TKO.TO · 2024-11-06 12:00:00

Taseko Reports Third Quarter 2024 Operational Performance and $48 Million of Adjusted EBITDA

Corporate Updates

Taseko Reports Third Quarter 2024 Operational Performance and $48 Million

of Adjusted EBITDA

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.sedarplus.com . Except where otherwise noted, all currency

amounts are stated in Canadian dollars. In March 2024 Taseko acquired the remaining 12.5% interest and now owns 100%

of the Gibraltar Mine, 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, British Columbia, Nov. 06, 2024 -- Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO)

("Taseko" or the "Company") reports third quarter 2024 Adjusted EBITDA* of $48 million and Earnings from mining operations

before depletion, amortization and non-recurring items* of $55 million. Revenues for the third quarter were $156 million from the

sale of 26 million pounds of copper and 348 thousand pounds of molybdenum. A net loss of $0.2 million ($nil per share) was

recorded for the quarter and adjusted net income* was $8 million ($0.03 per share).

Gibraltar produced 27 million pounds of copper and 421 thousand pounds of molybdenum in the third quarter. Copper grades

were 0.23%, consistent with the prior quarter. Tons milled increased over the second quarter, however mill availability and

throughput was lower than planned due to unscheduled downtime and the completion of the crusher move project and

concurrent maintenance in concentrator #1 in July. Copper recoveries increased modestly to 79%. Molybdenum production

was boosted by a 33% increase in grades, related to ore from the new Connector pit. Total operating costs (C1)* for the

quarter were US$2.92 per pound of copper produced.

Stuart McDonald, President and CEO of Taseko, commented, “The development of the new Connector pit advanced on plan in

the third quarter, with the new pit providing approximately half of the mill feed in the period. Due to the lower than planned mill

availability in the third quarter, we do not expect to recover the production that was lost during the labour strike in June.

Looking ahead to 2025, we expect increased mill throughput and improved ore quality as we move deeper into the Connector

pit. Copper production next year is expected to increase to the 120 to 130 million pound range, and molybdenum production is

also expected to increase. Lower-grade ore stockpiles will be used to supplement mined ore in the first half of the year, so

production will be weighted to the second half of the year.”

Mr. McDonald continued, “Construction at Florence Copper has continued to progress on schedule. We are now in peak

construction with nearly 300 contractors working at site. The SX/EW plant activities have shifted from earth works and

concrete foundation pouring to now erecting structural steel and installation of processing equipment and electrical services.

Development of the wellfield is advancing with four drill rigs now operating and 40 wells completed at the end of October.

Development of the wellfield, which is a critical path item, remains on schedule to be completed in the second quarter of next

year.”

“We expect Florence Copper to become North America’s lowest GHG-intensity primary copper producer, and we’re optimistic

that the project will qualify for the U.S. Department of Energy’s (“DOE”) Qualifying Advanced Energy Project Credit (48C)

Program, which we applied for recently. We expect to hear whether our application was successful in January. Our balance

sheet remains in a strong position, with $209 million of cash on hand and total liquidity of approximately $317 million at the

end of September,” added Mr. McDonald.

“This is a very exciting time for Taseko as we begin to unlock the value of our growth assets. The Florence Copper project

continues to be de-risked and is now just a year away from producing first copper. We’re also preparing to take a big step

forward with our Yellowhead copper project, which will be entering the environmental assessment process in the coming

months. We also plan on issuing an updated feasibility study for the project next year, which will reinforce the significant value

of what could be British Columbia’s next major copper mine,” concluded Mr. McDonald.

