Taseko Reports Improved Production and $34 Million of Adjusted EBITDA* FOR Third Quarter 2022
TASEKO REPORTS IMPROVED PRODUCTION AND $34 MILLION OF
ADJUSTED EBITDA* FOR THIRD QUARTER 2022
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
,
Nov. 3, 2022
/CNW/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or the "Company") reports
Adjusted EBITDA* of
$34.0 million
and Adjusted net income* of
$4.5 million
, or
$0.02
per share for the third quarter 2022. Cash flows provided by
operations was
$12.1 million
and Earnings from mining operations before depletion* was
$18.6 million
.
Stuart McDonald
, President and CEO of Taseko, stated, "Strong financial performance in the third quarter was driven by a nearly 40% increase in
copper production at
Gibraltar
. Head grades and copper production have continued to improve as mining advances deeper into the
Gibraltar
pit. Higher
throughput due to the softer ore in the new pit also benefited production with average daily mill throughput of 89,400 tons in the third quarter. This was
the highest quarterly mill throughput at
Gibraltar
since the expansion ten years ago, and we continue to see the potential for further increases. Combined
with higher grades, production in the quarter was 28.3 million pounds of copper and 324 thousand pounds of molybdenum. For the fourth quarter, we
anticipate approximately a 10% increase in production, and more stable production levels in the coming quarters."
"Our unit operating costs declined by 22% quarter-over-quarter, as result of increased production and lower site spending. But operating costs are still
being impacted by diesel prices which are ~55% higher than in 2021. During the third quarter, we purchased diesel call options which will protect the
Company from further diesel price escalation through
June 2023
," added Mr. McDonald.
"The average realized copper price for the period was
US$3.48
per pound and was supported by our pricing and hedging strategy. We realized proceeds
of
$18.6 million
in the quarter from copper put options, and going forward, we have protected a substantial portion of future sales at a minimum price of
US$3.75
per pound through
June 2023
. Given that we expect
Florence
construction to be underway next year, we are looking for a market opportunity to
extend our put position into the second half of 2023," continued Mr. McDonald.
"At our Florence Copper Project, we made important steps towards completion of the review process for the Underground Injection Control ("UIC")
permit. The US Environmental Protection Agency ("EPA") issued the draft UIC permit in August and the subsequent public comment period and public
hearing confirmed overwhelming support for the project from residents of the town of
Florence
and surrounding areas. We're confident that all submitted
comments will be fully addressed by the EPA, and we look forward to receiving the final UIC permit and getting started on construction of the commercial
production facility. Deliveries of major components for the SX-EW plant and other long-lead items continued through the third quarter and should be
complete by year-end." continued Mr. McDonald.
Third Quarter Review
Third quarter Adjusted EBITDA* was
$34.0 million
, earnings from mining operations before depletion and amortization* was
$18.6 million
, and
Adjusted net income* was
$4.5 million
(
$0.02
per share);
On
September 29, 2022
, the EPA concluded its 45-day public comment period for the draft Underground Injection Control 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;
Gibraltar
produced 28.3 million pounds of copper for the quarter. Head grades improved over the first half of the year to 0.22% but were still
impacted by higher than normal mining dilution;
Mill throughput exceeded nameplate capacity at an average rate of 89,400 tons per day in the quarter due to the softer ore from the
Gibraltar
pit.
Copper recoveries were 77.1% for the quarter and were primarily impacted by the lower head grade;
Total site costs* in the third quarter decreased from the previous quarters of 2022 but remained elevated compared to 2021 primarily due to higher
diesel prices;
Gibraltar
sold 26.7 million pounds of copper in the quarter (100% basis) at an average realized copper price of
US$3.48
per pound;
GAAP net loss was
$23.5 million
(
$0.08
loss per share) and reflected unrealized foreign exchange losses of
$28.1 million
on the translation of the
Company's US dollar denominated debt;
Cash flow from operations was
$12.1 million
which did not include
$18.6 million
in cash proceeds realized from copper put option contracts in the
quarter;
The Company has copper collar contracts in place to protect a minimum copper price of
US$3.75
per pound until mid-2023. The Company also has
18 million litres of fuel call options in place to provide a ceiling cost for its share of diesel over the same period;
Development costs incurred for Florence Copper were
$27.3 million
in the quarter and included further payments for the major processing equipment
being delivered for the SX/EW plant, other pre-construction activities and ongoing site costs; and
The Company had a cash balance of
$142 million
and has approximately
$210 million
of available liquidity at
September 30, 2022
, including its
undrawn
US$50 million
revolving credit facility.
