper
price of
US$3.75
per pound for most of
Gibraltar's
production for the balance of 2023. Our original production guidance of 115
million pounds (+/-5%) for 2023 remains unchanged," concluded Mr. McDonald.
*Non-GAAP performance measure. See end of news release
**NI 43-101 Technical Report, Florence Copper Project, Pinal County, Arizona" dated March 30, 2023. The report has been prepared for Taseko Mines Limited, a producing issuer, under the supervision of Richard Tremblay, P.Eng.,
MBA, Richard Weymark, P.Eng., MBA, and Robert Rotzinger, P.Eng. Mr. Tremblay is employed by the Company as Sr. Vice President Operations, Mr. Weymark is Vice President Engineering and Robert Rotzinger is Vice President
Capital Projects. All three are "Qualified Persons" as defined in National Instrument 43–101 Standards of Disclosure for Mineral Projects ("NI 43–101").
First Quarter Review
In
March 2023
, the Company announced the results of recent technical work and updated economics for the Florence
Copper project. Including updated modelling, capital expenditures and operating costs, the Florence Copper project now
has an after-tax net present value of
US$930 million
(at an 8% discount rate) with an internal rate of return of 47% and a
2.6 year payback period;
First quarter earnings from mining operations before depletion and amortization* was
$41.1 million
, Adjusted EBITDA* was
$36.1 million
, and cash flows from operations was
$28.0 million
;
GAAP net income was
$4.4 million
(
$0.02
per share) and Adjusted net income* was
$5.1 million
(
$0.02
per share);
Gibraltar
produced 24.9 million pounds of copper for the quarter which was slightly below expectations due to unplanned
mill downtime that was necessary to address crusher maintenance and other operational issues;
Copper head grades in the quarter were 0.22%, similar to recent quarters and in line with management's expectation;
Gibraltar
sold 26.6 million pounds of copper in the quarter (100% basis) which contributed to revenue for Taseko of
$115.5 million
. The average realized copper price was
US$4.02
per pound for the first quarter, compared to the LME
average price of
US$4.05
per pound;
Total site costs* in the first quarter was
$112.8 million
on a 100% basis,
$6.6 million
higher than the previous quarter due
to greater diesel consumption from the higher mining rates and additional costs incurred for mill maintenance;
On
March 15, 2023
, the Company completed its acquisition of an additional 12.5% interest in the
Gibraltar
mine from
Sojitz Corporation ("Sojitz") and now holds an effective 87.5% interest in the
Gibraltar
mine;
In
February 2023
, the Company entered into an agreement to extend the maturity date of its revolving credit facility by an
additional year to
July 2026
. In addition to the one-year extension, the lender has also agreed to an accordion feature,
which will allow the amount of the credit facility to be increased to
US$80 million
, subject to credit approval and other
conditions; and
The Company had a closing cash balance of
$102 million
at
March 31, 2023
.
