Taseko Mines Limited is a mid-tier copper producer located in British Columbia, Canada. It operates Gibraltar Mine, the second largest open-pit copper mine in Canada, and is in the planning stages for several other mines including the Prosperity Mine, Harmony, and Aley. All production is sold at non-hedged market based prices. The market capitalization is currently roughly 740 million dollars.

Company history In 1991, the company acquired the Prosperity project, with subsequent acquisitions of the Gibraltar Mine from Boliden AB in 1999, and Harmony in 2002. Gibraltar was reopened in 2004, due to high copper prices. Aley was acquired in 2007.

Proposed projects Prosperity Mine The Prosperity Mine property spans 85 square kilometres in south central British Columbia. A large copper and gold mineralization has been defined on the site, containing approximately 5.3 billion pounds of copper and 13.3 million ounces of gold. The feasibility study for the mine was completed on September 25, 2007, and the environmental review process began in July 2008.

Reserves The operation is planned as a large open-pit copper and gold mine, with projected annual production of 108 million pounds of copper and 247,000 ounces of gold over a 20-year mine life, at an estimated cost of approximately $800 million.

In 2009, proven reserves for the mine were estimated at 481 million tonnes, grading 0.46 grams per tonne of gold and 0.26 percent copper. Probable reserves were estimated at 350 million tonnes, grading 0.35 grams per tonne of gold and 0.18 percent copper, based on a $5.50 net smelter return cut-off.Stockwatch news release November 2, 2009, cited in BC MINFILE Record summary No 092O 041 PROSPERITY, FISH LAKE, BB, VICCAL, ALBERT, RENNER, NEW PROSPERITY

Timeline Taseko Mines acquired the property in 1991. The feasibility study, completed on September 25, 2007, outlined a processing rate of 70,000 tonnes per day over a 20-year mine life, and the environmental assessment process began in July 2008. In November 2010, the initial open-pit proposal was rejected by the Canadian Environmental Assessment Agency review board, a decision supported by Environment Minister Jim Prentice and the minority Tory government. The following year, in November 2011, Taseko President Russell Hallbauer wrote a letter to Environment Minister Peter Kent suggesting that the proposal had been rejected for "spiritual" rather than environmental reasons. The mine was rejected a second time in 2014 by the Harper government, again on environmental grounds. In January 2017, there was an attempt to revive the project, though it lacked support from the local First Nation. Harmony Mine The Harmony property is located on Graham Island, the largest island of the Haida Gwaii archipelago within the Queen Charlotte Islands, off the coast of British Columbia. The property contains low-grade gold mineralization that would only be profitable to mine at historically high gold prices. As of September 2004, Taseko had yet to explore the property and valued it at a nominal $1 on its balance sheet, classifying it as an exploration asset.Teseko Mines Limited Annual report p45 The latest engineering study indicated reserves of 64 million tonnes grading 1.52 grams per tonne, representing in-place resources of approximately 3 million ounces of gold. No known projects are currently pending for the site.

The property was discovered in the 1970s and acquired by Taseko in October 2001 for $2.23 million along with preferred stock. On September 30, 2004, its value was written down to a nominal $1.

Aley The Aley asset contains niobium, a rare metal used in producing special steel alloys valued for their corrosion resistance. Currently, only two mines in the world produce this rare metal,Niobium and its spot price has risen significantly over the past five years, from as low as $6.70 per pound in 2004 to approximately $24.00 currently. The property is located near the shore of a lake, about 30 kilometres from the camp, and is classified as an exploration asset.

A feasibility study has not been completed for the site thus far, though resource estimates suggest 330 to 500 million pounds of niobium, of which around 65 percent may be recoverable. As no feasibility study has been completed, cost figures are not yet available.

The property was discovered by Cominco in the 1980s. Taseko acquired it in June 2007 for $1.5 million in cash plus approximately 894,730 common shares, and exploration of the property began in 2008.

Financial information Taseko's shares are listed on the NYSE under the ticker symbol "TGB." The company also holds 7.318 million shares of Continental Mining, a Chinese mining company. + Assets March 31, 2008 September 30, 2007 June 2007 September 2006 Current Assets Cash and equivalents 66,416 37,636 44,306 89,408Restricted Cash - 4,400 4,400 - Marketable Securities and investments 14,850 18,542 - - Accounts Receivable 12,209 12,021 16,203 9,342 Income Taxes Receivable 6,344 - - - Advances to Related party - 807 - - Inventory 22,724 18,058 12,744 24,218 Prepaid expenses 839 1,069 2,641 1,221 Current portion of promissory note 723 2,086 1,238 2,157 124,105 94,619 97,907 149,447 Restricted Cash - 4,400 4,400 - Reclamation Deposits 35,468 33,396 32,653 32,004Promissory Note 73,058 72,350 72,128 71,009 Property, plant and equipment 221,821 176,898 136,843 43,445 458,852 337,263 339,531 297,461

+ Liabilities March 31, 2008 September 30, 2007 June 2007 September 2006 Current Liabilities Accounts payable and accrued liabilities 27,032 30,435 20,646 21,961 Advances from related party 118 - - - Current portion of deferred revenue 175 175 1,095 1,225 Current portion of royalty obligation 723 2,086 1,238 2,157 Income taxes payable - 6,573 13,166 3,985 Current portion of future income taxes - 807 - - 29,976 44,589 35,225 47,862 Income taxes 25,478 24,645 22,523 21,058 Royalty obligation 62,590 63,330 63,825 64,632 Deferred revenue 963 1,050 1,094 1,225 Convertible debt 43,383 41,008 42,173 42,775Site closure and reclamation cost 14,334 17,441 19,864 18,975Future income taxes 35,671 21,540 5,591 - 212,395 213,603 190,295 196,527

References

Sources

Prosperity Cost 100 million equipment purchase Phase III expansion 2007 Annual Report detailing all properties owned Market Capitalization CFO resignation

External links