*Non-GAAP performance measure. See end of news release
HIGHLIGHTS
Operating Data (Gibraltar - 100% basis)
Three months ended
September 30,
Nine months ended
September 30,
2022
2021
Change
2022
2021
Change
Tons mined (millions)
23.2
25.2
(2.0)
65.7
82.1
(16.4)
Tons milled (millions)
8.2
7.4
0.8
23.0
21.9
1.1
Production (million pounds Cu)
28.3
34.5
(6.2)
70.3
83.5
(13.2)
Sales (million pounds Cu)
26.7
32.4
(5.7)
75.8
81.1
(5.3)
Financial Data
Three months ended
September 30,
Nine months ended
September 30,
(Cdn$ in thousands, except for per share amounts)
2022
2021
Change
2022
2021
Change
Revenues
89,714
132,563
(42,849)
290,991
330,306
(39,315)
Earnings from mining operations before depletion and amortization
*
18,570
83,681
(65,111)
68,564
168,476
(99,912)
Cash flows provided by operations
12,115
68,319
(56,204)
82,212
137,538
(55,326)
Adjusted EBITDA
*
34,031
76,291
(42,260)
73,854
147,745
(73,891)
Adjusted net income (loss)
*
4,513
27,020
(22,507)
(5,423)
31,433
(36,856)
Per share - basic ("adjusted EPS")
*
0.02
0.10
(0.08)
(0.02)
0.11
(0.13)
Net income (loss) (GAAP)
(23,517)
22,485
(46,002)
(23,696)
24,710
(48,406)
*Non-GAAP performance measure. See end of news release
REVIEW OF OPERATIONS
Gibraltar
mine (75% Owned)
Operating data (100% basis)
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Tons mined (millions)
23.2
22.3
20.3
23.3
25.2
Tons milled (millions)
8.2
7.7
7.0
7.4
7.4
Strip ratio
1.5
2.8
2.6
2.2
1.3
Site operating cost per ton milled (Cdn$)*
$11.33
$11.13
$11.33
$9.94
$8.99
Copper concentrate
Head grade (%)
0.22
0.17
0.19
0.24
0.28
Copper recovery (%)
77.1
77.3
80.2
80.4
84.2
Production (million pounds Cu)
28.3
20.7
21.4
28.8
34.5
Sales (million pounds Cu)
26.7
21.7
27.4
23.8
32.4
Inventory (million pounds Cu)
4.2
2.7
4.0
9.9
4.9
Molybdenum concentrate
Production (thousand pounds Mo)
324
199
236
450
571
Sales (thousand pounds Mo)
289
210
229
491
502
Per unit data (US$ per pound produced)
*
Site operating costs
*
$2.52
$3.25
$2.95
$2.02
$1.53
By-product credits
*
(0.15)
(0.15)
(0.18)
(0.30)
(0.25)
Site operating costs, net of by-product credits
*
$2.37
$3.10
$2.77
$1.72
$1.28
Off-property costs
0.35
0.37
0.36
0.22
0.29
Total operating costs (C1)
*
$2.72
$3.47
$3.13
$1.94
$1.57
Third Quarter Review
Gibraltar
produced 28.3 million pounds of copper for the quarter, a 37% increase over the second quarter. Head grades improved over the first half of
the year to 0.22% but still were impacted by higher than normal mining dilution. Grades are expected to continue improving into the fourth quarter as
mining advances deeper into the
Gibraltar
pit, and a number of initiatives are underway to reduce the above normal mining dilution being experienced in
this pit.
Mill throughput averaged 89,400 tons per day exceeding the name plate capacity by 5% and the best quarterly average for
Gibraltar
. Copper recoveries
of 77% were primarily impacted by the lower grade and are also expected to improve as consistency and quality of the
Gibraltar
pit ore improves at
depth.
