Taseko Mines Ltd.
Taseko Mines Ltd.: TASEKO ANNOUNCES YEAR END & Q4 RESULTS
Taseko Mines Limited. / Final Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- TASEKO ANNOUNCES YEAR END & Q4 RESULTS December 12, 2007, Vancouver, BC – Taseko Mines Limited (TSX: TKO; AMEX: TGB) is pleased to announce its financial results. For the year ended September 30, 2007, Taseko had an operating profit of $105.7 million, earnings before income tax of $87.9 million and earnings after tax of $48.3 million or $0.37 per share ($0.36 per share fully diluted). Cash flow from operating activities increased by 55% and earnings by 47% over that achieved in 2006, as shown in the table below:Year Ended Year Ended September 30, 2007(1) September 30, 2006(1) Revenue $218.4 million $161.9 million Copper(2) $199.9 million $140.3 million Molybdenum $18.6 million $21.6 million Cash Flow(3) $86.0 million $55.4 million Cash Flow per Share (basic) $0.67 $0.49 Operating profit(4) $105.7 million $54.9 million Earnings before income tax $87.9 million $39.0 million Earnings after income tax $48.3 million $32.9 million Earnings per share (basic) $0.37 $0.29(1)All dollar amounts are stated in Canadian currency unless otherwise indicated. (2)Copper revenue in 2007 includes proceeds from sales of copper concentrate, copper cathode and silver concentrate. (3)Cash flow and cash flow per share are numbers used by the Company to assess its performance. They are not terms recognized under generally accepted accounting principles. Cash flow is defined as cash flow from operations including net change in working capital balances and cash flow per share is the same measure divided by the number of common shares outstanding during the period. (4)Operating profit comprises of revenues less cost of sales and depletion, depreciation and amortization. - The average realized price of copper for the year was US$3.30 per pound and US$28.26 per pound of molybdenum. - Copper in concentrate sales for the year were 53.4 million pounds, copper in cathode sales were 2.1 million pounds. - Molybdenum in concentrate sales during the year were 0.6 million pounds. - Copper in concentrate inventory at September 30, 2007 was 4.64 million pounds, and copper in cathode inventory was 0.33 million pounds. - Molybdenum in concentrate inventory at September 30, 2007 was 18,100 pounds. Fiscal 2007 Production The following table is a summary of the operating statistics for fiscal 2007 compared to fiscal 2006.Fiscal 2007 Fiscal 2006 Total tons mined (millions)(1) 35.4 38.4 Tons of ore milled (millions) 9.5 10.9 Stripping ratio 2.6 2.4 Copper grade (%) 0.328 0.285 Molybdenum grade (%Mo) 0.011 0.010 Copper recovery (%) 77.5 79.1 Molybdenum recovery (%) 29.6 41.2 Copper production (millions lb)(2) 51.8 49.1 Molybdenum production (thousands lb) 580 821 Copper production costs, net of by product credits(3), per lb of copper US$1.03 US$1.25 Off property costs for transport, treatment (smelting & refining) & sales per lb of copper US$0.35 US$0.25 Total cash costs of production per lb of copper US$1.38 US$1.50(1)Total tons mined includes sulphide ore, oxide ore, low grade stockpile material, overburden, and waste rock which were moved from within pit limit to outside pit limit during the period. (2)2007 copper production included 49.4 million pounds in concentrate and 2.4 million pounds in cathode. (3)The by-product credit is based on pounds of molybdenum and ounces of silver sold. Fourth Quarter Sales and Inventory - Copper in concentrate sales for the quarter were 11.7 million pounds of copper, an increase from the 5.0 million pounds of copper sold during the same quarter in fiscal 2006. - Copper in cathode sales were 1.5 million pounds compared to none in the same quarter of fiscal 2006. - Molybdenum in concentrate sales in the quarter were 0.16 million pounds, a decrease from the 0.17 million pounds sold in the same quarter in fiscal 2006. - The average price realized for sales of copper in the quarter was US$3.63 per pound and for sales of molybdenum in the quarter was US$28.88 per pound. Fourth Quarter Production The following table is a summary of the operating statistics for the fourth quarter of fiscal 2007 compared to the same quarter in fiscal 2006.Q4 2007 Q4 2006 Ore + Waste mined (millions tons) 10.1 9.6 Ore milled (millions tons) 2.6 2.8 Stripping ratio 2.9 2.3 Copper grade (%) 0.391 0.293 Molybdenum grade (%Mo) 0.012 0.009 Copper recovery (%) 78.2 79.3 Molybdenum recovery (%) 22.5 40.3 Copper