Taseko Mines Limited (TGB) 5 Nov 212021 Q3 Earnings call transcript

Good morning. My name is Kelsey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Taseko Mines' Third Quarter Earnings Production Results 2021 Conference Call. [Operator Instructions] Mr. Brian Bergot, you may begin your conference.

Kelsey. you, Thank thank Conference and joining Third Taseko's Welcome, you XXXX Call. Quarter everyone, for release and on The issued our announcing news financial market tasekomines.com. and at yesterday operational close is website available our after was results

On the Taseko's CEO, VP Hamming; McDonald; Stuart of Bryce me Operations, Chief Officer, our President Financial and Taseko's and today call with is Senior Richard Tremblay.

questions remind and before by This its management, cause like uncertainties differ your to the to remarks answers information. get comments I materially that outcome our opening our actual contain outcome. into we that information, As nature, usual, to listeners forward-looking is may will to risks from stated would by the subject and

read and like note quarter out particular the our will third information risk related as I the accompanies would cautionary also to during the uncertainties, further For these to risks that MD&A on release our call. company. factors and use the measures point as news to various well non-GAAP we you I that encourage

I call and find for and remarks, opening now remarks. the in news related the can these question-and-answer measures the Stuart reconciliations After You will a session. for lines turn to release. open investors over phone analysts to we regarding will his explanations

the results off, Thanks, start the from with Okay. operating to reviewing on we're today and Brian. quarter we the results yesterday. joining we'll say mine. you And for where financial our everyone. Thank very call be third Good us morning, webcast and the I'll released Gibraltar happy that

XX% expected the X below record resulted we year, the high strong quarters copper As for of the has first with this In EBITDA and of ongoing on higher XX% also a per combination recoveries. than million quarter. of revenues in pounds, traded moly to production But mainly of about which results second mined prices as so head by as nearly throughput QX, high last and year. increased benefit had Copper in a in the plan everything earnings. production price our in copper grades XXX,XXX also price production average driven pound, the is higher credit. the than that byproduct but into grades fell consistently was a environment and the the Quarterly quarter, range and We price wasn't XX which right reflected place. better and $X.XX average of grades, higher helps copper improved pounds full

spend as in similar $X.XX resulted higher Our but site in our previous previous costs the quarter. from to production on X about CX unit very metal operating fell total decline the $X was steep a operating quarters, pound to cost the in a

was adjusted operations our led I its than remind these people flow. of from reports to best XX actually which share years. at also and of is always, earnings last Taseko these mine's million. $XX EBITDA that Cash XX% strong the favorable All And as flows XX% quarter cash $XX million, only factors the over with higher of numbers,

levels, and and again, copper into the of with Pollyanna quarter in in have we expect line production grade previous QX, ore continue production remaining results we XXX fourth the operational in continue strong approximately million and quarter the similar, above be higher year, with expect our for We pounds Copper to prices to should financial access third Pit. to the total guidance.

and become from will Gibraltar away ore transition the Pollyanna Pit the in ore. we'll year, next to Pit primary source of new mining the ahead Looking

-- is right to the production similar to closely date forecast small related where year. will potential Gibraltar we're While in has see input in been the be that so, to inflationary expectation increase to processed upside benefits which the at area trending watching is One formal Gibraltar. costs we're about upside a the Based next last potential we're that production copper costs, or The XXXX makes on than Gibraltar in our pit past up current seen significant some starting pressure. now giving amount most yet, ore terms of XXXX recent average. spoken of XX% year-to-date our pit. and to is in continue diesel, approximately guidance upwards production. price a to current an site year month prices current not in been see of the XX% months We've of higher the that's We've we initial softer that as ore about

escalation and we're note price next At monitor terms. of area is to a long-term long-term $XXX contract. ton risk analyst in very which by at few contract current to that believe where market shift dollar of a the we're year. Another is are We'll items pound. in a [indiscernible] but based price freight freight ocean cost costs has Gibraltar, on for the are year early closely, that in last the Canadian copper forecast. for in increase cents that, rates, pound thinking levels from about it's dramatic, per at reflected overall, current a important million The record expires XXX copper reserve keep sentiment continue manageable seeing that recent been protected of when been these over we've When mind market long-term cost

reserve potential million The shift price portion price. and into recent of copper there's to updating XX-year life. considering outlook, a resources an current that the a reserve, has of now of to tons top extend our reserves mine the at on higher additional the in bring estimate Given we're the XXX mine

months, that work remains asset. valuable in very long-life that doing work, a Gibraltar clear but it's So me to we'll engineering coming the be that

this Florence we for expenditures the plant. now. key a to contract major quarter increased awarded Capital SX/EW as Turning project equipment the processing for at

items year. and world. draft We delivery time the the helps are lead permit other of the schedule supply want reduce of While issues continuing EPA, us advance projects in secured we're to have process, issued permitting around to minimize still to site their to and the the waiting by of chain have components other on for the next to and risk impacting we UIC key Procurement confidence operations be impact construction we're program. aspects delays, any which long