A total of 23.2 million tons were mined in the third quarter as mining operations were focused in the
Gibraltar
pit. The strip ratio of 1.5 was lower than
prior quarter as stripping activity in Pollyanna was minimal and ore stockpiles increased by 1.0 million tons in the third quarter.
*Non-GAAP performance measure. See end of news release
REVIEW OF OPERATIONS – CONTINUED
Total site costs* at
Gibraltar
of
$71.0 million
(which includes capitalized stripping of
$1.1 million
) for Taseko's 75% share were
$10.0 million
higher than
the third quarter of 2021 due to higher diesel prices (56% higher than 2021) and with grinding media and other input costs also increasing.
Molybdenum production was 324 thousand pounds in the third quarter due to lower grades. At an average molybdenum price of
US$16.10
per pound,
molybdenum generated a by-product credit per pound of copper produced of
US$0.15
in the third quarter.
Off-property costs per pound produced* were
US$0.35
for the third quarter reflecting higher ocean freight costs (including bunkers) 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$2.72
for the quarter and were
US$1.15
per pound higher than the third quarter last year as
shown in the bridge graph below:
Total Operating Costs (C1)* (US$ per pound) (CNW Group/Taseko Mines Limited)
Of the
US$1.15
variance in C1 costs in the third quarter of 2022 compared to the prior year quarter,
US$0.46
was due to decreased copper production,
US$0.35
was due to less mining and other costs being capitalized,
US$0.11
was due to lower molybdenum production,
US$0.26
was due to inflation
arising from increased prices for diesel, grinding media, explosives and other site costs,
US$0.06
was due to higher treatment and refining charges, and
partially offset by a weakening Canadian dollar impact of
US$0.09
.
GIBRALTAR
OUTLOOK
Ore from the
Gibraltar
pit will be the primary source of mill feed for the fourth quarter and for 2023. Copper production in the fourth quarter is expected
to improve by approximately 10% over the third quarter and continue at those higher production rates into 2023 as mining progresses deeper into the
Gibraltar
pit. Stripping activities for the new Connector pit will also commence in 2023. 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 2023.
*Non-GAAP performance measure. See end of news release
GIBRALTAR
OUTLOOK - CONTINUED
The Company currently has copper price collar contracts in place that secure a minimum copper price of
US$3.75
per pound for a substantial portion of
its attributable production until
June 30, 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 over the coming quarters.
FLORENCE
COPPER
Once in commercial production, Florence Copper is expected to have the lowest energy and greenhouse gas-intensity ("GHG") of any copper producer in
North America
, and will contribute to reducing
the United States'
reliance on foreign producers for a metal considered to be foundational for the transition
to a low-carbon economy. It is a low-cost copper project with an annual production capacity of 85 million pounds of copper over a 21-year mine life. With
the expected C1* operating cost of
US$1.10
per pound, Florence Copper will be in the lowest quartile of the global copper cost curve and will have one
of the smallest environmental footprints of any copper mine in the world with carbon emissions, water and energy consumption all dramatically lower than
a conventional mine.
The Company has successfully operated a Production Test Facility ("PTF") since 2018 at
Florence
to demonstrate that the in-situ copper recovery
("ISCR") process can produce high quality cathode while operating within permit conditions.
The next phase of Florence Copper will be the construction and operation of the commercial ISCR facility with an estimated capital cost of
US$230 million
(including reclamation bonding and working capital) based on the Company's published 2017 NI 43-101 technical report. At a conservative copper price of
US$3.00
per pound, Florence Copper is expected to generate an after-tax internal rate of return of 37%, an after-tax net present value of
US$680 million
at a 7.5% discount rate, and an after-tax payback period of 2.5 years.
In December 2020, the Company received the Aquifer Protection Permit ("APP") from the Arizona Department of Environmental Quality ("ADEQ"). During
the APP process, Florence Copper received strong support from local community members, business owners and elected officials.
The other required permit is the Underground Injection Control permit ("UIC") from the U.S. Environmental Protection Agency ("EPA"), which is the final
permitting step required prior to construction of the commercial ISCR facility. On
September 29, 2022
, the EPA concluded its public comment period on
the draft UIC it issued following a virtual public hearing that was held on
September 15, 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. Over
98% of written comments to the EPA were supportive of the project and supplement the unanimous public support voiced at the EPA's public hearing.
