Taseko Reports Fourth Quarter and Annual Earnings
TASEKO REPORTS FOURTH QUARTER AND
ANNUAL EARNINGS
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 and sales volumes stated in this release are on a 100% basis unless otherwise indicated.
VANCOUVER, BC
,
Feb. 23, 2023
/CNW/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE:
TKO) ("Taseko" or the "Company") reports Adjusted EBITDA* of
$109 million
and Earnings from mining
operations before depletion* of
$106 million
for the full year 2022. Revenues for the year were
$392 million
and
Adjusted net income* was
$1.7 million
, or
$0.01
per share. In the fourth quarter 2022, Taseko generated
Adjusted EBITDA* of
$35 million
,
$38 million
of earnings from mining operations before depletion* and Adjusted
net income* of
$7 million
, or
$0.02
per share.
Stuart McDonald
, President and CEO of Taseko, commented, "The upward move in copper and molybdenum
prices during the fourth quarter helped drive stronger financial performance in the period. Fourth quarter
earnings from mining operations before depletion were 103% higher than the third quarter and Adjusted
EBITDA was 3% higher. Annual earnings for 2022 were affected by lower average copper prices (
US$3.99
/lb.
compared to
US$4.23
/lb. in 2021) and higher production costs related to fuel price increases and lower
production.
Average head grade for the year was 20% below the life of mine reserve average, and a site-wide power
outage late in the year also contributed to the lower annual copper production of 97 million pounds. Despite the
mill downtime in the fourth quarter,
Gibraltar
produced 27 million pounds of copper. Recoveries in the fourth
quarter improved to 83%, an 8% increase over the prior quarter due to better quality ore."
Mr. McDonald added, "The quarterly production profile in 2023 is expected to be less variable than the last two
years and we believe there is potential for mill throughput to average above design capacity. An in-pit crusher
move is scheduled for the third quarter which will partially shut down ore processing for approximately two
weeks. We expect annual copper production
at Gibraltar Mine
to increase to 115 million pounds (+/-5%) in
2023."
"Yesterday we announced an agreement with Sojitz Corporation to acquire their 12.5% interest in
Gibraltar
Mine, which increases our economic interest to 87.5%. This is an attractive transaction that provides
immediate production and earnings growth, and we maintain the financial capacity to fund the construction of
our Florence Copper project. The acquisition price includes a minimum amount of
C$60 million
payable over a
five-year period and potential contingent payments based on
Gibraltar
mine revenues and copper prices over
the next five years. An initial
C$10 million
will be paid to Sojitz upon closing and the remaining minimum amount
will be paid in
C$10 million
annual instalments over the next five years (see news release dated
February 22,
2023
for details about the transaction)."
"We've also recently announced several key financing initiatives for the Florence copper project, and we expect
to start construction in the coming months, upon receipt of the final Underground Injection Control permit. Under
the terms of our strategic partnership agreement with Mitsui & Co. (USA), they will make an initial investment of
US$50 million
for a 2.67% copper stream. Mitsui also retains an option to invest an additional
US$50 million
(for a total of
US$100 million
) to convert the copper stream into a 10% equity interest in Florence Copper. We
are very pleased to have completed this transaction which validates the significant value of this project and also
highlights the marketing advantages of low impact mining and US produced copper," continued Mr. McDonald.
Mr. McDonald concluded, "We are very excited about the long-term fundamentals of our North American
copper business. Production growth from
Gibraltar
and continued robust copper pricing is setting Taseko up for
a year of strong financial returns. The important permitting catalyst for our Florence Copper project is on the
near horizon, which we believe will unlock the significant value of that project."
2022 Annual Review
Earnings from mining operations before depletion and amortization* was
$106.2 million
, Adjusted EBITDA*
was
$109.0 million
, and cash flows from operations was
$81.3 million
;
Adjusted net income* was
$1.7 million
(
$0.01
per share) and GAAP Net loss was
$26.0 million
(
$0.09
per
share) for the year;
Total operating costs (C1)* for the year were
US$2.98
per pound produced;
The
Gibraltar
mine produced 97.0 million pounds of copper and 1.1 million pounds of molybdenum in 2022.
