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 volumes stated in this release are on a 100%
basis unless otherwise indicated.
|
VANCOUVER, BC, Aug. 4, 2021 /PRNewswire/ - Taseko Mines Limited
(TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or the
"Company") reports financial results for the three months ended
June 30, 2021. Adjusted EBITDA*
for the period was $47.7 million and
Earnings from mining operations before depletion and amortization
was $54.5 million, increases of 101%
and 80%, respectively, over the first quarter of 2021. Net
income for the second quarter 2021 was $13.4
million, or $0.05 per share,
and Adjusted net income was $9.9
million, or $0.04 per
share.
Stuart McDonald, President and
CEO of Taseko, commented, "Our improved financial performance in
the quarter was a result of the 20% increase in copper production
at Gibraltar, and bolstered by
strong copper prices which averaged US$4.40 per pound for the period. Head
grades at Gibraltar increased in
the latter part of the second quarter as we transitioned into
higher-grade benches, although average head grade for the quarter
was still below the life of mine average. With improving
grades, we expect total copper production in the second half of the
year to be at least 40% higher than the first half, which will lead
to lower unit costs and improved margins and cash flow
generation."
"At our Florence Copper project, permitting, engineering and
procurement activities are progressing. As reported in early July,
we expect the draft Underground Injection Control permit will be
issued by the US EPA later in the third quarter. Detailed
engineering is now 60% complete and at a point where we can begin
securing and making initial payments on key, long lead items for
the solvent extraction and electrowinning ("SX/EW") plant,"
continued Mr. McDonald. "Our balance sheet remains in a strong
position with $226 million of cash on
hand at June 30th, and a
price protection strategy in place that assures strong cash flow
generation over the next year. Advancing procurement
initiatives will position us to efficiently progress into
construction upon receipt of the final permit. Florence Copper will
be America's new, innovative and low impact copper producer
supplying the US domestic market with green copper."
Mr. McDonald added, "We recently announced the sale of our
Harmony Gold project to JDS Gold
Inc., who are a proven team of mine developers and builders.
Harmony is an advanced stage gold project, and by retaining a 15%
carried interest in JDS Gold Inc. and a 2% NSR on the project, we
have the opportunity to realize significant value from this asset
over the next few years. We will continue to look for other
opportunities to create shareholder value from our extensive
portfolio of long-life assets."
*Non-GAAP performance
measure. See end of news release
|
Second Quarter Review
- Second quarter earnings from mining operations before depletion
and amortization* was $54.5 million,
Adjusted EBITDA* was $47.7 million
and Adjusted net income* was $9.9
million ($0.04 per
share);
- Cash flows from operations was $72.5
million and the Company's cash balance at June 30, 2021 was $225.7
million;
- Site operating costs, net of by-product credits* were
US$1.77 per pound produced, and total
operating costs (C1)* were US$2.02
per pound produced;
- The Gibraltar mine produced
26.8 million pounds of copper in the second quarter. Copper
recoveries were 83.3% and copper head grades were 0.22%. Mining
operations transitioned into higher-grade benches in the Pollyanna
pit in the later part of the quarter which resulted in a 20%
increase in copper production over the first quarter and in line
with management expectations;
- Gibraltar sold 26.7 million
pounds of copper in the quarter (100% basis) which resulted in
$105.5 million of revenue for Taseko.
Average LME copper prices were US$4.40 per pound in the quarter;
- In June, Gibraltar's long term
offtake agreement for copper concentrate was extended with
treatment and refining costs priced within a range of a 40% to 50%
discount to benchmark levels, reflecting the high quality of
Gibraltar concentrate;
- Detailed engineering and design of the commercial facility at
Florence Copper is now 60% complete and the Company is preparing to
make initial deposits for major processing equipment associated
with the SX/EW plant, which will allow Florence Copper to
efficiently advance construction activities upon receipt of the
Underground Injection Control ("UIC") permit. The Company
expects a draft UIC permit to be issued in the third quarter which
will be followed by a public comment period;
- During the quarter, the Company extended its copper price
protection strategy by purchasing copper collars for the first half
of 2022 which secure a minimum copper price of US$4.00 per pound and a ceiling price of
US$5.60 per pound for 43 million
pounds of copper. These 2022 collar contracts supplement the
existing put option protection at US$3.75 per pound in place for the second half of
2021 for 41 million pounds of copper; and
- In July 2021, the Company entered
into an agreement to sell the Harmony Gold Project ("Harmony") to
JDS Gold Inc. ("JDS Gold"), a newly incorporated company controlled
by JDS Energy & Mining Inc. and affiliates. Under the terms of
the agreement, JDS Gold will become the owner and operator of
Harmony, a high-grade development-stage gold project located on
Graham Island in Haida Gwaii. The
Company retains a 2% net smelter return royalty in Harmony and a
15% carried interest in JDS Gold.
