Building Value Through Operating and Developing Major Mining - - PowerPoint PPT Presentation

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Building Value Through Operating and Developing Major Mining Projects

June 11, 2014

Annual General Meeting

Forward Looking Statement

Some of the statements contained in the following material are "forward‐ looking statements". All statements in this release, other than statements

• f historical facts, that address estimated mineral resource and reserve

quantities, grades and contained metal, and possible future mining, exploration and development activities, are forward‐looking statements. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements should not be in any way construed as 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 for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 40‐F filing with the United States Securities Commission at www.sec.gov. and its Canadian securities filings that are available at www.sedar.com.

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2013 – Strong Headwinds

Declining Commodity Markets

$1.00 $2.00 $3.00 $4.00 Jan‐13 Apr‐13 Jul‐13 Oct‐13

Copper

Down 7%

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2013 – Strong Headwinds

Declining Commodity Markets

$4.00 $6.00 $8.00 $10.00 $12.00 Jan‐13 Apr‐13 Jul‐13 Oct‐13

Molybdenum

Down 18%

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2013 – Strong Headwinds

Declining Commodity Markets

$80.00 $100.00 $120.00 $140.00 $160.00 Jan‐13 Apr‐13 Jul‐13 Oct‐13

Iron Ore

Down 8%

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2013 – Strong Headwinds

Declining Commodity Markets

$2.00 $4.00 $6.00 $8.00 $10.00 Jan‐13 Apr‐13 Jul‐13 Oct‐13

Nickel

Down 23%

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2013 – Strong Headwinds

Declining Equity Markets

40 60 80 100 Jan‐13 Apr‐13 Jul‐13 Oct‐13

S&P/TSX Global Mining

Down 20%

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2013 – Strong Headwinds

Declining Equity Markets

600 700 800 900 1,000 1,100 Jan‐13 Apr‐13 Jul‐13 Oct‐13

S&P/TSX Div. Metals & Mining

Down 22%

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2013 – Strong Headwinds

Declining Equity Markets

100 150 200 250 300 350 Jan‐13 Apr‐13 Jul‐13 Oct‐13

S&P/TSX Global Gold

Down 48%

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LTM – Making up Ground

Positive Trend

80 100 120 May‐13 Aug‐13 Nov‐13 Feb‐14 May‐14

Taseko Copper S&P/TSX Global Mining S&P/TSX Global Gold Peers Taseko ‐Up 8% Copper – Down 8% S&P/TSX Global Mining – Up 7% S&P/TSX Global Gold – Down 10% Peers – Up 7%

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Superfecta

• Increasing Production
• 34% in 2013 (90 ‐ 121 Mlbs)
• Modern, world class mine
• Low geopolitical risk
• Weakening C$
• Significant benefit to a

Canadian producer

• Decreased operating costs
• 20% in 2013 (~$13.00 ‐ $10.50)
• Steady‐state operations to

provide further reductions

• Strong, stable copper price
• Supported by declining

inventories

Cash Flow

Production Operating Costs C$ Copper Price

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Increasing Production

30 60 90 120 150 180 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Copper Production (millions of lbs)

*

Note: Production amounts are on a 100% basis. *2014 is based on annualized first quarter production and not an estimate.

250% Increase in Copper Production

Copper Fundamentals

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Copper Fundamentals

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Taseko’s Growth Strategy

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Invest in Development Projects to Create Value Free cash flow generated by Gibraltar to support projects: Aley Niobium Project – metallurgical testing and Feasibility Study in 2014 New Prosperity Project – legal challenges to protect the project’s value Gibraltar expansion potential Other opportunities? Maximize Gibraltar Cash Flow Maintain strong balance sheet and conservative financial management Maintain strong cash position Continue to pay down debt (equipment leases) Continue to purchase copper put options for downside protection Grow revenue organically through the recently completed GDP3 Project Enhance margins through operating improvements and cost efficiencies

Create shareholder value by optimizing Gibraltar cash flow and through prudent investments

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Thank you.