Copper recoveries were 79.5% and copper head grades were 0.20%;
Gibraltar
sold 101.3 million pounds of copper for the year (100% basis) which contributed to revenue for
Taseko of
$391.6 million
, Taseko's second highest revenue year after 2021. Average realized copper
prices before hedging gains were
US$3.96
per pound for year, compared to the LME average price of
US$3.99
per pound;
The Company had a cash balance of
$121 million
and has approximately
$190 million
of available liquidity
at
December 31, 2022
, including its undrawn
US$50 million
revolving credit facility;
In
September 2022
, the EPA concluded its 45-day public comment period for the draft Underground
Injection Control ("UIC") permit for Florence Copper. The project received overwhelming support from
business organizations, community leaders and state-wide organizations in written submissions and as
voiced at the public hearing; and
Development costs incurred for Florence Copper were
$101.3 million
in the year and included further
payments for the major processing equipment being delivered for the solvent extraction and
electrowinning ("SX/EW") plant, other pre-construction activities and ongoing site costs.
Fourth Quarter Review
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;
Fourth quarter earnings from mining operations before depletion and amortization* was
$37.7 million
,
Adjusted EBITDA* was
$35.2 million
, and Adjusted net income* was
$7.1 million
(
$0.02
per share);
Gibraltar
produced 26.7 million pounds of copper for the quarter. Head grades were 0.22% and were
similar to the prior quarter. Lower mill throughput and lower than expected grades due to mining dilution,
impacted production in the quarter;
Average mill throughput in the fourth quarter was 79,000 tons per day, as production in December was
negatively impacted by unplanned mill downtime arising from a sitewide power outage caused by an
extreme cold weather event;
Copper recoveries were 83.4% for the quarter in line with expectations and a significant improvement over
the prior quarters in 2022;
Total site costs* in the fourth quarter was
$5.6 million
higher than the average for the last nine months due
to higher diesel costs and timing of equipment repairs and maintenance;
Gibraltar
sold 25.5 million pounds of copper in the quarter (100% basis) at an average realized copper
price of
US$3.66
per pound;
GAAP net loss was
$2.3 million
(
$0.01
loss per share) and reflected an unrealized loss on derivatives of
$20.1 million
due to the recovery in copper prices, and net of a foreign exchange gain of
$4.6 million
due to
a strengthening Canadian dollar;
The Company has copper collar contracts in place to protect a minimum copper price of
US$3.75
per
pound until the end of
December 2023
for the majority of the Company's needs. The Company also has
24 million litres of fuel call options in place to provide a ceiling cost for its share of diesel over the same
period;
In
December 2022
,
Gibraltar
entered into an equipment loan refinancing with the Company's share of net
proceeds being
$25.7 million
. The Company also secured a commitment for
US$25 million
from Banc of
America Leasing & Capital, LLC to fund costs associated with the SX/EW plant for the Florence Copper
commercial production facility;
In
February 2023
, the Company entered into an agreement to extend the maturity date of the undrawn
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
by
US$30 million
, for a total of
US$80 million
, subject to credit approval and other conditions; and
The standstill agreement between the Tŝilhqot'in Nation and Taseko was most recently extended for a
fourth one-year term in
December 2022
, with the goal of providing time and opportunity for the Tŝilhqot'in
Nation and Taseko to negotiate a final resolution. The dialogue process has made tangible progress in the
past 12 months but is not complete. In agreeing to extend the standstill through 2023, the Tŝilhqot'in Nation
and Taseko acknowledge the constructive nature of discussions to date, and the future opportunity to
conclude a long-term and mutually acceptable resolution of the conflict that also makes an important
contribution to the goals of reconciliation in
Canada
.
*Non-GAAP performance measure. See end of news release.