*Non-GAAP performance
measure. See end of news release
|
HIGHLIGHTS
Operating Data
(Gibraltar - 100% basis)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2021
|
2020
|
Change
|
2021
|
2020
|
Change
|
Tons mined
(millions)
|
24.9
|
20.5
|
4.4
|
56.9
|
49.0
|
7.9
|
Tons milled
(millions)
|
7.2
|
7.7
|
(0.5)
|
14.4
|
15.2
|
(0.8)
|
Production (million
pounds Cu)
|
26.8
|
36.8
|
(10.0)
|
49.0
|
69.2
|
(20.2)
|
Sales (million pounds
Cu)
|
26.7
|
39.3
|
(12.6)
|
48.7
|
70.4
|
(21.7)
|
Financial
Data
|
Three months ended
June 30,
|
Six months ended
June 30,
|
(Cdn$ in thousands,
except for per share amounts)
|
2021
|
2020
|
Change
|
2021
|
2020
|
Change
|
Revenues
|
111,002
|
106,005
|
4,997
|
197,743
|
168,089
|
29,654
|
Earnings from mining
operations before depletion and
amortization*
|
54,482
|
50,336
|
4,146
|
84,795
|
56,259
|
28,536
|
Cash flows provided
by operations
|
72,502
|
37,079
|
35,423
|
69,219
|
54,750
|
14,469
|
Adjusted
EBITDA*
|
47,732
|
50,860
|
(3,128)
|
71,454
|
56,206
|
15,248
|
Adjusted net income
(loss)*
|
9,948
|
8,335
|
1,613
|
4,414
|
(13,312)
|
17,726
|
Per share - basic
("adjusted EPS")*
|
0.04
|
0.03
|
0.01
|
0.02
|
(0.05)
|
0.07
|
Net income (loss)
(GAAP)
|
13,442
|
18,745
|
(5,303)
|
2,225
|
(30,205)
|
32,430
|
Per share - basic
("EPS")
|
0.05
|
0.08
|
(0.03)
|
0.01
|
(0.12)
|
0.13
|
|
*Non-GAAP performance
measure. See end of news release
|
REVIEW OF OPERATIONS
Gibraltar mine (75%
Owned)
Operating data
(100% basis)
|
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
Q3
2020
|
Q2
2020
|
Tons mined
(millions)
|
|
24.9
|
32.0
|
26.4
|
23.3
|
20.5
|
Tons milled
(millions)
|
|
7.2
|
7.2
|
7.5
|
7.5
|
7.7
|
Strip
ratio
|
|
2.3
|
6.0
|
1.9
|
1.5
|
1.9
|
Site operating cost
per ton milled (CAD$)*
|
|
$9.16
|
$8.73
|
$11.67
|
$9.57
|
$7.66
|
Copper
concentrate
|
|
|
|
|
|
|
Head
grade (%)
|
|
0.22
|
0.19
|
0.20
|
0.23
|
0.28
|
Copper
recovery (%)
|
|
83.3
|
81.5
|
83.3
|
85.0
|
85.2
|
Production (million pounds Cu)
|
|
26.8
|
22.2
|
25.0
|
28.9
|
36.8
|
Sales
(million pounds Cu)
|
|
26.7
|
22.0
|
25.0
|
28.6
|
39.3
|
Inventory (million pounds Cu)
|
|
3.5
|
3.6
|
3.4
|
3.6
|
3.8
|
Molybdenum
concentrate
|
|
|
|
|
|
|
Production (thousand pounds Mo)
|
|
402
|
530
|
549
|
668
|
639
|
Sales
(thousand pounds Mo)
|
|
455
|
552
|
487
|
693
|
656
|
Per unit data (US$
per pound produced)*
|
|
|
|
|
|
|
Site
operating costs*
|
|
$2.02
|
$2.23
|
$2.67
|
$1.85
|
$1.15
|
By-product credits*
|
|
(0.25)
|
(0.27)
|
(0.14)
|
(0.14)
|
(0.11)
|
Site operating costs,
net of by-product credits*
|
|
$1.77
|
$1.96
|
$2.53
|
$1.71
|
$1.04
|
Off-property
costs
|
|
0.25
|
0.27
|
0.29
|
0.29
|
0.30
|
Total operating costs
(C1)*
|
|
$2.02
|
$2.23
|
$2.82
|
$2.00
|
$1.34
|
Second Quarter Review
Copper production in the second quarter was 26.8 million pounds
and improved 20% from the first quarter as higher ore grades were
mined and processed from the Pollyanna pit in the latter part of
the quarter. Copper recoveries also improved with the
increasing ore grade.