Third Quarter Review

• Earnings from mining operations before depletion, amortization and non-recurring items* was $54.5 million and Adjusted

EBITDA* was $47.7 million;

• Third quarter cash flow from operations was $65.0 million, and included $26.3 million for proceeds received on the

insurance claim recorded in the prior quarter;

• Net loss was $0.2 million ($Nil per share) for the quarter and Adjusted net income* was $8.2 million ($0.03 per share);

• Gibraltar produced 27.1 million pounds of copper in the quarter. Average copper head grades were 0.23% and copper

recoveries were 79% for the quarter;

• Although 7.6 million tons of ore was milled in the quarter, mill throughput was impacted by nearly three weeks of

downtime in Concentrator #1 at the beginning of the quarter for the completion of the crusher relocation project,

concurrent mill maintenance, and the ramp back up to full capacity;

• Gibraltar sold 26.3 million pounds of copper in the quarter at an average realized copper price of US$4.23 per pound;

• Total operating costs (C1)* for the quarter were US$2.92 per pound produced. Lower off-property costs are mainly due

to favorably lower treatment and refining (“TCRC”) rates realized during the quarter as new offtake agreements begin to

take effect;

• Construction of the Florence Copper commercial production facility continues to advance on schedule. A total of 34

production wells out of a total of 90 new wells had been completed as of September 30. Earthworks and site

preparation for the plant area and commercial wellfield is estimated to be 75% complete and installation of structural

steel, tanks, and process equipment is underway;

• An application has been made to the U.S. Department of Energy’s Qualifying Advanced Energy Project Credit (48C)

Program for a tax credit of up to US$110 million, based on Florence Copper’s eligibility as a critical materials project.

The Company expects to hear if it has been awarded the tax credit in mid-January 2025;

• On November 6, the Company entered into an amendment for its revolving credit facility, extending the maturity date to

November 2027 from July 2026, and increasing the facility amount to US$110 million from US$80 million. No amounts

are drawn against the revolving credit facility;

• The Company issued 7.8 million shares under its At-the-Market (“ATM”) equity offering in the quarter and received net

proceeds of $23.1 million. Subsequently, the Company issued an additional 4.3 million shares under the ATM and

received net proceeds of $14.2 million; and

• The Company had a cash balance of $209 million as at September 30, 2024.

Highlights

Operating Data (Gibraltar - 100% basis)

Three months ended

September 30,

Nine months ended

September 30,

2024 2023 Change 2024 2023 Change

Tons mined (millions) 23.2 16.5 6.7 64.4 64.0 0.4

Tons milled (millions) 7.6 8.0 (0.4) 21.0 22.4 (1.4)

Production (million pounds Cu) 27.1 35.4 (8.3) 77.0 88.5 (11.5)

Sales (million pounds Cu) 26.3 32.1 (5.8) 80.6 84.8 (4.2)

Financial Data

Three months ended

September 30,

Nine months ended

September 30,

(Cdn$ in thousands, except for per share amounts) 2024 2023 Change 2024 2023 Change

Revenues 155,617 143,835 11,782 440,294 371,278 69,016

Cash flows provided by operations 65,038 26,989 38,049 159,323 88,257 71,066

Net (loss) income (GAAP) (180) 871 (1,051) 7,763 44,650 (36,887)

Per share – basic (“EPS”) - - - 0.03 0.15 (0.12)

Earnings from mining operations before

depletion, amortization and non-recurring

items* 54,516 65,445 (10,929) 184,241 134,248 49,993

Adjusted EBITDA* 47,689 62,695 (15,006) 168,389 120,972 47,417

Adjusted net income* 8,228 19,659 (11,431) 46,459 20,372 26,087

Per share – basic (“adjusted EPS”)* 0.03 0.07 (0.04) 0.16 0.07 0.09

Effective as of March 25, 2024 the Company increased its ownership in Gibraltar from 87.5% to 100%. As a result, the

financial results reported in this MD&A include 100% of Gibraltar income and expenses for the period March 25, 2024 to

September 30, 2024 (87.5% for the period March 16, 2023 to March 24, 2024, and 75% prior to March 15, 2023). For more

information on the Company’s acquisition of Cariboo, please refer to the Financial Statements – Note 3.

The Company finalized the accounting for the acquisition of its initial 50% interest in Cariboo from Sojitz and the related 12.5%

interest in Gibraltar in the fourth quarter of 2023. In accordance with the accounting standards for business combinations, the

comparable financial statements as of September 30, 2023 and for the three and nine months then ended have been revised to

reflect the changes in finalizing the consideration paid and the allocation of the purchase price to the assets and liabilities

acquired.