HIGHLIGHTS
Operating Data (Gibraltar - 100% basis)
Three months ended
December 31,
Year ended
December 31,
2022
2021
Change
2022
2021
Change
Tons mined (millions)
22.9
23.3
(0.4)
88.7
105.4
(16.7)
Tons milled (millions)
7.3
7.4
(0.1)
30.3
29.2
1.1
Production (million pounds Cu)
26.7
28.8
(2.1)
97.0
112.3
(15.3)
Sales (million pounds Cu)
25.5
23.8
1.7
101.3
104.9
(3.6)
Financial Data
Three months ended
December 31,
Year ended
December 31,
(Cdn$ in thousands, except for per share amounts)
2022
2021
Change
2022
2021
Change
Revenues
100,618
102,972
(2,354)
391,609
433,278
(41,669)
Earnings from mining operations before depletion and amortization
*
37,653
61,916
(24,263)
106,217
230,392
(124,175)
Cash flows (used for) provided by operations
(946)
37,231
(38,177)
81,266
174,769
(93,503)
Adjusted EBITDA
*
35,181
52,988
(17,807)
109,035
200,733
(91,698)
Adjusted net income
*
7,146
13,312
(6,166)
1,723
44,745
(43,022)
Per share - basic ("Adjusted EPS")
*
0.02
0.05
(0.03)
0.01
0.16
(0.15)
Net income (loss) (GAAP)
(2,275)
11,762
(14,037)
(25,971)
36,472
(62,443)
Per share - basic ("EPS")
(0.01)
0.04
(0.05)
(0.09)
0.13
(0.22)
*Non-GAAP performance measure. See end of news release.
REVIEW OF OPERATIONS
Gibraltar
mine (75% Owned)
Operating data (100% basis)
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
YE
2022
YE
2021
Tons mined (millions)
22.9
23.2
22.3
20.3
23.3
88.7
105.4
Tons milled (millions)
7.3
8.2
7.7
7.0
7.4
30.3
29.2
Strip ratio
1.1
1.5
2.8
2.6
2.2
1.8
2.5
Site operating cost per ton milled (Cdn$)*
$13.88
$11.33
$11.13
$11.33
$9.94
$11.89
$9.21
Copper concentrate
Head grade (%)
0.22
0.22
0.17
0.19
0.24
0.20
0.23
Copper recovery (%)
83.4
77.1
77.3
80.2
80.4
79.5
82.4
Production (million pounds Cu)
26.7
28.3
20.7
21.4
28.8
97.0
112.3
Sales (million pounds Cu)
25.5
26.7
21.7
27.4
23.8
101.3
104.9
Inventory (million pounds Cu)
5.4
4.2
2.7
4.0
9.9
5.4
9.9
Molybdenum concentrate
Production (thousand pounds Mo)
359
324
199
236
450
1,118
1,954
Sales (thousand pounds Mo)
402
289
210
229
491
1,131
2,000
Per unit data (US$ per pound produced)
*
Site operating costs
*
$2.79
$2.52
$3.25
$2.95
$2.02
$2.85
$1.91
By-product credits
*
(0.40)
(0.15)
(0.15)
(0.18)
(0.30)
(0.23)
(0.27)
Site operating costs, net of by-product credits
*
$2.39
$2.37
$3.10
$2.77
$1.72
$2.62
$1.64
Off-property costs
0.36
0.35
0.37
0.36
0.22
0.36
0.26
Total operating costs (C1)
*
$2.75
$2.72
$3.47
$3.13
$1.94
$2.98
$1.90
Full Year Results
Gibraltar
produced 97.0 million pounds of copper for the year compared to 112.3 million pounds in 2021. Head
grades for the year averaged 0.20% copper, compared to 0.23% in 2021. The copper head grades were
impacted by higher than expected mining dilution. Copper recoveries for 2022 were 79.5%, compared to 82.4%
in 2021.
A total of 88.7 million tons were mined in the year compared to 105.4 million tons mined in the prior year
period. The strip ratio of 1.8 was lower than the prior year as mining operations were focused in the
Gibraltar
pit in 2022 which has a lower strip ratio than the Pollyanna pit.
Total site costs* at
Gibraltar
of
$301.8 million
(which includes capitalized stripping of
$32.0 million
) for Taseko's
75% share were
$40.0 million
higher than 2021, primarily due to higher diesel prices (55% higher than 2021)
and increased diesel volume consumed (21% higher than 2021) due to the longer hauls and higher truck hours
and with grinding media and other input costs also increasing due to inflationary pressures.