HIGHLIGHTS
Operating Data (Gibraltar - 100% basis)
Three months ended March 31,
2023
2022
Change
Tons mined (millions)
24.1
20.3
3.8
Tons milled (millions)
7.1
7.0
0.1
Production (million pounds Cu)
24.9
21.4
3.5
Sales (million pounds Cu)
26.6
27.4
(0.8)
Financial Data
Three months ended March 31,
(Cdn$ in thousands, except for per share amounts)
2023
2022
Change
Revenues
115,519
118,333
(2,814)
Earnings from mining operations before depletion and amortization*
41,139
42,773
(1,634)
Cash flows provided by operations
27,999
51,753
(23,754)
Adjusted EBITDA
*
36,059
38,139
(2,080)
Adjusted net income
*
5,088
6,162
(1,074)
Per share - basic ("Adjusted EPS")
*
0.02
0.02
-
Net income (GAAP)
4,439
5,095
(656)
Per share - basic ("EPS")
0.02
0.02
-
REVIEW OF OPERATIONS
Gibraltar
mine
Operating data (100% basis)
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Tons mined (millions)
24.1
22.9
23.2
22.3
20.3
Tons milled (millions)
7.1
7.3
8.2
7.7
7.0
Strip ratio
1.9
1.1
1.5
2.8
2.6
Site operating cost per ton milled (Cdn$)*
$13.54
$13.88
$11.33
$11.13
$11.33
Copper concentrate
Head grade (%)
0.22
0.22
0.22
0.17
0.19
Copper recovery (%)
80.7
83.4
77.1
77.3
80.2
Production (million pounds Cu)
24.9
26.7
28.3
20.7
21.4
Sales (million pounds Cu)
26.6
25.5
26.7
21.7
27.4
Inventory (million pounds Cu)
3.7
5.4
4.2
2.7
4.0
Molybdenum concentrate
Production (thousand pounds Mo)
234
359
324
199
236
Sales (thousand pounds Mo)
225
402
289
210
229
Per unit data (US$ per pound produced)
*
Site operating costs
*
$2.82
$2.79
$2.52
$3.25
$2.95
By-product credits
*
(0.37)
(0.40)
(0.15)
(0.15)
(0.18)
Site operating costs, net of by-product credits
*
$2.45
$2.39
$2.37
$3.10
$2.77
Off-property costs
0.37
0.36
0.35
0.37
0.36
Total operating costs (C1)
*
$2.82
$2.75
$2.72
$3.47
$3.13
OPERATIONS ANALYSIS
First Quarter Review
Gibraltar
produced 24.9 million pounds of copper for the quarter, a 7% decrease over the fourth quarter. Copper production in
the quarter was impacted by low mill availabilities due to poor crusher performance and extended mill shutdowns to
troubleshoot mechanical issues. As a result, mill throughput was approximately 12% below plan for the period.
Copper head grades of 0.22% were in line with recent quarters and management expectations. Copper recoveries in the first
quarter were 80.7% and while above the average achieved for 2022, were impacted by operating variability in the
concentrators.
Mine operations went as planned in the quarter and a total of 24.1 million tons were mined. The ore stockpiles increased by
0.4 million tons in the first quarter and 0.8 million tons of oxide ore from the Connector pit was placed on the heap leach pads.
This oxide ore will be processed in future years when
Gibraltar's
solvent extraction and electrowinning ("SX/EW") plant is
restarted.
Total site costs* at
Gibraltar
of
$112.8 million
were
$6.6 million
higher than last quarter due to greater diesel fuel consumption
from the higher mining rates and increased mill maintenance costs incurred to address mechanical issues.
Molybdenum production was 234 thousand pounds in the first quarter. At an average molybdenum price of
US$32.79
per
pound and with inclusion of the impact of favorable provisional price adjustments, molybdenum generated a by-product credit of
US$0.37
per pound of copper produced in the first quarter.
Off-property costs per pound produced* were
US$0.37
and were generally in line with recent quarters.
Total operating costs per pound produced (C1)* were
US$2.82
for the quarter, compared to
US$3.13
in the same period in
2022 with key variances summarized in the bridge graph below:
GIBRALTAR
OUTLOOK
The
Gibraltar
pit will continue to be the sole source of mill feed in 2023 and the quarterly production profile is expected to be
less variable than 2022 due to improving quality and consistency of ore as mining progresses deeper into the pit. Waste
stripping will continue in the new Connector pit and initial mill feed from this pit is planned for 2024. The in-pit crusher that
currently sits over the Connector ore zone was planned to be relocated in the third quarter of this year, but will now be
deferred to spring of 2024. This results in increased mill production in the current year, and allows the timing of the crusher
move to align with a maintenance shutdown that is required for the mill #1 SAG mill.
The technical information contained in this MD&A related to the
Gibraltar
mine has been reviewed and approved by
Richard
Weymark
, P.Eng., MBA, VP Engineering, who is a Qualified Person in accordance with the requirements of NI 43-101.
Gibraltar
is expected to produce 115 million pounds of copper (+/-5%) in 2023 on a 100% basis.
Strong metal prices combined with our copper hedge protection continues to provide stable operating margins at the
Gibraltar
mine. Copper prices in the first quarter averaged
US$4.05
per pound which is slightly higher than the 2022 average of
US$3.99
per pound. Molybdenum prices are currently
US$20.88
per pound, which is 11% higher than the average price in 2022. The
Company currently has copper price collar contracts in place that secure a minimum copper price of
US$3.75
per pound for 52
million pounds of copper until
December 31, 2023
.
ACQUISITION OF ADDITIONAL 12.5% INTEREST IN
GIBRALTAR
On
March 15, 2023
, the Company completed the acquisition of an additional 12.5% interest in the
Gibraltar
mine from Sojitz.
Gibraltar
is operated through a joint venture which is owned 75% by Taseko and 25% by Cariboo Copper Corporation
("Cariboo"). Under the terms of the agreement, Taseko has acquired Sojitz's 50% interest in Cariboo and now holds an
effective 87.5% interest in the
Gibraltar
mine. The other 50% of Cariboo is held equally by Dowa Metals & Mining Co., Ltd.
("Dowa") and Furukawa Co. Ltd. ("Furukawa").
The acquisition price consists of a minimum amount of
$60 million
payable over a five-year period and potential contingent
payments depending on
Gibraltar
mine copper revenues and copper prices over the next five years. An initial
$10 million
has
been paid to Sojitz on closing and the remaining minimum amount will be paid in
$10 million
annual instalments over the next five
years. There is no interest payable on the minimum amounts and the amounts payable to Sojitz are secured against
shareholder loans owing from Cariboo to Taseko.
The contingent payments are payable annually for five years only if the average LME copper price exceeds
US$3.50
per pound
in a year. The payments will be calculated by multiplying
Gibraltar
mine copper revenues by a price factor, which is based on a
sliding scale ranging from 0.38% at
US$3.50
per pound copper to a maximum of 2.13% at
US$5.00
per pound copper or
above. Total contingent payments cannot exceed
$57 million
over the five-year period, limiting the acquisition cost to a
maximum of
$117 million
.
Taseko will become a party to the existing Cariboo shareholders agreement with Dowa and Furukawa. There will be no change
to the offtake contracts established in 2010 and Dowa and Furukawa will continue to receive 30% of
Gibraltar's
copper
concentrate offtake. There will be no impact to the operation of the Gibraltar Joint Venture.
FLORENCE
COPPER
The Company is awaiting the issuance of the final Underground Injection Control ("UIC") permit from the U.S. Environmental
Protection Agency ("EPA"), which is the final permitting step required prior to construction commencing on the commercial
production facility. The EPA is currently addressing comments that were received during the public comment period, which
was held in the fall of 2022. Public comments submitted to the EPA have demonstrated strong support for the Florence
Copper project among local residents, business organizations, community leaders and state-wide organizations.
In
December 2022
, the Company signed agreements with Mitsui & Co. (U.S.A.) Inc. ("Mitsui") to form a strategic partnership
to develop Florence Copper. Mitsui has committed to an initial investment of
US$50 million
which is conditional on receipt of
the final UIC permit, with proceeds to be used for construction of the commercial production facility. The initial investment will
be in the form of a copper stream agreement on 2.67% of the copper produced at Florence Copper. In addition, Mitsui has the
option to invest an additional
US$50 million
(for a total investment of
US$100 million
) for a 10% equity interest in Florence
Copper.
Detailed engineering and design for the commercial production facility is substantially completed and procurement activities are
well advanced. The Company has purchased the major processing equipment associated with the SX/EW plant and the
equipment has now been delivered to the
Florence
site. The Company is well positioned to transition into construction once the
final UIC permit is received. The Company incurred
$9.9 million
of capital expenditures at the
Florence
project in the first
quarter of 2023.