Review of Operations

Gibraltar mine

Operating data (100% basis) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023

Tons mined (millions) 23.2 18.4 22.8 24.1 16.5

Tons milled (millions) 7.6 5.7 7.7 7.6 8.0

Strip ratio 1.2 1.6 1.7 1.5 0.4

Site operating cost per ton milled (Cdn$)* $14.23 $13.93 $11.73 $9.72 $12.39

Copper concentrate

Head grade (%) 0.23 0.23 0.24 0.27 0.26

Copper recovery (%) 78.9 77.7 79.0 82.2 85.0

Production (million pounds Cu) 27.1 20.2 29.7 34.2 35.4

Sales (million pounds Cu) 26.3 22.6 31.7 35.9 32.1

Inventory (million pounds Cu) 2.9 2.3 4.9 6.9 8.8

Molybdenum concentrate

Production (thousand pounds Mo) 421 185 247 369 369

Sales (thousand pounds Mo) 348 221 258 364 370

Per unit data (US$ per pound produced) *

Site operating costs * $2.91 $2.88 $2.21 $1.59 $2.10

By-product credits* (0.25) (0.26) (0.17) (0.13) (0.23)

Site operating costs, net of by-product credits * $2.66 $2.62 $2.04 $1.46 $1.87

Off-property costs 0.26 0.37 0.42 0.45 0.33

Total operating costs (C1)* $2.92 $2.99 $2.46 $1.91 $2.20

Operations Analysis

Third Quarter Review

Gibraltar produced 27 million pounds of copper in the quarter. Copper production and mill throughput were impacted by nearly

three weeks of downtime in Concentrator #1 at the beginning of the quarter to complete the crusher relocation project,

concurrent mill maintenance, and the ramp back up to full capacity.

Copper head grades were 0.23% and more Connector pit ore was fed to the mill. Copper recoveries in the third quarter were

79%, in line with recent quarters, but lower than normal, as the upper benches of the Connector pit contain transition ore with

higher oxide content. As mining progresses deeper in the Connector pit, recoveries are expected to improve as oxide content

reduces.

A total of 23.2 million tons were mined in the third quarter, and the majority of ore and waste mining occurred in the Connector

pit during the period. A total of 1.7 million tons of oxide ore from the upper benches of the Connector pit were also added to the

heap leach pads in the period for future copper cathode production from Gibraltar’s currently idled SX/EW plant.

Total site costs* at Gibraltar of $111.3 million (which includes capitalized stripping of $3.6 million) was higher compared to the

previous quarter due to the Gibraltar mine being on care and maintenance during the labour strike

in June. Total site costs* were generally in line with the fourth quarter of 2023 and first quarter of 2024. Higher repairs and

maintenance costs were incurred in the quarter due to a large maintenance project on one of the shovels.

During the three months ended September 30, 2024, the Company incurred costs of $4.1 million in relation to the final phase

of the in-pit crusher relocation project for Concentrator #1 including demolition of the old station’s concrete foundation. Under

IFRS, these costs are expensed in the quarter through the statement of income (loss).

Molybdenum production was 421 thousand pounds in the third quarter. The 128% increase in quarter-over-quarter production is

primarily due to higher molybdenum grade in the Connector pit ore. At an average molybdenum price of US$21.77 per pound,

molybdenum generated a by-product credit per pound of copper produced of US$0.25 in the third quarter.

Off-property costs per pound produced* were US$0.26 for the third quarter, which is lower than recent quarters and reflects

lower average TCRC rates realized on third quarter shipments, some of which were tendered earlier in the year at negative

rates.

