Taseko Mines (TKO) BofA Securities Leveraged Finance Conference 2025 summary

Recent developments and project updates

• Florence Copper construction completed on time and within 2% of budget; operations have started with first cathode expected in January and ramp-up to full 85 million lbs capacity by 2027.

• Gibraltar mine experienced a challenging first half due to weather and stockpiled material processing but returned to normal run rates in the second half; 2024 expected to see production between 120–130 million lbs.

• Yellowhead project permitting has begun, with updated economic studies and plans to advance engineering and fieldwork for a final investment decision in the coming years.

• New Prosperity asset deal completed in June, with potential for further value realization.

Florence Copper project specifics

• Utilizes in-situ recovery mining, offering lower costs, reduced environmental impact, and lower water and energy use compared to traditional mining.

• Initial ramp-up targets 30–40 million lbs in 2024, with well field expansion from 110 to 230 wells to reach full capacity by 2027.

• Operating profit expected by Q2 2024, with free cash flow following closely at current copper prices; working capital needs estimated at $10–15 million.

• All-in costs projected at $2/lb due to elevated sulfuric acid prices, but margins remain strong with copper above $5/lb.

Strategic partnerships and financing

• Mitsui likely to exercise its call option, converting its stream and $50 million investment into a 10% stake in Florence, with offtake rights for U.S. customers.

• Mitsui stream included in cost structure for initial years, expiring in 2028.

• Recent equity raise of 42 million shares at $4/share used to repay revolver, boosting pro forma liquidity to over CAD 300 million.