In
March 2023
, the Company announced the results of recent technical work and updated economics for the Florence Copper
project. The Company has filed a new technical report entitled "NI 43-101 Technical Report – Florence Copper Project,
Pinal
County, Arizona
" dated
March 30, 2023
(the "Technical Report") on SEDAR. The Technical Report was prepared in
accordance with NI 43-101 and incorporates updated capital and operating costs for the commercial production facility and
refinements made to the operating models, based on the Production Test Facility ("PTF") results.
The technical work completed by Taseko in recent years has been extensive and has de-risked the project significantly. The
PTF operated successfully over an 18-month period and provided a valuable opportunity to test operational controls and
strategies which will be applied in future commercial operations. In addition, a more sophisticated leaching model has been
developed and calibrated to the PTF wellfield performance. This detailed modeling data, along with updated costing, has been
used to update assumptions for the ramp up and operation of the commercial wellfield and processing facility.
Florence Copper Project Highlights:
Net present value of
US$930 million
(after-tax at an 8% discount rate)
Internal rate of return of 47% (after-tax)
Payback period of 2.6 years
Operating costs (C1) of
US$1.11
per pound of copper
Annual production capacity of 85 million pounds of LME grade A cathode copper
22 year mine life
Total life of mine production of 1.5 billion pounds of copper
Total estimated initial capital cost of
US$232 million
remaining
Long-term copper price of
US$3.75
per pound
The technical information contained in this MD&A related to the Florence Copper Project has been prepared by
Richard
Weymark
, P.Eng., MBA, VP Engineering,
Rob Rotzinger
, P.Eng., VP Capital Projects, and
Richard Tremblay
, P.Eng., MBA,
Senior VP Operations, who are Qualified Persons in accordance with the requirements of NI 43-101.
LONG-TERM GROWTH STRATEGY
Taseko's strategy has been to grow the Company by acquiring and developing a pipeline of complementary projects focused
on copper in stable mining jurisdictions. We continue to believe this will generate long-term returns for shareholders. Our other
development projects are located in British Columbia.
Yellowhead Copper Project
Yellowhead Mining Inc. ("Yellowhead") has an 817 million tonnes reserve and a 25-year mine life with a pre-tax net present
value of
$1.3 billion
at an 8% discount rate using a
US$3.10
per pound copper price based on the Company's 2020 NI 43-101
technical report. 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 preparing to advance into the environmental assessment process and is undertaking some additional
engineering work in conjunction with ongoing engagement with local communities including First Nations. The Company is also
collecting baseline data and modeling which will be used to support the environmental assessment and permitting of the
project.
The technical information contained in this MD&A related to the Yellowhead Copper Project has been prepared by
Richard
Weymark
, P.Eng., MBA, VP Engineering, who is a Qualified Person in accordance with the requirements of NI 43-101.
New Prosperity Gold-Copper Project
In late 2019, the Tŝilhqot'in Nation, as represented by Tŝilhqot'in National Government, and Taseko entered into a confidential
dialogue, with the involvement of the Province of
British Columbia
, in order to obtain a long-term resolution of the conflict
regarding Taseko's proposed copper-gold mine previously known as New Prosperity, acknowledging Taseko's commercial
interests and the Tŝilhqot'in Nation's opposition to the project.
This dialogue has been supported by the parties' agreement, beginning
December 2019
, to a series of one-year standstills on
certain outstanding litigation and regulatory matters relating to Taseko's tenures and the area in the vicinity of Teẑtan Biny (Fish
Lake). The standstill agreement was most recently extended for a fourth one-year term in
December 2022
, with the goal of
providing time and opportunity for the Tŝilhqot'in Nation and Taseko to negotiate a final resolution.
The dialogue process has made tangible progress in the past 12 months but is not complete. In agreeing to extend the
standstill through 2023, the Tŝilhqot'in Nation and Taseko acknowledge the constructive nature of discussions to date, and the
future opportunity to conclude a long-term and mutually acceptable resolution of the conflict that also makes an important
contribution to the goals of reconciliation in
Canada
.