*Non-GAAP performance measure. See end of news release.
REVIEW OF OPERATIONS – CONTINUED
Molybdenum production was 1.1 million pounds in the year compared to 2.0 million pounds in the prior year.
Molybdenum prices strengthened in 2022 with an average molybdenum price of
US$18.73
per pound, an
increase of 18% compared to the 2021 average price of
US$15.94
per pound. By-product credits per pound of
copper produced was
US$0.23
in the year compared to
US$0.27
in the prior year. The higher molybdenum
price and favorable provisional price adjustments at year end were offset by lower molybdenum sales in 2022
compared to the prior year.
Off-property costs per pound produced* were US$
0.36
for the year, which is
US$0.10
higher than the prior
year. In 2021 the Company benefited from lower benchmark treatment and refining charges ("TCRC") and
realized lower TCRCs for
spot tenders due to tight copper market conditions last year. Ocean freight costs
also increased in 2022 as the Company entered into a new contract at a higher rate earlier in the year. Also
contributing to the increased off-property costs per pound produced in 2022 is the fact that sales of copper
exceeded production by 4.3 million pounds.
Total operating costs per pound produced (C1)* were
US$2.98
for the year, compared to
US$1.90
in the prior
year as shown in the
bridge graph below
:
Total Operating Costs (C1)* (US$ per pound) (CNW Group/Taseko Mines Limited)
Fourth Quarter Results
Gibraltar
produced 26.7 million pounds of copper for the quarter, a 6% decrease over the third quarter.
Copper production in December was impacted by unplanned mill downtime, including a sitewide power outage
late in the month.
Although the power outage was only 24 hours in duration, the severe cold temperatures of -35° Celsius (-31°
Fahrenheit) immediately froze a number of essential systems in the mills. This extreme weather delayed the
restart of milling operations for several days followed by a gradual return to full capacity by the end of
December. Mill throughput in October and November averaged above design capacity at 88,000 tons per day,
but mill throughput averaged only 63,000 tons per day in December.
Head grades were in line with the prior quarter and management continues to work on reducing the mining
dilution being experienced in the
Gibraltar
pit. Copper recoveries in the fourth quarter were 83%, an
improvement over the prior quarters in 2022 due to improving ore quality as mining advances deeper into the
Gibraltar
pit.
*Non-GAAP performance measure. See end of news release.
REVIEW OF OPERATIONS – CONTINUED
A total of 22.9 million tons were mined in the fourth quarter. The strip ratio of 1.1 was lower than prior quarter
and included some initial stripping activity in the Connector pit. The ore stockpiles increased by 3.8 million tons
in the fourth quarter.
Total site costs* at
Gibraltar
of
$79.7 million
(which includes capitalized stripping of
$3.9 million
) for Taseko's
75% share were
$5.6 million
higher than the average of the first three quarters of 2022 due to higher diesel
costs, timing of repairs and maintenance and year-end wage related costs. Site operating cost per ton milled*
was
$13.88
was higher than the previous quarters in 2022 due to the higher site costs and lower mill
throughput.
Molybdenum production was 359 thousand pounds in the fourth quarter. At an average molybdenum price of
US$21.39
per pound and the impact of favorable provisional price adjustments of
$3.9 million
for Taseko's 75%
share, molybdenum generated a by-product credit per pound of copper produced of
US$0.40
in the fourth
quarter.
Off-property costs per pound produced* were
US$0.36
for the fourth quarter reflecting higher ocean freight
costs (including bunker fuel) and increased treatment and refining charges (TCRC) compared to the same
quarter in the prior year.
Total operating costs per pound produced (C1)* were
US$2.75
for the quarter and was in line with the previous
quarter.
GIBRALTAR
OUTLOOK
Gibraltar
is expected to produce 115 million pounds of copper (+/-5%) in 2023 on a 100% basis. The
Gibraltar
pit will 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.