Total operating costs per pound produced (C1)* was US$2.92 for the quarter, compared to US$2.20 in the prior year quarter as

shown in the bridge graph below with the difference substantially attributed to the lower copper production in the quarter:

https://www.globenewswire.com/NewsRoom/AttachmentNg/0d7f5203-7171-4c0b-a812-df2577edc1cf

Gibraltar Outlook

The major project and related mill maintenance work was completed in the third quarter, and lower than planned mill availability

and throughput impacted copper production in the period. As a result, management does not expect to recover the copper

production that was lost during the 18-day strike in June and copper production for the year is now expected to be in the range

of 105 to 110 million pounds, compared to the original guidance of 115 million pounds. Increased mill availability and higher

throughput is expected to be the primary driver of improved copper production in the fourth quarter.

Mining activities have mostly transitioned to the Connector pit, which will be the main source of mill feed in the fourth quarter

and going forward. Mining of the current phase of the Gibraltar pit is expected to be finished in the first quarter of 2025.

Additional oxide ore from the Connector pit will also be added to the heap leach pads this year. Refurbishment of Gibraltar’s

SX/EW plant, which has been idle since 2015, has begun and the plant is expected to be restarted in mid-2025.

For 2025, copper head grade and tonnes milled are expected to improve and total copper production is expected to be in the

range of 120 to 130 million pounds. Lower grade ore stockpiles will be utilized to supplement mined ore in the first half of 2025,

which will result in copper production being weighted to the second half of the year. Molybdenum production is forecast to

increase next year as molybdenum head grades are expected to be notably higher in the Connector pit compared to the

Gibraltar pit.

The Company has tendered Gibraltar concentrate to various customers for the remainder of 2024 and for significant tonnages

in 2025 and 2026. In 2023, TCRCs accounted for approximately US$0.17 per pound of off-property costs. With these recently

awarded offtake contracts, the Company expects TCRCs to reduce to nil on average in 2025 on the sale of its copper

concentrate.

The Company has a prudent hedging program in place to protect a minimum copper price during the Florence construction

period. Currently, the Company has copper collar contracts that secure a minimum copper price of US$3.75 per pound for 21

million pounds of copper covering the fourth quarter of 2024, and copper collar contracts that secure a minimum copper price

of US$4.00 per pound for 108 million pounds of copper for 2025. The copper collar contracts also have ceiling prices between

US$5.00 and US$5.40 per pound (refer to the section “Hedging Strategy” for details).

Florence Copper

The Company has all the key permits in place for the commercial production facility at Florence Copper and construction has

commenced. First copper production is expected in the fourth quarter of 2025.

The Company has a technical report entitled “NI 43-101 Technical Report Florence Copper Project, Pinal County, Arizona”

dated March 30, 2023 (the “2023 Technical Report”) on SEDAR+. The 2023 Technical Report was prepared in accordance with

NI 43-101 and incorporated the results of testwork from the Production Test Facility (“PTF”) as well as updated capital and

operating costs (Q3 2022 basis) for the commercial production facility.

Project highlights based on the 2023 Technical Report:

• Net present value of US$930 million (at $US 3.75 copper price, 8% after-tax 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

• Remaining initial capital cost of US$232 million (Q3 2022 basis)

Construction of the Florence Copper commercial production facility continues to advance on schedule. A total of 34 production

wells out of a total of 90 new wells had been completed as of September 30, 2024. Earthworks and site preparation for the

plant area and commercial wellfield is estimated to be 75% complete and installation of structural steel, tanks, and process

equipment is underway. Construction of process and surface water run off ponds and the hiring of additional personnel for the

construction and operations teams continues.

The Company has a fixed-price contract with the general contractor for construction of the SX/EW plant and associated

surface infrastructure.

Florence Copper Quarterly Capital Spend

Three months

ended

Nine months

ended

(US$ in thousands)

September 30,

2024

September 30,

2024

Site and PTF operations 4,946 13,505

Commercial facility construction costs 42,405 97,253

Other capital costs 6,251 29,013

Total Florence project expenditures 53,602 139,771

Based on the 2023 Technical report, the estimated remaining construction costs for the commercial facility were US$232

million (basis Q3 2022), and management expects that total costs will be within 10% to 15% of that estimate. The project

remains on track for first copper production in late 2025.