expect permit be the is followed We soon very us, comment for sent be investors begin the initial we hearing. year. I'm to The in public but and soon construction that it to frustrating will review, and public time the for period permit the by us certainly an the for draft additional well, will sure as remain in for issued confident waiting new the

take now the in process. not a is the necessary this we've process control EPA we to complete thorough the engineering time about will As a have Detailed very past, over, talked and certainly position at Florence to be approximately the of is start And project we'll we in XX% the execute a as the sheet balance construction. have well. complete, good and for

bonds Our even and We and on cash minute. coupon our third quarter credit in that a Bryce CapEx more added quarter. again about semiannual will Florence with the $XX in balance payment grew facility, talk a reflected the this revolving million

first year our that program copper [indiscernible]. liquidity at So price about forget, of quarter next have through available place don't brings of protection end. the half we CAD in million And a XXX

that Taseko from Florence. cash wrap to to copper of is and uniquely flow a project fantastic Gibraltar continue solid I a environmentally-friendly So base up believe positioned with low-cost here, at

high-quality becoming line to projects they're CFO, disciplined and in we'll projects that, We're in like in now with questions. environment for the our remain great increasingly valuable, our pass today. approach and to call mines new horizon, of copper we the and With on the I'll continue to Bryce, when safety environmental especially located the are over ours. jurisdictions, a additional capital scarcity before some and spending operations, comments performance. up Bryce? And move existing for

better are pleased than would second brief the were that first results speak good financial for in our that half pretty keep results guidance. this with the the try of year expectation We've that relatively and half, good the morning, guidance year Thanks, and quarter as we themselves. really extremely this Stuart, I'll be this and financial this given to everyone. line quarter significantly

$X.XX of million $XX tax. sales pound, coupled in million of prevailing contributed adjusted CX also $XX and at did earnings With based $XX taxes Copper million of per net $XXX share. the adjusted deferred of the record per $X.XX million mineral and the average costs And at is sales. cash for to quarter or EBITDA we $X volumes, pound realize record revenue of million with on XX per $X.XX of for in copper taxes quarterly of million pounds Taseko price our figure EPS strong only an prices as adjusted this were quarter

was after adjusted earnings really So cash $X.XX per share. taxes

October. credit are X.X-year very facility closed tenure pleased National million $XX to with a for Bank early revolving We in have

the at in while pursuit As allow we of need structure would many Bank strategic credit time, one with closely them. sources revolving works we some on and alternative to meet financing facility Florence providing been of worked and flexibility know, National our complement a for should the enough objectives covenants capital to our plans us team that has also you

with at drawn to from than of our restricted position no sufficient have Florence's coupled Gibraltar cash credit $XXX prices. small to it on cash. not possibly flows current have to us liquidity costs ending [RCF], some construction and plans We fund cash and copper other immediate future at This million -- free letters some give up

$XX million in in at investment that see expenditures QX being also You'll increasing Florence capitalized. with began

make on schedule capital $X these incurred for protect the detailed lead about at the pressures. to into million to we plant. and for $X In first XX% the our for procuring $XX addition site supply and chain engineering outstanding deposits against SX/EW Florence which of make now will of million commitments and and is payments September, construction equipment lead progress for to commitments million inflationary spend, continue we design, capital complete With orders end further QX order

also congestion than the increased to as to £X up months due in sales less some pounds was just of port summer concentrate Our late million production. inventory shy -- QX in

the be next cost $X into shareholders. assist We any significant do demand provides and we levels if us so supported term, volatility when while to our and near us by to down inventory keeping it's will mid of look come by those or in flow will earnings which face for the effective for price further also our we Cash will or bolster cash. which year QX upside hedging year, expect further add end puts and callers the to revenue to a floor program,

to we quarter grow the up. to ramping the decrease at and any debt Thank balance turn questions. back it spend now even you. Florence I'll for our with So net into fourth Kelsey, expect cash operator,

does question come first from from Ed Your Brucker Instructions] Barclays. [Operator

kind be comment how and there long So entails another had, the that bump the I permitting the worry could public be? that, that EPA any period what could then process? explain and first you that will of of is with just decision, one And speed the in kind

is And here. Tremblay Richard Yes. this

So the the XX-day that what days, the any There's a and days, need EPA of And permit. or XX made a works a the their public to and hearing XX if roughly they that by permit participants to changes will on informed of also permit the public speak. hearing anyone any held be anyone And takes the position those the -- for And comment it's on -- draft with into those make reviews hearing period, opportunity aspects. permits voice draft at essentially, can comment comments. provide their will we're it for is that end XX into any -- updates speak to be can basically comments comments is to received, the period. review public draft or based the XX support ask days. virtual and permit decides EPA issues the days the available the be during way get all then and comments envisioned anyone And virtual in at to not or that's public EPA the on

a get for the it. situ Got effected needed geological remind you in confident quite what like specifically? if it's are scale? do factors perspective I then copper And be kind decision, sounds then to progressing, how mining EPA from us the -- to work used in know uranium of it's geography And it's you going just are you bit, perspective. a which can that for for

