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Building Value Through Operating and Developing Major Mining Projects

Taseko 2015 Annual General MeetingJune 11, 2015

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Forward Looking Statements

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

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

Forward Looking Statements

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Taseko Valuation

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What is Net Asset Value?• an expression of the underlying value of a company• the value of a company’s assets minus the value of its liabilities• typically stated on a ‘per share’ basis

How is the value of Taseko’s assets calculated?• net present value based on discounted cash flows• in situ value for less advanced projects

Net Asset Value

Taseko Valuation

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How has Taseko increased its NAV?• Through prudent, accretive investments or value creating

acquisitions, such as:• $700 million to expand and modernize Gibraltar (from 50 million

to 140 million pounds annually)• $30 million invested in Aley resulting in $860 million net present

value• $50 million acquisition for Florence Project with $850 million

net present value

Net Asset Value

Taseko Value

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$0.00

$4.00

$8.00

$12.00

$16.00

Jan‐08 Jan‐09 Jan‐10 Jan‐11 Jan‐12 Jan‐13 Jan‐14 Jan‐15

NAV/Share

Federal Government Rejection of Prosperity

Sale of 25% of Gibraltar for $190 million

BC Provincial Approval for Prosperity

830 Million Tonne Prosperity Reserve

Successful Exploration Program at Aley

Curis Resources Acquisition

Net Asset Value Per Share2015 Gibraltar

Reserve Update

Taseko has focused on investments which increase NAV per share.

84 Million Tonne Aley Reserve

Taseko Value

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$0.00

$4.00

$8.00

$12.00

$16.00

Jan‐08 Jan‐09 Jan‐10 Jan‐11 Jan‐12 Jan‐13 Jan‐14 Jan‐15

NAV/Share Taseko Share Price

Taseko Share Price vs. NAV

Increasing NAV and share price disconnected

Taseko Value

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$2.00

$3.00

$4.00

$5.00

Jan‐11 Jul‐11 Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Jan‐15

Copper

$2.00

$6.00

$10.00

$14.00

$18.00


Moly

$60.00

$100.00

$140.00

$180.00

$220.00

Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Jan‐15

Coal

$20.00

$60.00

$100.00

$140.00

$180.00

Dec‐11 Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jun‐14 Dec‐14

Iron Ore

Down 37% Down 53%

Down 53%Down 59%

Why the Disconnect?

Taseko Value

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20

50

80

110

140


S&P/TSX Global Mining

40

80

120

160

200


S&P/TSX Global Base Metals

200

600

1000

1400

1800


S&P/TSX Diverisified Metals & Mining

100

200

300

400

500


S&P/TSX Global Gold

Down 49% Down 61%

Down 41%Down 51%

Why the Disconnect?

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Looking Forward

Improving Production

Stabilized Market

Solid Financials

Strong Starting Point to Rebuild Valuation

Quality Projects

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Looking Forward

Mine• 2014 operational challenges behind us• Availability of mining equipment meeting targeted rates• Updated Mine Plan will improve Gibraltar economics


60%

70%

80%

90%

100%

Q1 14 Q2 14 Q3 14 Q4 14 January February March April

Mining Equipment Availability

Shovel Truck

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Looking ForwardImproving Production

Mill• Operating above design capacity – YTD throughput of 86,700 tons per day• Grade has increased by ~25% since Q4/14• Recoveries have increased by 5% since Q4/14

55,000

65,000

75,000

85,000

95,000

Q1 14 Q2 14 Q3 14 Q4 14 January February March April May

Average Tons Per Day

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Looking Forward

Operating Costs• Cost per ton milled down 20% in last six months as spending decreased• Cost per pound expected to drop by ~30% (from Q4) to US$2.00


$3

$5

$7

$9

$11

$13

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

Cost Per Ton Milled

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Looking ForwardStabilized Copper Market

$2.00

$2.50

$3.00

$3.50

$4.00

Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15 Apr‐15 May‐15 Jun‐15

Copper PriceUS$ Copper

C$ Copper• Copper prices have rebounded

since hitting a low of US$2.45 in January

• C$ price of copper is higher today than a year ago due to weak Canadian dollar

• Poor operating performance of copper mines has maintained a balanced copper market

• In excess of 400,000 tonnes of ‘lost concentrate’ already in 2015

• Lack of new copper mines in next 18‐24 months support a deficit copper market and higher pricing

$0.75

$0.78

$0.81

$0.84

$0.87

$0.90

Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15 Apr‐15 May‐15 Jun‐15

Canadian DollarC$/US$

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Looking Forward

Source: IRESS data, Lion Analyst

Stabilized Copper Market – Are we at the Bottom?

“The market continues to hit new lows, and the magnitude of the correction in miners since 2011 has now become the longest in the last 50 years.”

Source: IRESS data, Lion Analyst

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Looking ForwardSolid Financial Position

Balance Sheet:• Significant waste stripping in Q3

and Q4 impacted costs and cash position

• Working capital at end of Q1 was $76 million – up 12% from Q4 14

• Long‐term debt increases primarily due to C$ weakness,

• Repaid $26 million of debt in 2014

Income / Cash Flow:• Generated $52 million of

operating profit and $51 million of cash flow from operations in 2014

• Q1 operating profit of $2.3 million• Higher copper grades and lower

costs will contribute to improved earnings going forward

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Aley (Nb)84 million tonne reserve @ 0.50% Nb2O5Expected to produce 9 million kgs of Nb per year over its 24 year mine life

New Prosperity (Cu‐Au)13.3 million ounces of gold, 5.3 billion pounds of copper

Florence (Cu)In‐situ copper recovery project340 million ton reserve @ 0.358% Cu 25 Year Mine life

Looking ForwardQuality Projects

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Florence Copper Project

Location: Central Arizona near the community of Florence

Ownership: 100%

Mineral Reserves: 340 million tons grading 0.358% TCu (at a 0.05% total copper cutoff) containing 2.42 billion pounds of copper

Mine Type: In‐situ copper recovery

Mine Life: 25 years

A Near Term, Low Cost Copper Producer

Project HighlightsAll major power, transportation, road and rail infrastructure in place

Majority of Phase 1 operating permits in place, amending existing commercial operating permits for near term production

Over $100 million spent on project by former owners Conoco, Magma and BHP Copper Inc.

Prefeasibility and successful pilot test confirmed project safety and economics by BHP Copper in 1998

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Aley Niobium Project

Location: Northern British Columbia

Ownership: 100%

Mine Type: Open Pit, 10,000 tpd mill throughput

Mine Life: 24 years

Accretive Development Opportunity

Project Highlights

Proven and probable reserves of 84 million tonnes grading 0.50% Nb2O5 announced in September 2014

Pre‐tax NPV of C$860 million at an 8% discount rate

Pre‐tax internal rate of return of 17% with a 5.5 year payback

Anticipated operating margin of US$21/kg of niobium (Nb)

Average annual production of 9 million kilograms Nb in the form of FeNb

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Thank you.Questions?

Taseko 2015 Annual General MeetingJune 11, 2015

Building Value Through Operating and Developing Major ... · $2.00 $2.50 $3.00 $3.50 $4.00 Oct‐14...

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