Construction costs in the third quarter were US$42.4 million, and US$97.3 million has been incurred for the nine months ended

September 30, 2024. Other capital costs of US$29.0 million include final payments for delivery of long-lead equipment that was

ordered in 2022, and the construction of an evaporation pond to provide additional water management flexibility. Construction of

this evaporation pond was completed in the third quarter.

The Company has closed several Florence project level financings to fund initial commercial facility construction costs. In July

the Company received the third deposit of US$10 million from the US$50 million copper stream transaction with Mitsui & Co.

(U.S.A.) Inc. (“Mitsui”). The fourth deposit was received in October and the remaining US$10 million is scheduled to be

received in January 2025.

In addition, the Company has applied to the U.S. Department of Energy’s (“DOE”) Qualifying Advanced Energy Project Credit

(48C) Program. Florence Copper, which is set to become North America’s lowest GHG-intensity primary copper producer,

qualifies as a critical materials project. After submitting a concept paper in June, Florence Copper received encouragement to

proceed with the full application. The full application has now been filed seeking a tax credit of up to US$110 million, and the

Company expects to hear whether the project receives the credit, or not, in mid-January 2025. The Department of the Treasury

(“Treasury”) and the Internal Revenue Service (“IRS”), in partnership with DOE, have announced up to US$6 billion in a second

round of tax credit allocations for projects that expand clean energy manufacturing and recycling and critical materials refining,

processing and recycling, and for projects that reduce greenhouse gas emissions at industrial facilities. DOE’s Office of

Manufacturing & Energy Supply Chains manages the 48C program on behalf of IRS and Treasury.

Remaining project construction costs are expected to be funded with the Company’s available liquidity, remaining instalment

from Mitsui, and cashflow from its 100% ownership interest in Gibraltar. The Company also has in place an undrawn corporate

revolving credit facility for US$110 million.

Long-term Growth Strategy

Taseko’s strategy has been to grow the Company by acquiring and developing a pipeline of projects focused on copper in

North America. We continue to believe this will generate long-term returns for shareholders. Our other development projects

are located in British Columbia, Canada.

Yellowhead Copper Project

Based on a NI 43-101 technical report published in 2020, the Yellowhead Copper Project (“Yellowhead”) has an 817 million

tonne mineral reserve and a 25-year mine life. During 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. The Yellowhead copper project contains valuable precious metal by-products with 440,000 ounces of gold

and 19 million ounces of silver production over the life of mine.

The 2020 technical report was prepared using long-term copper price of US$3.10 per pound, a gold price of US$1,350 per

ounce, and silver price of US$18 per ounce. A new technical report will be published in 2025 using updated long-term metal

price assumptions, updated project costing, and incorporating the new Canadian tax credits available for copper mine

development.

The Company is preparing to enter the environmental assessment process in early 2025, and has recently opened a project

office to support ongoing engagement with local communities including First Nations. A site investigation field program was

completed in the third quarter, and the additional baseline data and modeling will be used to support the environmental

assessment and permitting of the project.

New Prosperity Gold-Copper Project

In late 2019, the Tŝilhqot’in Nation, as represented by Tŝilhqot’in National Government, and Taseko Mines Limited entered into

a confidential dialogue, with the involvement of the Province of British Columbia, seeking 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 standstill agreements

on certain outstanding litigation and regulatory matters relating to Taseko’s tenures and the area in the vicinity of Teẑtan Biny

(Fish Lake).

The dialogue process has made meaningful progress in recent months but is not complete. The Tŝilhqot’in Nation and Taseko

acknowledge the constructive nature of discussions, and the 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.

In March 2024, Tŝilhqot’in and Taseko formally reinstated the standstill agreement for a final term, with the goal of finalizing a

resolution before the end of this year.

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.

Conference Call and Webcast

The Company will host a telephone conference call and live webcast on Thursday, November 7, 2024, 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.

(Cdn$ in thousands, unless otherwise indicated)

2024

Q11

2023

Q41

2023

Q31

Cost of sales 124,833 108,637 122,528 93,914 94,383

Less:

Depletion and amortization (20,466) (13,721) (15,024) (13,326) (15,993)

Net change in inventories of finished goods 2,938 (10,462) (20,392) (1,678) 4,267

Net change in inventories of ore stockpiles 9,089 1,758 2,719 (3,771) 12,172

Transportation costs (8,682) (6,408) (10,153) (10,294) (7,681)

Site operating costs 107,712 79,804 79,678 64,845 87,148

Less by-product credits:

Molybdenum, net of treatment costs (8,962) (7,071) (6,112) (5,441) (9,900)

Silver, excluding amortization of deferred revenue (241) (144) (137) 124 290

Site operating costs, net of by-product credits 98,509 72,589 73,429 59,528 77,538

Total copper produced (thousand pounds) 27,101 20,225 26,694 29,883 30,978

Total costs per pound produced 3.63 3.59 2.75 1.99 2.50

Average exchange rate for the period (CAD/USD) 1.36 1.37 1.35 1.36 1.34

Site operating costs, net of by-product credits

(US$ per pound) 2.66 2.62 2.04 1.46 1.87

Site operating costs, net of by-product credits 98,509 72,589 73,429 59,528 77,538

Add off-property costs:

Treatment and refining costs 816 3,941 4,816 7,885 6,123

Transportation costs 8,682 6,408 10,153 10,294 7,681

Participants can join by conference call dial-in or webcast:

Conference Call Dial-In

• Participants can dial in to the conference call; however, pre-registration is required

• To register, visit https://bit.ly/TasekoQ32024_Dial-in

• Once registered, an email will be sent, including dial-in details and a unique access code required to join the live

call

• Please ensure you have registered at least 15 minutes prior to the conference call start time

Webcast

• A live webcast of the conference call can be accessed at https://bit.ly/TasekoQ32024

• The webcast will be archived for later playback until February 5, 2025 at tasekomines.com/investors/events/

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

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.

Total operating costs 108,008 82,938 88,398 77,707 91,342

Total operating costs (C1) (US$ per pound) 2.92 2.99 2.46 1.91 2.20

1 Q3 and Q4 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the

Company’s Gibraltar ownership from 75% to 87.5%. Q1 2024 includes the impact from the March 25, 2024 acquisition of

Cariboo from Dowa and Furukawa, which increased the Company’s Gibraltar ownership from 87.5% to 100%.

Total Site Costs

Total site costs are 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 Gibraltar calculated on a consistent basis for the periods presented.

(Cdn$ in thousands, unless otherwise indicated) –

87.5% basis (except for Q1, Q2 and Q3 2024)

2024

Q11

2023

Q41

2023

Q31

Site operating costs 107,712 79,804 79,678 64,845 87,148

Add:

Capitalized stripping costs 3,631 10,732 16,152 31,916 2,083

Total site costs – Taseko share 111,343 90,536 95,830 96,761 89,231

Total site costs – 100% basis 111,343 90,536 109,520 110,584 101,978

1 Q3 and Q4 2023 includes the impact from the March 15, 2023 acquisition of Cariboo from Sojitz, which increased the

Company’s Gibraltar ownership from 75% to 87.5%. Q1 2024 includes the impact from the March 25, 2024 acquisition of

Cariboo from Dowa and Furukawa, which increased the Company’s Gibraltar ownership from 87.5% to 100%.

Adjusted net income (loss) and Adjusted EPS

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;

• Other operating costs;

• Call premium on settlement of debt;

• Loss on settlement of long-term debt, net of capitalized interest;

• Gain on Cariboo acquisition;

• Gain on acquisition of control of Gibraltar;

• Realized gain on sale of inventory;

• Inventory write-ups to net realizable value that was sold or processed;

• Accretion and fair value adjustment on Florence royalty obligation; and

• Finance and other non-recurring costs for Cariboo acquisition.

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.