Taseko has reviewed all of the submitted comments and is confident they will be fully addressed by the EPA during their review, prior to issuing the final
UIC permit.
*Non-GAAP performance measure. See end of news release
FLORENCE
COPPER - CONTINUED
Detailed engineering and design for the commercial production facility was substantially completed in 2021 and procurement activities are well advanced
with the Company having awarded and procured the key contract for the major processing equipment associated with the solvent extraction and
electrowinning ("SX/EW") plant. The Company has incurred
$79.6 million
of costs for
Florence
in the nine month period ended
September 30, 2022
and
most of ordered SX/EW plant equipment is expected to be on site by the end of year. Florence Copper also has outstanding purchase commitments of
$16.4 million
as at
September 30, 2022
. Deploying this strategic capital and awarding key contracts has assisted with protecting the project execution
plan including against supply chain challenges, mitigated inflation risk and should ensure a smooth transition into construction once the final UIC permit is
received.
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.
New Prosperity Gold-Copper Project
In
December 2019
, the Tŝilhqot'in Nation, as represented by the Tŝilhqot'in National Government, and Taseko entered into a confidential dialogue, with
the involvement of the Province of
British Columbia
, to try to obtain a long-term resolution to the conflict regarding Taseko's proposed gold-copper mine
currently known as New Prosperity, acknowledging Taseko's commercial interests and the Tŝilhqot'in Nation's opposition to the project.
*Non-GAAP performance measure. See end of news release
LONG-TERM GROWTH STRATEGY - CONTINUED
The dialogue was supported by the parties' agreement on
December 7, 2019
to a one-year standstill on certain outstanding litigation and regulatory
matters that relate to Taseko's tenures and the area in the vicinity of Teẑtan Biny (Fish Lake). The standstill was extended on
December 4, 2020
, to
continue what was a constructive dialogue that had been delayed by the COVID-19 pandemic. The dialogue is not complete but it remains constructive,
and in
December 2021
, the parties agreed to extend the standstill for a further year so that they and the Province of
British Columbia
can continue to
pursue a long-term and mutually acceptable resolution of the conflict.
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 will host a telephone conference call and live webcast on Friday, November 4, 2022 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.
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
.
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
Q3
2022
Q2
2022
Q1
2021
Q4
2021
Q3
Cost of sales
84,204
90,992
89,066
57,258
65,893
Less:
Depletion and amortization
(13,060)
(15,269)
(13,506)
(16,202)
(17,011)
Net change in inventories of finished goods
2,042
(3,653)
(7,577)
13,497
762
Net change in inventories of ore stockpiles
3,050
(3,463)
(3,009)
4,804
6,291
Transportation costs
(6,316)
(4,370)
(5,115)
(4,436)
(5,801)
Site operating costs
69,920
64,237
59,859
54,921
50,134
Less by-product credits:
Molybdenum, net of treatment costs
(4,122)
(3,023)
(3,831)
(7,755)
(8,574)
Silver, excluding amortization of deferred revenue
25
36
202
(330)
300
Site operating costs, net of by-product credits
65,823
61,250
56,230
46,836
41,860
Total copper produced (thousand pounds)
21,238
15,497
16,024
21,590
25,891
Total costs per pound produced
3.10
3.95
3.51
2.17
1.62
Average exchange rate for the period (CAD/USD)
1.31
1.28
1.27
1.26
1.26
Site operating costs, net of by-product credits
(US$ per pound)
2.37
3.10
2.77
1.72
1.28
Site operating costs, net of by-product credits
65,823
61,250
56,230
46,836
41,860
Add off-property costs:
Treatment and refining costs
3,302
2,948
2,133
1,480
3,643
Transportation costs
6,316
4,370
5,115
4,436
5,801
Total operating costs
75,441
68,568
63,478
52,752
51,304
Total operating costs (C1) (US$ per pound)
2.72
3.47
3.13
1.94
1.57
NON-GAAP PERFORMANCE MEASURES - CONTINUED
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
Q3
2022
Q2
2022
Q1
2021
Q4
2021
Q3
Site operating costs
69,920
64,237
59,859
54,921
50,134
Add:
Capitalized stripping costs
1,121
11,887
15,142
12,737
10,882
Total site costs
71,041
76,124
75,001
67,658
61,016
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
Q3
2022
Q2
2022
Q1
2021
Q4
Net income (loss)
(23,517)
(5,274)
5,095
11,762
Unrealized foreign exchange (gain) loss
28,083
11,621
(4,398)
(1,817)
Unrealized (gain) loss on derivatives
(72)
(30,747)
7,486
4,612
Estimated tax effect of adjustments
19
8,302
(2,021)
(1,245)
Adjusted net income (loss)
4,513
(16,098)
6,162
13,312
Adjusted EPS
0.02
(0.06)
0.02
0.05
(Cdn$ in thousands, except per share amounts)
2021
Q3
2021
Q2
2021
Q1
2020
Q4
Net income (loss)
22,485
13,442
(11,217)
5,694
Unrealized foreign exchange (gain) loss
9,511
(3,764)
8,798
(13,595)
Realized foreign exchange gain on settlement of long-term debt
-
-
(13,000)
-
Loss on settlement of long-term debt
-
-
5,798
-
Call premium on settlement of long-term debt
-
-
6,941
-
Unrealized (gain) loss on derivatives
(6,817)
370
802
586
Estimated tax effect of adjustments
1,841
(100)
(3,656)
(158)
Adjusted net income (loss)
27,020
9,948
(5,534)
(7,473)
Adjusted EPS
0.10
0.04
(0.02)
(0.03)
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
Q3
2022
Q2
2022
Q1
2021
Q4
Net income (loss)
(23,517)
(5,274)
5,095
11,762
Add:
Depletion and amortization
13,060
15,269
13,506
16,202
Finance expense
12,481
12,236
12,155
12,072
Finance income
(650)
(282)
(166)
(218)
Income tax expense
3,500
922
1,188
9,300
Unrealized foreign exchange (gain) loss
28,083
11,621
(4,398)
(1,817)
Unrealized (gain) loss on derivatives
(72)
(30,747)
7,486
4,612
Amortization of share-based compensation expense (recovery)
1,146
(2,061)
3,273
1,075
Adjusted EBITDA
34,031
1,684
38,139
52,988
(Cdn$ in thousands)
2021
Q3
2021
Q2
2021
Q1
2020
Q4
Net income (loss)
22,485
13,442
(11,217)
5,694
Add:
Depletion and amortization
17,011
17,536
15,838
18,747
Finance expense (includes loss on settlement of long-term debt
and call premium)
11,875
11,649
23,958
10,575
Finance income
(201)
(184)
(75)
(47)
Income tax (recovery) expense
22,310
7,033
(4,302)
(2,724)
Unrealized foreign exchange (gain) loss
9,511
(3,764)
8,798
(13,595)
Realized foreign exchange gain on settlement of long-term debt
-
-
(13,000)
-
Unrealized (gain) loss on derivatives
(6,817)
370
802
586
Amortization of share-based compensation expense
117
1,650
2,920
1,242
Adjusted EBITDA
76,291
47,732
23,722
20,478
NON-GAAP PERFORMANCE MEASURES - CONTINUED
Earnings (loss) 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
September 30,
Nine months ended
September 30,
(Cdn$ in thousands)
2022
2021
2022
2021
Earnings from mining operations
5,510
66,670
26,729
118,091
Add:
Depletion and amortization
13,060
17,011
41,835
50,385
Earnings from mining operations before depletion and amortization
18,570
83,681
68,564
168,476
Site operating costs per ton milled
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 Company's site operations on a tons milled basis.
(Cdn$ in thousands, except per ton milled amounts)
2022
Q3
2022
Q2
2022
Q1
2021
Q4
2021
Q3
Site operating costs (included in cost of sales)
69,920
64,237
59,859
54,921
50,134
Tons milled (thousands) (75% basis)
6,172
5,774
5,285
5,523
5,576
Site operating costs per ton milled
$11.33
$11.13
$11.33
$9.94
$8.99
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 18:18e 03-NOV-22