Annual mill throughput is expected to exceed design capacity in 2023 due to the softer ore in
Gibraltar
pit.
Stripping activities are underway in the new Connector pit. While the strip ratio is expected to be in line with
the LOM average, the allocation of costs to capitalized stripping in 2023 will be higher than in 2022. The
primary crusher for mill 1 which overlays the Connector zone is scheduled to be moved to its new location in the
third quarter of this year.
Strong metal prices combined with our copper hedge protection continues to provide tailwinds for robust
financial performance and operating margins at the
Gibraltar
mine over the coming year. Copper prices in 2022
averaged
US$3.99
per pound and have started the current year above these levels. Molybdenum prices are
currently
US$36.95
per pound, 97% 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 72 million pounds of copper until
December 31
, 2023. The Company has also executed
price caps for its share of diesel purchases. Improving production combined with this copper hedge and diesel
price protection program should continue to provide the foundation for stable financial performance and
operating margins at the
Gibraltar
mine in 2023.
*Non-GAAP performance measure. See end of news release.
FLORENCE COPPER
The Company is awaiting the issuance of the final Underground Injection Control permit ("UIC") 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 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
$101.3 million
of capital expenditures at the Florence project in 2022 funded from available cash.
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.
LONG-TERM GROWTH STRATEGY – CONTINUED
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 Teztan 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 Friday, February 24, 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/3HbbVpt
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 416-764-8688 in Canada, 888-390-0546 in the United States, 08006522435 in the United Kingdom, or online at tasekomines.com/investors/events using
the entry code 613140#.
The conference call will be archived for later playback until March 9, 2023 and can be accessed by dialing 416-764-8677 in Toronto, 888-390-0541 toll free in North America, or online at
tasekomines.com/investors/events and using the entry code 613140#.
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
2022
Q4
2022
Q3
2022
Q2
2022
Q1
2022
YE
Cost of sales
73,112
84,204
90,992
89,066
337,374
Less:
Depletion and amortization
(10,147)
(13,060)
(15,269)
(13,506)
(51,982)
Net change in inventories of finished goods
1,462
2,042
(3,653)
(7,577)
(7,726)
Net change in inventories of ore stockpiles
18,050
3,050
(3,463)
(3,009)
14,628
Transportation costs
(6,671)
(6,316)
(4,370)
(5,115)
(22,472)
Site operating costs
75,806
69,920
64,237
59,859
269,822
Less by-product credits:
Molybdenum, net of treatment costs
(11,022)
(4,122)
(3,023)
(3,831)
(21,999)
Silver, excluding amortization of deferred revenue
263
25
36
202
526
Site operating costs, net of by-product credits
65,047
65,823
61,250
56,230
248,349
Total copper produced (thousand pounds)
20,020
21,238
15,497
16,024
72,778
Total costs per pound produced
3.25
3.10
3.95
3.51
3.41
Average exchange rate for the period (CAD/US$)
1.36
1.31
1.28
1.27
1.30
Site operating costs, net of by-product credits
(US$ per pound)
2.39
2.37
3.10
2.77
2.62
Site operating costs, net of by-product credits
65,047
65,823
61,250
56,230
248,349
Add off-property costs:
Treatment and refining costs
3,104
3,302
2,948
2,133
11,486
Transportation costs
6,671
6,316
4,370
5,115
22,472
Total operating costs
74,822
75,441
68,568
63,478
282,307