A total of 24.9 million tons were mined in the second quarter in
line with the mine plan. Mining rates and strip ratio were
lower than the first quarter, which saw shorter hauling distances
in the upper benches of the Pollyanna pit. In addition to
longer hauls in the second quarter, mining rates were also impacted
by a temporary layoff of mining personnel due to permitting
delays. Initial waste stripping and dewatering of the
Gibraltar pit commenced in May
after receipt of the required permit.
Total site spending (including capitalized stripping of
$14.8 million on a 75% basis) was
generally consistent with the prior quarter. Capitalized stripping
in the quarter decreased from the first quarter as a result of the
lower strip ratio. Capital expenditures of $8.0 million on a 75% basis in the second quarter
was higher than the first quarter due to timing of routine
maintenance.
*Non-GAAP performance
measure. See end of news release
|
REVIEW OF OPERATIONS - CONTINUED
Molybdenum production was 402 thousand pounds in the second
quarter. Molybdenum prices strengthened in the second quarter and
reached a high of just over US$20 per
pound in late June. The average price of US$14.32 per pound was a $3.00 per pound increase from the first
quarter. By-product credits per pound of copper produced* was
US$0.25 in the second quarter, a
decrease over the prior quarter due primarily to an increase in
copper pounds produced.
Off-property costs per pound produced* were US$0.25 for the second quarter and lower
than prior quarters due to the benefit of lower treatment and
refining charges ("TCRC") on Gibraltar's offtake contracts. In addition,
the Company delivered a tender shipment in the quarter at one of
the lowest TCRC levels ever seen by the Gibraltar mine.
Total operating costs per pound produced (C1)* were US$2.02 for the quarter. Contributing to the
decrease in C1* costs was significantly increased copper production
compared to the first quarter, partially offset by lower
capitalized stripping costs and a weaker US dollar in the second
quarter.
GIBRALTAR
OUTLOOK
Mining will continue to be focused on the Pollyanna pit which
will be the main source of ore in 2021. Ore release from the
Gibraltar pit will commence in the
second half of the year. Total copper production in the second half
of 2021 is expected to be at least 40% higher than the first half
of the year, as higher-grade areas in Pollyanna are opened up and
available for processing. Due to the lower production at the start
of 2021, annual production is now anticipated to be approximately
120 million pounds, which is within the typical +/- 5% range for
annual guidance.
Copper prices rallied to record levels in the second quarter and
are currently around US$4.31 per pound. The current
copper price and expected production growth is supportive of
improved financial performance at the Gibraltar mine over the remainder of 2021.
Many governments are now focusing on increased infrastructure
investment to stimulate economic recovery after the pandemic,
including green initiatives, which will require new primary
supplies of copper. Most industry analysts are projecting ongoing
supply constraints and deficits, which should support these higher
copper prices in the years to come.
In March 2021, the Company
extended its copper price protection strategy by purchasing put
options covering 41 million pounds of copper at a strike price of
US$3.75 per pound for the second half
of 2021. The Company has also purchased copper collars to
secure a minimum copper price of US$4.00 per pound for 43 million pounds of copper
for the first half of 2022. This approach to managing copper price
volatility provides security over the Company's cash flow as it
prepares for construction of Florence Copper while providing
significant upside should copper prices continue at these levels or
increase further.
FLORENCE COPPER
The commercial production facility at Florence Copper will be
one of the greenest sources of copper for US domestic consumption,
with carbon emissions, water and energy consumption all
dramatically lower than a conventional mine. It is a unique
low-cost copper project that will have 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 also be
in the lowest quartile of the global copper cost curve. The
Company has successfully operated a Production Test Facility
("PTF") for the last two years at Florence to demonstrate that the in-situ
copper recovery ("ISCR") process can produce high quality cathode
while operating within permit conditions.
*Non-GAAP performance
measure. See end of news release
|
FLORENCE COPPER -
CONTINUED
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). 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 UIC permit from the U.S. Environmental
Protection Agency ("EPA"). The EPA's technical review for the UIC
permit has not identified any issues and the Company expects to
receive the draft UIC permit in the third quarter followed by a
public comment period.
Detailed engineering and design for the commercial production
facility is now 60% complete and the Company is preparing to make
initial deposits for major processing equipment associated with the
SX/EW plant starting in the third quarter to ensure a smooth and
efficient transition into construction once the final UIC permit is
received.
With a cash balance of $226
million at the end of June, the Company has the majority of
the required funding for construction of the commercial facility at
Florence Copper in hand. Coupled with stronger expected
operating cash flows from Gibraltar due to higher prevailing copper
prices, the Company has numerous options available to obtain any
remaining funding.
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 focused primarily on copper and 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. 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 focusing its current efforts on advancing the
environmental assessment and some additional engineering work in
conjunction with ongoing engagement with local communities
including First Nations. A focus group has been formed
between the Company and high-level regulators in the appropriate
Provincial ministries in order to expedite the advancement of
the environmental assessment and the permitting of the
project.
*Non-GAAP performance
measure. See end of news release
|
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, facilitated by the Province of British Columbia, to try to obtain a long-term
solution 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. 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 COVID-19 pandemic delayed the commencement of the dialogue,
but the Tŝilhqot'in Nation, the Province of British Columbia and Taseko have made progress
in establishing a constructive dialogue. In December 2020, the parties agreed to extend the
standstill for a further year to continue this dialogue.
Aley Niobium Project
Environmental monitoring and product marketing initiatives on
the Aley Niobium project continue. The pilot plant program has
successfully completed the niobium flotation process portion of the
test, raising confidence in the design and providing feed to the
converter portion of the process. Completion of the converter pilot
test, which is underway, will provide additional process data to
support the design of the commercial process facilities and provide
final product samples for marketing purposes.
The Company will host
a telephone conference call and live webcast on Thursday, August 5,
2021 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. The conference call will be
archived for later playback until August 19, 2021 and can be
accessed by dialing 416-764-8677 Canada, 888-390-0541 in the United
States, or online at tasekomines.com/investors/events and
using the passcode 121055#.
|
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%
|
Three months
ended
June 30,
|
Six months
ended
June
30,
|
basis
|
2021
|
2020
|
2021
|
2020
|
Cost of
sales
|
74,056
|
81,181
|
146,322
|
164,490
|
Less:
|
|
|
|
|
Depletion and
amortization
|
(17,536)
|
(25,512)
|
(33,374)
|
(52,660)
|
Net change in
inventories of finished goods
|
(4,723)
|
(5,753)
|
(2,464)
|
(4,451)
|
Net change in
inventories of ore stockpiles
|
2,259
|
(50)
|
(5,967)
|
553
|
Transportation
costs
|
(4,303)
|
(5,834)
|
(7,608)
|
(10,353)
|
Site operating
costs
|
49,753
|
44,032
|
96,909
|
97,579
|
Less by-product
credits:
|
|
|
|
|
Molybdenum,
net of treatment costs
|
(6,138)
|
(4,252)
|
(11,742)
|
(7,483)
|
Silver,
excluding amortization of deferred revenue
|
64
|
(28)
|
(174)
|
(382)
|
Site operating costs,
net of by-product credits
|
43,679
|
39,752
|
84,993
|
89,714
|
Total copper produced
(thousand pounds)
|
20,082
|
27,576
|
36,766
|
51,894
|
Total costs per pound
produced
|
2.18
|
1.44
|
2.31
|
1.73
|
Average exchange rate
for the period (CAD/USD)
|
1.23
|
1.39
|
1.25
|
1.37
|
Site operating
costs, net of by-product credits (US$ per pound)
|
1.77
|
1.04
|
1.85
|
1.27
|
Site operating costs,
net of by-product credits
|
43,679
|
39,752
|
84,993
|
89,714
|
Add off-property
costs:
|
|
|
|
|
Treatment and
refining costs
|
1,879
|
5,676
|
4,293
|
10,632
|
Transportation
costs
|
4,303
|
5,834
|
7,608
|
10,353
|
Total operating
costs
|
49,861
|
51,262
|
96,894
|
110,699
|
Total operating
costs (C1) (US$ per pound)
|
2.02
|
1.34
|
2.11
|
1.56
|
NON-GAAP PERFORMANCE MEASURES - CONTINUED
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, 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.