Stuart here. speaking It's

situ is somewhat for big have. required is and have have we at -- that's copper I and what in body, Florence mining. a think fractured us deposit, that going highly the a thing it's we unique And ore is for for it's we

scale and quite including it's unique. ultimately, XXXX lab confident that we're in test with And built highly and over said, I in situation work we proven work for that very works forward facility. moving in operated X years, X us a It's As really facility to test the we've that the last done the commercial then years the unique that with has and really copper. it

about It's excited cost. mentioned. mining, It's of friendly low So environmentally we're I as pretty it. a very way

we're And years and growth us. here provide optimistic for so coming to the that the going it's

then or And to not the but comment period, something think, I it's in it. negatively base I Got EPA public case, sense if get just don't back a comes wrong decision plan what's contingency the goes the Look deleverage to point? the Yellowhead look that to use there? at at Do at plan? projects even projects like run Or opportunity you just other improvements Gibraltar? or maybe wanted the

I comment I terms described get in state of ago, going there the add Florence. -- we're opposition in period and that already mean, public ahead really very which year the would that that on one comment went going we've not significant permitted. comment optimistic process, very and a any to period smoothly the mean, for is a at public we're issues through Richard raised. I or -- thinking We're Well, weren't I that lens been point. guess, on this it's permitting

permitting optimistic we're to next construction think and permitted get So the going start process. We we're year. about

talked script have do coming the other right. to a too. expand which the You're of course, And life, the We've We potential about minute got Gibraltar call pipeline. Yellowhead you in in projects the mine on on -- future, ago. in the at

going projects to next the confident Florence other for in mine Taseko. be we're So that pipeline, we've is really but got the

$XXX Or it. top million me, is was on makes just included excuse that could that one sneak spend, if $XX And that think the this on quick, in I in. this spent Got sense. then real million? this Florence you which of It million? I But quarter, total -- $XXX cleanup that that or project is year

Yes.

We is $XX spend. that have there in million, site

not and to the So the orders that's million that $X which engineering is $XX paid included be. quarter both CapEx, site spend, but a for is $X million about the been million has detailed lead in would

next [Operator from TD question Craig Bank. Instructions] Hutchison Your comes from

question Just Florence. a follow-up on

spend Like you to spend a waiting final maybe Florence, of mention terms you're between Just you kind going guys some the did QX. items of and you here plan sense to this permits, as are of long breakdown the any more in guys at engineering. capital in quarter lead detailed

next again on potentially of We in is $XX in an are commitment inflation. hedge respect we about are long can we've But I are I will we quarters. as Craig, committed looking roughly at a described, Yes. one. some time protect essentially, to at think will, our today, commitments ourselves towards million to at where may take of that published that shot over around -- mean, additional few the items. That or some end we for -- items September. triple risk million. And spend lead today, sitting $XX Bryce here we

similar that, kind the a year prepare may those or rates, a next X how of that's see we're about of general spend kind activities. ramp-up of we we are months site the construction But thinking Beyond you early of in will it. little continue framework bit -- for X as at

of And have like get periods? the public sort commentary in the they EPA is XX-day to lines of time Or need? of mandatory there back terms for take period? all do of Are sort to set any the XX-, they post they the time kind flexibility

If the at something we're the with state out line of sure. lot but we've magnitude end. depend the They the it the if which -- that on comments And it no that them. will talked smoothly. flexibility, it's process, of follows and time time fairly no have There's or comment mandated public about line believe for period that, certainly hopeful we go of will, review come that should a

we're So it. way that's the thinking about

here? Any of Or for similar guidance And last spending levels? we've see the quarters Yes. it of couple being we give QX QX? seen think here. kind to Do to continues Gibraltar, maybe at CapEx the come decline down you you can just

here. Craig, Yes, Richard

components QX where in QX. between a capitalized stripping, be were we in from down CapEx general investment bit actually coming will So capitalized as

you going And levels obviously, sort that assume the be of but provided similar of on little a probably guidance, this Okay. we production next haven't, to did to be higher ore, because year. reserve Can you similar year, softer levels? will state throughput's grades will to bit the be

Yes.

definitely throughput. I mean, So the we're upside in -- not some there's

today, mill, we're looks throughput going I of think very and pretty specific the and not a we that early days, to we've -- of the generally good. guidance -- be going that color through sit had As it we're process we greater quarter. But on next ore more to just initial I similar give and in kind it's it's think can we give today. give guidance But here, certainly production production

Great to cash see free the flow.

no further at There questions this time. are

proceed. may You please

Okay. our Thanks, dialing year-end Bye to you in year-end and we everyone, now. -- talk at call at again will in, for February.

gentlemen, this for We today. very and ask you that call your conference Ladies and much thank for concludes you lines. please participating disconnect your