Adjusted net income (loss) and Adjusted EPS

(Cdn$ in thousands, except per share amounts)

2024

2023

Net (loss) income (180) (10,953) 18,896 38,076

Unrealized foreign exchange (gain) loss (7,259) 5,408 13,688 (14,541)

Unrealized loss on derivatives 1,821 10,033 3,519 1,636

Other operating costs 4,098 10,435 - -

Call premium on settlement of debt - 9,571 - -

Loss on settlement of long-term debt, net of capitalized

interest - 2,904 - -

Gain on Cariboo acquisition - - (47,426) -

Gain on acquisition of control of Gibraltar** - - (14,982) -

Realized gain on sale of inventory*** - 3,768 13,354 -

Inventory write-ups to net realizable value that was sold or

processed**** 3,266 4,056 - -

Accretion and fair value adjustment on Florence royalty

obligation 3,703 2,132 3,416 -

Accretion and fair value adjustment on consideration

payable to Cariboo 9,423 8,399 1,555 (916)

Non-recurring other expenses for Cariboo acquisition - 394 138 -

Estimated tax effect of adjustments (6,644) (15,644) 15,570 (195)

Adjusted net income 8,228 30,503 7,728 24,060

Adjusted EPS 0.03 0.10 0.03 0.08

(Cdn$ in thousands, except per share amounts)

2023

2022

Net income (loss) 871 9,991 33,788 (2,275)

Unrealized foreign exchange loss (gain) 14,582 (10,966) (950) (5,279)

Unrealized loss (gain) on derivatives 4,518 (6,470) 2,190 20,137

Gain on Cariboo acquisition - - (46,212) -

Accretion and fair value adjustment on consideration

payable to Cariboo 1,244 1,451 - -

Non-recurring other expenses for Cariboo acquisition - 263 - -

Estimated tax effect of adjustments (1,556) 1,355 16,272 (5,437)

Adjusted net income (loss) 19,659 (4,376) 5,088 7,146

Adjusted EPS 0.07 (0.02) 0.02 0.02

** The $15.0 million gain on acquisition of control of Gibraltar in Q1 2024 relates to the write-up of finished copper concentrate

inventory for Taseko’s 87.5% share to its fair value at March 25, 2024.

*** Cost of sales for the nine months ended September 30, 2024 included $17.1 million in write-ups to net realizable value for

concentrate inventory held at the date of acquisition of control of Gibraltar (March 25, 2024) that were subsequently sold. The

realized portion of the gains recorded in the first quarter for GAAP purposes was $13.4 million and for the second quarter were

$3.8 million and have been included in Adjusted net income in the period they were sold.

**** Write-ups to net realizable value for inventory held at the date of acquisition of control of Gibraltar (March 25, 2024) totaled

$9.2 million. The inventory write-ups in the first quarter for GAAP purposes have been included in Adjusted net income in the

period they were sold or processed. Cost of sales for the nine months ended September 30, 2024 included $7.3 million in

inventory write-ups that were subsequently sold or processed in the second and third quarters.

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;

• Amortization of share-based compensation expense;

• Other operating costs;

• Call premium on settlement of debt;

• Loss on settlement of long-term debt;

• Gain on Cariboo acquisition;

• Gain on acquisition of control of Gibraltar;

• Realized gain on sale of inventory;

• Inventory write-ups to net realizable value that was sold or processed; and

• Finance and other non-recurring costs for Cariboo acquisition.

(Cdn$ in thousands)

2024

2023

Net (loss) income (180) (10,953) 18,896 38,076

Add:

Depletion and amortization 20,466 13,721 15,024 13,326

Finance expense 25,685 21,271 19,849 12,804

Finance income (1,504) (911) (1,086) (972)

Income tax (recovery) expense (200) (3,247) 23,282 17,205

Unrealized foreign exchange (gain) loss (7,259) 5,408 13,688 (14,541)

Unrealized loss on derivatives 1,821 10,033 3,519 1,636

Amortization of share-based compensation expense 1,496 2,585 5,667 1,573

Other operating costs 4,098 10,435 - -

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