|
Three months
ended
June 30,
|
Six months
ended
June
30,
|
(Cdn$ in thousands,
except per share amounts)
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
13,442
|
18,745
|
2,225
|
(30,205)
|
Unrealized
foreign exchange (gain) loss
|
(3,764)
|
(12,985)
|
5,034
|
16,762
|
Realized
foreign exchange gain on settlement of long-term debt
|
-
|
-
|
(13,000)
|
-
|
Loss on
settlement of long-term debt
|
-
|
-
|
12,739
|
-
|
Unrealized
loss on derivatives
|
370
|
3,528
|
1,172
|
180
|
Estimated tax
effect of adjustments
|
(100)
|
(953)
|
(3,756)
|
(49)
|
Adjusted net
income (loss)
|
9,948
|
8,335
|
4,414
|
(13,312)
|
Adjusted
EPS
|
0.04
|
0.03
|
0.02
|
(0.05)
|
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);
- Realized foreign exchange gain on settlement of long-term debt;
and
- Amortization of share-based compensation expense.
|
Three months
ended
June
30,
|
Six months
ended
June
30,
|
(Cdn$ in
thousands)
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
13,442
|
18,745
|
2,225
|
(30,205)
|
Add:
|
|
|
|
|
Depletion and
amortization
|
17,536
|
25,512
|
33,374
|
52,660
|
Finance
expense (includes loss on settlement of long-term debt)
|
11,649
|
10,461
|
35,607
|
21,232
|
Finance
income
|
(184)
|
(48)
|
(259)
|
(198)
|
Income tax
(recovery) expense
|
7,033
|
4,326
|
2,731
|
(5,792)
|
Unrealized
foreign exchange (gain) loss
|
(3,764)
|
(12,985)
|
5,034
|
16,762
|
Realized
foreign exchange gain on settlement of long-term debt
|
-
|
-
|
(13,000)
|
-
|
Unrealized
loss on derivatives
|
370
|
3,528
|
1,172
|
180
|
Amortization of
share-based compensation expense
|
1,650
|
1,321
|
4,570
|
1,567
|
Adjusted
EBITDA
|
47,732
|
50,860
|
71,454
|
56,206
|
NON-GAAP PERFORMANCE MEASURES - CONTINUED
Earnings from mining operations before depletion and
amortization
Earnings from mining operations before depletion and
amortization is earnings from mining operations with depletion and
amortization added back. The Company discloses this measure, which
has been derived from our financial statements and applied on a
consistent basis, to provide assistance in understanding the
results of the Company's operations and financial position and it
is meant to provide further information about the financial results
to investors.
|
Three months
ended
June 30,
|
Six months
ended
June 30,
|
(Cdn$ in
thousands)
|
2021
|
2020
|
2021
|
2020
|
Earnings from
mining operations
|
36,946
|
24,824
|
51,421
|
3,599
|
Add:
|
|
|
|
|
Depletion and
amortization
|
17,536
|
25,512
|
33,374
|
52,660
|
Earnings from
mining operations before depletion and amortization
|
54,482
|
50,336
|
84,795
|
56,259
|
Site operating costs per ton milled
|
Three months
ended
June 30,
|
Six months
ended
June 30,
|
(Cdn$ in thousands,
except per ton milled amounts)
|
2021
|
2020
|
2021
|
2020
|
Site operating
costs (included in cost of sales)
|
49,753
|
44,032
|
96,909
|
97,579
|
|
|
|
|
|
Tons milled
(thousands) (75% basis)
|
5,429
|
5,748
|
10,831
|
11,370
|
Site operating
costs per ton milled
|
$9.16
|
$7.66
|
$8.95
|
$8.58
|
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.
View original
content:https://www.prnewswire.com/news-releases/taseko-reports-48-million-of-adjusted-ebitda-for-the-second-quarter-2021-301348737.html
SOURCE Taseko Mines Limited