Total operating costs (C1) (US$ per pound)
2.75
2.72
3.47
3.13
2.98
NON-GAAP PERFORMANCE MEASURES – CONTINUED
(Cdn$ in thousands, unless otherwise indicated) –
75% basis
2021
Q4
2021
Q3
2021
Q2
2021
Q1
2021
YE
Cost of sales
57,258
65,893
74,056
72,266
269,473
Less:
Depletion and amortization
(16,202)
(17,011)
(17,536)
(15,838)
(66,587)
Net change in inventories of finished goods
13,497
762
(4,723)
2,259
11,795
Net change in inventories of ore stockpiles
4,804
6,291
2,259
(8,226)
5,128
Transportation costs
(4,436)
(5,801)
(4,303)
(3,305)
(17,845)
Site operating costs
54,921
50,134
49,753
47,156
201,964
Less by-product credits:
Molybdenum, net of treatment costs
(7,755)
(8,574)
(6,138)
(5,604)
(28,071)
Silver, excluding amortization of deferred revenue
(330)
300
64
(238)
(204)
Site operating costs, net of by-product credits
46,836
41,860
43,679
41,314
173,689
Total copper produced (thousand pounds)
21,590
25,891
20,082
16,684
84,247
Total costs per pound produced
2.17
1.62
2.18
2.48
2.06
Average exchange rate for the period (CAD/USD)
1.26
1.26
1.23
1.27
1.25
Site operating costs, net of by-product credits
(US$ per pound)
1.72
1.28
1.77
1.96
1.64
Site operating costs, net of by-product credits
46,836
41,860
43,679
41,314
173,689
Add off-property costs:
Treatment and refining costs
1,480
3,643
1,879
2,414
9,416
Transportation costs
4,436
5,801
4,303
3,305
17,845
Total operating costs
52,752
51,304
49,861
47,033
200,950
Total operating costs (C1) (US$ per pound)
1.94
1.57
2.02
2.23
1.90
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
2022
Q4
2022
Q3
2022
Q2
2022
Q1
2022
YE
Site operating costs
75,806
69,920
64,237
59,859
269,822
Add:
Capitalized stripping costs
3,866
1,121
11,887
15,142
32,016
Total site costs
79,672
71,041
76,124
75,001
301,838
NON-GAAP PERFORMANCE MEASURES – CONTINUED
(Cdn$ in thousands, unless otherwise indicated) –
75% basis
2021
Q4
2021
Q3
2021
Q2
2021
Q1
2021
YE
Site operating costs
54,921
50,134
49,753
47,156
201,964
Add:
Capitalized stripping costs
12,737
10,882
14,794
21,452
59,865
Total site costs
67,658
61,016
64,547
68,608
261,829
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 gains/losses;
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)
2022
Q4
2022
Q3
2022
Q2
2022
Q1
2022
YE
Net income (loss)
(2,275)
(23,517)
(5,274)
5,095
(25,971)
Unrealized foreign exchange (gain) loss
(5,279)
28,083
11,621
(4,398)
30,027
Unrealized (gain) loss on derivatives
20,137
(72)
(30,747)
7,486
(3,196)
Estimated tax effect of adjustments
(5,437)
19
8,302
(2,021)
863
Adjusted net income (loss)
7,146
4,513
(16,098)
6,162
1,723
Adjusted EPS
0.02
0.02
(0.06)
0.02
0.01
(Cdn$ in thousands, except per share amounts)
2021
Q4
2021
Q3
2021
Q2
2021
Q1
2021
YE
Net income (loss)
11,762
22,485
13,442
(11,217)
36,472
Unrealized foreign exchange (gain) loss
(1,817)
9,511
(3,764)
8,798
12,728
Realized foreign exchange gain on settlement of long-
term debt
-
-
-
(13,000)
(13,000)
Loss on settlement of long-term debt
-
-
-
5,798
5,798
Call premium on settlement of long-term debt
-
-
-
6,941
6,941
Unrealized (gain) loss on derivatives
4,612
(6,817)
370
802
(1,033)
Estimated tax effect of adjustments
(1,245)
1,841
(100)
(3,657)
(3,161)
Adjusted net income (loss)
13,312
27,020
9,948
(5,535)
44,745
Adjusted EPS
0.05
0.10
0.04
(0.02)
0.16
NON-GAAP PERFORMANCE MEASURES – CONTINUED
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 derivatives;
Loss on settlement of long-term debt (included in finance expenses) and call premium;
Realized foreign exchange gains on settlement of long-term debt; and
Amortization of share-based compensation expense.
(Cdn$ in thousands)
2022
Q4
2022
Q3
2022
Q2
2022
Q1
2022
YE
Net income (loss)
(2,275)
(23,517)
(5,274)
5,095
(25,971)
Add: