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, Nov. 3, 2021 /PRNewswire/ - Taseko Mines
Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or the
"Company") reports revenues of $132.6
million, Earnings from mining operations before depletion
and amortization* of $83.7 million,
Adjusted EBITDA* of $76.3 million and
Adjusted net income* of $27.0
million, or $0.10 per share,
in the third quarter of 2021.
Stuart McDonald, President and
CEO of Taseko, stated, "Gibraltar
produced 34.5 million pounds of copper in the third quarter, a 29%
increase over the prior quarter, as copper grades improved in line
with our expectations and the mine plan. Higher metal production
led to lower unit costs as Total operating costs (C1)* fell to
US$1.57 per pound produced, 22% lower
than the previous quarter. Copper markets remained robust through
the period, resulting in Adjusted EBITDA* of $76 million, which is 60% higher than the
previous quarter and 140% higher than the comparative period last
year."
"During the third quarter, the Gibraltar pit started producing ore to
supplement existing production from the Pollyanna pit. The combined
ore feed is being efficiently processed and the transition to the
Gibraltar pit will continue over
the next few quarters. We expect a strong fourth quarter and copper
production for the year should be in line with the previous
guidance of approximately 120 million pounds.
At Florence, we continue to
advance detailed engineering and have made initial deposits on
long-lead equipment orders, which we believe will mitigate the
impact of heightening global supply chain issues on the
construction schedule. Recent feedback from the US Environmental
Protection Agency ("EPA") on the draft Underground Injection
Control ("UIC") permit is that no new issues have arisen, but final
drafting and review of the permit is taking longer than
anticipated. We expect to receive the draft permit from the EPA
shortly and once received, will complete our review within the
allotted timeframe and look forward to the public comment period
commencing," continued Mr. McDonald.
"Our balance sheet remains strong and our cash position
increased quarter-over-quarter to $239
million, despite the $15
million of capital spending at Florence and a $18
million semi-annual interest payment on our bonds during the
period. We now have approximately $300
million in available liquidity and are well positioned to
move into our next phase of growth with construction of the
Florence Copper commercial production facility," concluded Mr.
McDonald.
Third Quarter Review
- Third quarter earnings from mining operations before depletion
and amortization* was $83.7 million,
Adjusted EBITDA* was $76.3 million
and cash flows from operations was $68.3
million;
- Adjusted net income* was $27.0
million ($0.10 per share), a
171% increase from the second quarter;
- Site operating costs, net of by-product credits* were
US$1.28 per pound produced, and total
operating costs (C1)* were US$1.57
per pound produced;
- The Gibraltar mine produced
34.5 million pounds of copper and 571 thousand pounds of molybdenum
in the third quarter, increases of 29% and 42% over the second
quarter, respectively. Copper recoveries were 84.2% and copper head
grades were 0.28%, in line with management expectations;
- Gibraltar sold 32.4 million
pounds of copper in the quarter (100% basis) which contributed to
$132.6 million of revenue for Taseko,
an increase of 19% over the second quarter. Average realized
copper prices were US$4.26 per pound
in the quarter, consistent with the LME average price;
- The Company has approximately $300
million of available liquidity, including a cash balance of
$239 million at September 30, 2021 and a US$50 million revolving credit facility (the
"Facility"). The Facility, which closed in early October, was
arranged and fully underwritten by National Bank of Canada, will be available for working capital
and general corporate purposes, and provides additional financial
flexibility as the Company prepares for the construction at
Florence Copper;
- Development costs incurred for Florence Copper were
$19.1 million in the third quarter
and included detailed engineering and design of the
commercial facility, and initial deposits for major processing
equipment associated with the solvent extraction and electrowinning
("SX/EW") plant. These activities will allow the project team
to efficiently advance into construction upon receipt of the
Underground Injection Control ("UIC") permit;
- The EPA continues to make progress towards finalizing the UIC
permit with no significant issues raised to-date, and the Company
is expecting to receive the draft permit from the EPA shortly for
its review. Once publicly issued by the EPA, there will be a
public comment period;
- The Company has secured minimum copper price protection for the
coming quarters including 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$5.60 per pound for 43 million
pounds of copper; and
- In September 2021, the Company
completed the sale of the Harmony Gold Project ("Harmony") to JDS
Gold Inc. ("JDS Gold"), a newly incorporated company controlled by
JDS Energy & Mining Inc. and affiliates. Under the terms of the
agreement, JDS Gold became the owner and operator of Harmony, a
high-grade development-stage gold project located on Graham Island in Haida Gwaii. The Company
retained a 2% net smelter return royalty in Harmony and a 15%
carried interest in JDS Gold.
*Non-GAAP performance
measure. See end of news release
|
HIGHLIGHTS
Operating Data
(Gibraltar - 100% basis)
|
Three months
ended
September 30,
|
Nine months
ended
September 30,
|
|
2021
|
2020
|
Change
|
2021
|
2020
|
Change
|
Tons mined
(millions)
|
25.2
|
23.3
|
1.9
|
82.1
|
72.3
|
9.8
|
Tons milled
(millions)
|
7.4
|
7.5
|
(0.1)
|
21.9
|
22.6
|
(0.7)
|
Production (million
pounds Cu)
|
34.5
|
28.9
|
5.6
|
83.5
|
98.1
|
(14.6)
|
Sales (million pounds
Cu)
|
32.4
|
28.6
|
3.8
|
81.1
|
99.0
|
(17.9)
|
Financial
Data
|
Three months
ended
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in thousands,
except for per share amounts)
|
2021
|
2020
|
Change
|
2021
|
2020
|
Change
|
Revenues
|
132,563
|
87,780
|
44,783
|
330,306
|
255,869
|
74,437
|
Earnings from mining
operations before depletion and
amortization*
|
83,681
|
35,705
|
47,976
|
168,476
|
91,964
|
76,512
|
Cash flows provided
by operations
|
68,319
|
31,021
|
37,298
|
137,538
|
85,771
|
51,767
|
Adjusted
EBITDA*
|
76,291
|
31,545
|
44,746
|
147,745
|
87,751
|
59,994
|
Adjusted net income
(loss)*
|
27,020
|
(5,754)
|
32,774
|
31,433
|
(19,066)
|
50,499
|
Per share - basic
("adjusted EPS")*
|
0.10
|
(0.02)
|
0.12
|
0.11
|
(0.08)
|
0.19
|
Net income (loss)
(GAAP)
|
22,485
|
987
|
21,498
|
24,710
|
(29,218)
|
53,928
|
Per share - basic
("EPS")
|
0.08
|
-
|
0.08
|
0.09
|
(0.12)
|
0.21
|
|
*Non-GAAP performance
measure. See end of news release
|
REVIEW OF OPERATIONS
Gibraltar mine (75%
Owned)
Operating data
(100% basis)
|
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
Q3
2020
|
Tons mined
(millions)
|
|
25.2
|
24.9
|
32.0
|
26.4
|
23.3
|
Tons milled
(millions)
|
|
7.4
|
7.2
|
7.2
|
7.5
|
7.5
|
Strip
ratio
|
|
1.3
|
2.3
|
6.0
|
1.9
|
1.5
|
Site operating cost
per ton milled (Cdn$)*
|
|
$8.99
|
$9.16
|
$8.73
|
$11.67
|
$9.57
|
Copper
concentrate
|
|
|
|
|
|
|
Head
grade (%)
|
|
0.28
|
0.22
|
0.19
|
0.20
|
0.23
|
Copper
recovery (%)
|
|
84.2
|
83.3
|
81.5
|
83.3
|
85.0
|
Production (million pounds Cu)
|
|
34.5
|
26.8
|
22.2
|
25.0
|
28.9
|
Sales
(million pounds Cu)
|
|
32.4
|
26.7
|
22.0
|
25.0
|
28.6
|
Inventory (million pounds Cu)
|
|
4.9
|
3.5
|
3.6
|
3.4
|
3.6
|
Molybdenum
concentrate
|
|
|
|
|
|
|
Production (thousand pounds Mo)
|
|
571
|
402
|
530
|
549
|
668
|
Sales
(thousand pounds Mo)
|
|
502
|
455
|
552
|
487
|
693
|
Per unit data (US$
per pound produced)*
|
|
|
|
|
|
|
Site
operating costs*
|
|
$1.53
|
$2.02
|
$2.23
|
$2.67
|
$1.85
|
By-product credits*
|
|
(0.25)
|
(0.25)
|
(0.27)
|
(0.14)
|
(0.14)
|
Site operating costs,
net of by-product credits*
|
|
$1.28
|
$1.77
|
$1.96
|
$2.53
|
$1.71
|
Off-property
costs
|
|
0.29
|
0.25
|
0.27
|
0.29
|
0.29
|
Total operating costs
(C1)*
|
|
$1.57
|
$2.02
|
$2.23
|
$2.82
|
$2.00
|
Third Quarter Review
Copper production in the third quarter was 34.5 million pounds
and improved 29% over the second quarter as higher ore grades were
mined and processed from the Pollyanna pit. Copper recoveries
also improved with the increasing ore grade.
A total of 25.2 million tons were mined in the third quarter in
line with the mine plan and the second quarter. The strip
ratio decreased as a result of mining in Pollyanna opening higher
grade areas with lower stripping rates. There was also an
increase of 3.7 million tons added to ore stockpiles. While
Pollyanna ore remains the primary mill feed, waste stripping
activities also increased in the Gibraltar East pit during the
quarter.
Total site spending (including capitalized stripping of
$10.9 million on a 75% basis) was 4%
lower than the prior quarter due mainly to the timing of routine
maintenance. Sustaining capital expenditures at Gibraltar of $8.3
million on a 75% basis in the third quarter was comparable
to the second quarter.
*Non-GAAP performance
measure. See end of news release
|
REVIEW OF OPERATIONS - CONTINUED
Molybdenum production was 571 thousand pounds in the third
quarter and increased due to higher grades of molybdenum in the
ore. Molybdenum prices also strengthened in the third quarter and
reached a high of US$20.10 per pound
in late August. The average molybdenum price of US$19.05 per pound was a US$4.73 per pound increase over the second
quarter. By-product credits per pound of copper produced
remained at US$0.25 in the third
quarter despite the increased copper production.
Off-property costs per pound produced* were US$0.29 for the third quarter and higher
than the second quarter due to increased trucking of concentrate in
July and August in response to wildfires in the BC interior which
impacted railcar movements. The Company also realized lower
treatment and refining charges ("TCRC") in the second quarter as a
spot tender was delivered at one of the lowest TCRC levels ever
seen by the Gibraltar mine.
Total operating costs per pound produced (C1)* were US$1.57 for the quarter, 22% lower than the
previous quarter. The decrease in C1* costs was primarily due to
the significantly increased copper production in the third quarter
compared to the second quarter.
GIBRALTAR
OUTLOOK
Total copper production in the last quarter of 2021 is expected
to be similar to the third quarter, as higher-grade areas in the
Pollyanna pit are available for processing. The Company continues
to expect approximately 120 million pounds of copper production for
the 2021 year.
Copper prices in the third quarter averaged US$4.25 per pound and are currently
around US$4.30 per pound and recently tested record levels
again due to depleted warehouse inventories and a unique supply
squeeze attributed to smelter closures resulting from an Asian and
European energy crisis as well as continued supply chain challenges
caused by the economic restart. High copper prices, and
downside protection from copper hedges in place, are
supportive of strong financial performance at the Gibraltar mine over the coming quarters.
The copper price outlook into 2022 remains quite favorable with
many governments now focusing on increased infrastructure
investment to stimulate economic recovery after the pandemic,
including green initiatives, which will require new primary
supplies of copper. Although some analysts predict a balanced
market by 2023 based on known projects currently under development,
most industry analysts are projecting ongoing supply constraints
and deficits, which should support higher copper prices in the
years to come.
The Company has a long track record of purchasing copper price
options to manage copper price volatility. This strategy
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. In particular, the Company has copper collars to
secure a minimum copper price of US$4.00 per pound for the first half of 2022 for
43 million pounds of copper.
*Non-GAAP performance
measure. See end of news release
|
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 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.
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). 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"), which is the final permitting step
required prior to construction of the commercial ISCR
facility. The EPA continues to make progress towards
finalizing the permit with no significant issues raised to-date,
and the Company is expecting to receive the draft UIC permit from
the EPA shortly. Once the permit is publicly issued, a public
comment period will commence.
Detailed engineering and design for the commercial production
facility is now approximately 85% complete. The Company has
made initial deposits and awarded the key contract for the major
processing equipment associated with the SX/EW plant in the third
quarter. The Company has made purchase commitments of
US$25 million as at September 30, 2021 to assist with protecting the
project execution plan and mitigating the impact of supply chain
disruptions. Deploying strategic capital and awarding key
contracts will ensure a smooth and efficient transition into
construction once the final UIC permit is received.
At current copper prices, the Company expects to be able to fund
construction of the commercial facility from its existing sources
of liquidity and cashflows from Gibraltar.
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.
*Non-GAAP performance
measure. See end of news release
|
LONG-TERM GROWTH STRATEGY - CONTINUED
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 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 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 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, November
4, 2021 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific time) 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 November 18, 2021 and can
be accessed by dialing 416-764-8677 Canada, 888-390-0561 in
the United States, or online at
tasekomines.com/investors/events and using the passcode 709396
#.
|
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
|
Three months
ended
September 30,
|
Nine months
ended
September
30,
|
2021
|
2020
|
2021
|
2020
|
Cost of
sales
|
65,893
|
75,969
|
212,215
|
240,459
|
Less:
|
|
|
|
|
Depletion and
amortization
|
(17,011)
|
(23,894)
|
(50,385)
|
(76,554)
|
Net change in
inventories of finished goods
|
762
|
1,415
|
(1,702)
|
(3,026)
|
Net change in
inventories of ore stockpiles
|
6,291
|
4,186
|
324
|
4,729
|
Transportation
costs
|
(5,801)
|
(4,127)
|
(13,409)
|
(14,480)
|
Site operating
costs
|
50,134
|
53,549
|
147,043
|
151,128
|
Less by-product
credits:
|
|
|
|
|
Molybdenum,
net of treatment costs
|
(8,574)
|
(4,109)
|
(20,315)
|
(11,592)
|
Silver,
excluding amortization of deferred revenue
|
300
|
(54)
|
127
|
(436)
|
Site operating costs,
net of by-product credits
|
41,860
|
49,386
|
126,855
|
139,100
|
Total copper produced
(thousand pounds)
|
25,891
|
21,658
|
62,657
|
73,552
|
Total costs per pound
produced
|
1.62
|
2.28
|
2.02
|
1.89
|
Average exchange rate
for the period (CAD/USD)
|
1.26
|
1.33
|
1.25
|
1.35
|
Site operating
costs, net of by-product credits (US$ per pound)
|
1.28
|
1.71
|
1.62
|
1.40
|
Site operating costs,
net of by-product credits
|
41,860
|
49,386
|
126,855
|
139,100
|
Add off-property
costs:
|
|
|
|
|
Treatment and
refining costs
|
3,643
|
4,254
|
7,936
|
18,070
|
Transportation
costs
|
5,801
|
4,127
|
13,409
|
14,480
|
Total operating
costs
|
51,304
|
57,767
|
148,200
|
171,650
|
Total operating
costs (C1) (US$ per pound)
|
1.57
|
2.00
|
1.90
|
1.72
|
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 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.
|
Three months
ended
September 30,
|
Nine months
ended
September
30,
|
(Cdn$ in thousands,
except per share amounts)
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
22,485
|
987
|
24,710
|
(29,218)
|
Unrealized
foreign exchange (gain) loss
|
9,511
|
(7,512)
|
14,545
|
9,250
|
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)
|
1,056
|
(5,645)
|
1,236
|
Estimated tax
effect of adjustments
|
1,841
|
(285)
|
(1,916)
|
(334)
|
Adjusted net
income (loss)
|
27,020
|
(5,754)
|
31,433
|
(19,066)
|
Adjusted
EPS
|
0.10
|
(0.02)
|
0.11
|
(0.08)
|
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 gain on settlement of long-term debt;
and
- Amortization of share-based compensation expense.
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
(Cdn$ in
thousands)
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
22,485
|
987
|
24,710
|
(29,218)
|
Add:
|
|
|
|
|
Depletion and
amortization
|
17,011
|
23,894
|
50,385
|
76,554
|
Finance
expense (includes loss on settlement of long-term debt and call
premium)
|
11,875
|
11,203
|
47,482
|
32,435
|
Finance
income
|
(201)
|
(4)
|
(460)
|
(202)
|
Income tax
(recovery) expense
|
22,310
|
(580)
|
25,041
|
(6,372)
|
Unrealized
foreign exchange (gain) loss
|
9,511
|
(7,512)
|
14,545
|
9,250
|
Realized
foreign exchange gain on settlement of long-term debt
|
-
|
-
|
(13,000)
|
-
|
Unrealized
(gain) loss on derivatives
|
(6,817)
|
1,056
|
(5,645)
|
1,236
|
Amortization of
share-based compensation expense
|
117
|
2,501
|
4,687
|
4,068
|
Adjusted
EBITDA
|
76,291
|
31,545
|
147,745
|
87,751
|
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
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in
thousands)
|
2021
|
2020
|
2021
|
2020
|
Earnings from
mining operations
|
66,670
|
11,811
|
118,091
|
15,410
|
Add:
|
|
|
|
|
Depletion and
amortization
|
17,011
|
23,894
|
50,385
|
76,554
|
Earnings from
mining operations before depletion and
amortization
|
83,681
|
35,705
|
168,476
|
91,964
|
Site operating costs per ton milled
|
Three months
ended
September 30,
|
Nine months
ended
September 30,
|
(Cdn$ in thousands,
except per ton milled amounts)
|
2021
|
2020
|
2021
|
2020
|
Site operating
costs (included in cost of sales)
|
50,134
|
53,549
|
147,043
|
151,128
|
|
|
|
|
|
Tons milled
(thousands) (75% basis)
|
5,576
|
5,595
|
16,406
|
16,965
|
Site operating
costs per ton milled
|
$8.99
|
$9.57
|
$8.96
|
$8.91
|
|
|
|
|
|
|
|
|
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-significantly-improved-adjusted-ebitda-of-76-million-for-the-third-quarter-2021-301415806.html
SOURCE Taseko Mines Limited