Aley Niobium Project
Environmental monitoring and product marketing initiatives on the Aley niobium project continue. The converter pilot test is
ongoing and is providing additional process data to support the design of the commercial process facilities and will provide final
product samples for marketing purposes. The Company has also initiated a scoping study to investigate the potential
production of niobium oxide at Aley to supply the growing market for niobium-based batteries.
The Company will host a telephone conference call and live webcast on Thursday, May 4, 2023 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.
To join the conference call without operator assistance, you may pre-register at
https://bit.ly/3KQ1b1u
to receive an instant automated call back just prior to the start of the conference call. Otherwise, the conference call may be
accessed by dialing 888-390-0546 toll free, 416-764-8688 in Canada, or online at
tasekomines.com/investors/events
.
The conference call will be archived for later playback until May 19, 2022 and can be accessed by dialing 888-390-0541 toll free, 416-764-8677 in Canada, or online at tasekomines.com/investors/events using the passcode
707779#.
Stuart McDonald
President & CEO
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.
(Cdn$ in thousands, unless otherwise indicated) –
75% basis (except for Q1 2023)
2023
Q1
1
2022
Q4
2022
Q3
2022
Q2
2022
Q1
Cost of sales
86,407
73,112
84,204
90,992
89,066
Less:
Depletion and amortization
(12,027)
(10,147)
(13,060)
(15,269)
(13,506)
Net change in inventories of finished goods
(399)
1,462
2,042
(3,653)
(7,577)
Net change in inventories of ore stockpiles
5,561
18,050
3,050
(3,463)
(3,009)
Transportation costs
(5,104)
(6,671)
(6,316)
(4,370)
(5,115)
Site operating costs
74,438
75,806
69,920
64,237
59,859
Less by-product credits:
Molybdenum, net of treatment costs
(9,208)
(11,022)
(4,122)
(3,023)
(3,831)
Silver, excluding amortization of deferred revenue
(160)
263
25
36
202
Site operating costs, net of by-product credits
65,070
65,047
65,823
61,250
56,230
Total copper produced (thousand pounds)
19,491
20,020
21,238
15,497
16,024
Total costs per pound produced
3.34
3.25
3.10
3.95
3.51
Average exchange rate for the period (CAD/USD)
1.35
1.36
1.31
1.28
1.27
Site operating costs, net of by-product credits
(US$ per pound)
2.47
2.39
2.37
3.10
2.77
Site operating costs, net of by-product credits
65,070
65,047
65,823
61,250
56,230
Add off-property costs:
Treatment and refining costs
4,142
3,104
3,302
2,948
2,133
Transportation costs
5,104
6,671
6,316
4,370
5,115
Total operating costs
74,316
74,822
75,441
68,568
63,478
Total operating costs (C1) (US$ per pound)
2.82
2.75
2.72
3.47
3.13
1
Q1 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.
Total Site Costs
Total site costs is comprised of the site operating costs charged to cost of sales as well as mining costs capitalized to
property, plant and equipment in the period. This measure is intended to capture Taseko's share of the total site operating
costs incurred in the quarter at the
Gibraltar
mine calculated on a consistent basis for the periods presented.
(Cdn$ in thousands, unless otherwise indicated) –
75% basis (except for Q1 2023)
2023
Q1
1
2022
Q4
2022
Q3
2022
Q2
2022
Q1
Site operating costs
74,438
75,806
69,920
64,237
59,859
Add:
Capitalized stripping costs
12,721
3,866
1,121
11,887
15,142
Total site costs – Taseko share
87,159
79,672
71,041
76,124
75,001
Total site costs – 100% basis
112,799
106,230
94,721
101,500
100,002
1
Q1 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.
Adjusted net income (loss)
Adjusted net income (loss) removes the effect of the following transactions from net income as reported under IFRS:
Unrealized foreign currency gain/loss;
Unrealized gain/loss on derivatives; and
Loss on settlement of long-term debt and call premium, including realized foreign exchange gains.
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.
(Cdn$ in thousands, except per share amounts)
2023
Q1
2022
Q4
2022
Q3
2022
Q2
Net income (loss)
4,439
(2,275)
(23,517)
(5,274)
Unrealized foreign exchange (gain) loss
(950)
(5,279)
28,083
11,621
Unrealized (gain) loss on derivatives
2,190
20,137
(72)
(30,747)
Estimated tax effect of adjustments
(591)
(5,437)
19
8,302
Adjusted net income (loss)
5,088
7,146
4,513
(16,098)
Adjusted EPS
0.02
0.02
0.02
(0.06)
(Cdn$ in thousands, except per share amounts)
2022
Q1
2021
Q4
2021
Q3
2021
Q2
Net income
5,095
11,762
22,485
13,442
Unrealized foreign exchange (gain) loss
(4,398)
(1,817)
9,511
(3,764)
Unrealized (gain) loss on derivatives
7,486
4,612
(6,817)
370
Estimated tax effect of adjustments
(2,021)
(1,245)
1,841
(100)
Adjusted net income
6,162
13,312
27,020
9,948
Adjusted EPS
0.02
0.05
0.10
0.04
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 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 derivatives;
Amortization of share-based compensation expense.
(Cdn$ in thousands)
2023
Q1
2022
Q4
2022
Q3
2022
Q2
Net income (loss)
4,439
(2,275)
(23,517)
(5,274)
Add:
Depletion and amortization
12,027
10,147
13,060
15,269
Finance expense
12,309
10,135
12,481
12,236
Finance income
(921)
(700)
(650)
(282)
Income tax expense
3,356
1,222
3,500
922
Unrealized foreign exchange (gain) loss
(950)
(5,279)
28,083
11,621
Unrealized (gain) loss on derivatives
2,190
20,137
(72)
(30,747)
Amortization of share-based compensation expense (recovery)
3,609
1,794
1,146
(2,061)
Adjusted EBITDA
36,059
35,181
34,031
1,684
(Cdn$ in thousands)
2022
Q1
2021
Q4
2021
Q3
2021
Q2
Net income
5,095
11,762
22,485
13,442
Add:
Depletion and amortization
13,506
16,202
17,011
17,536
Finance expense
12,155
12,072
11,875
11,649
Finance income
(166)
(218)
(201)
(184)
Income tax expense
1,188
9,300
22,310
7,033
Unrealized foreign exchange (gain) loss
(4,398)
(1,817)
9,511
(3,764)
Unrealized (gain) loss on derivatives
7,486
4,612
(6,817)
370
Amortization of share-based compensation expense
3,273
1,075
117
1,650
Adjusted EBITDA
38,139
52,988
76,291
47,732
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)
2023
2022
Earnings from mining operations
29,112
29,267
Add:
Depletion and amortization
12,027
13,506
Earnings from mining operations before depletion and amortization
41,139
42,773
Site operating costs per ton milled
(Cdn$ in thousands, except per ton milled amounts)
2023
Q1
1
2022
Q4
2022
Q3
2022
Q2
2022
Q1
Site operating costs (included in cost of sales)
74,438
75,806
69,920
64,237
59,859
Tons milled (thousands) (75% basis except for Q1 2023)
5,498
5,462
6,172
5,774
5,285
Site operating costs per ton milled
$13.54
$13.88
$11.33
$11.13
$11.33
1
Q1 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the Company's Gibraltar mine ownership from 75% to 87.5%.
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 included but are not limited to:
uncertainties about the effect of COVID-19 and the response of local, provincial, federal and international governments to
the threat of COVID-19 on our operations (including our suppliers, customers, supply chain, employees and contractors)
and economic conditions generally and in particular with respect to the demand for copper and other metals we produce;
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 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.
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For further information:
For further information on Taseko, please see the Company's website at www.tasekomines.com or
contact: Brian Bergot, Vice President, Investor Relations - 778-373-4554, toll free 1-800-667-2114
CO: Taseko Mines Limited
CNW 17:55e 03-MAY-23