production (millions lb) 16.81 12.7 Molybdenum production (thousands lb) 148 197 Copper production costs, net of by product credits, per lb of copper(2) US$0.82 US$1.38 Off Property Costs for transport, treatment (smelting & refining) & sales per lb of copper US$0.39 US($1.35)(3) Total cash costs of production per lb of copper US$1.21 US$0.03(1)2007 copper production includes 15.8 million pounds in concentrate and 1.0 million pounds in cathode. (2)The by-product credit is based on pounds of molybdenum and ounces of silver sold. (3)Off property costs in Q4 2006 included proceeds from an arbitration proceeding with Glencore Ltd., resulting in a credit for off property costs and a reduction to total cash costs. Tons mined were higher in the fourth quarter of fiscal 2007 compared to fiscal 2006. Ore milled was slightly lower in Q4 2007 compared to the same quarter of the prior year as a result of low mill availability in July; however, mill availability was over 90% for August and September. Copper recovery was slightly lower in Q4 2007 compared with the same quarter in fiscal 2006 as the flotation circuit was changed over to the new high volume tank cells during the early part of the quarter. Recoveries in the second half of the quarter were over 80% as the new circuit came on-line. Molybdenum production was lower than fiscal 2006 as a result of mechanical issues in the molybdenum circuit. These issues have now been addressed and molybdenum production is back in line with expectations. Copper in concentrate production during the quarter was 15.8 million pounds of copper, compared to 12.7 million pounds produced in the last quarter of fiscal 2006. Copper in cathode production during the quarter was 1.0 million pounds, compared to none in the same quarter of fiscal 2006. Molybdenum in concentrate production in the quarter was 0.15 million pounds, a 25% decrease from 0.20 million pounds in the same quarter of fiscal 2006. Costs per pound of copper produced in Q4 2007 were lower than Q4 2006 due to increased metal production. This was partially offset by increased costs for tires, fuel, and contracted maintenance labour. Quarter to Quarter Production in Fiscal 2007 Copper production continued to improve from Q1 2007 to Q4 2007 as indicated in the table below. Metals produced (millions lb) Q1 Q2 Q3 Q4 Copper in Concentrate 10.6 11.2 11.8 15.8 Cathode 0 0.6 0.8 1.0 Total Copper 10.6 11.8 12.6 16.8 Molybdenum in Concentrate 0.12 0.16 0.15 0.15 Metal production in the fourth quarter of fiscal 2007 increased by 44% over the average of the three previous quarters of the year, as a result of operational improvement, implementation of new technologies and higher copper grades. Mill Expansion Project All components for the SAG mill have been installed and testing of the individual systems began in mid November. Commissioning of the SAG mill is on schedule to begin in the middle of December 2007. The Phase One expansion also requires the conversion of the three rod mills to ball mills which is planned to occur during January and February 2008. Ramp up to the full 46,000 tpd rate will take place over the following six months. The Phase Two expansion consists of modernizing and increasing the capacity of the regrind, cleaner flotation, and concentrate circuits, installing a two stage tailings pumping system, and adding a pebble crusher to the SAG mill circuit. Phase Two is designed to increase concentrator capacity from 46,000 to 55,000 tpd. Work is proceeding on schedule for completion by late 2008. For further details on Taseko Mines Limited, please visit the Company’s website at www.tasekomines.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114. Russell Hallbauer President and CEO To view this news release in its entirety please click on the link below or copy and paste it into your web browser http://www.tasekomines.com/tko/NewsReleases.asp?ReportID=277167 No regulatory authority has approved or disapproved the information contained in this news release. Forward Looking Statements This release includes certain statements that may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained gold, 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 reserves or 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 20-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com. The Prosperity Feasibility Study was prepared to quantify the Prosperity project's capital and operating cost parameters and to determine the project's likelihood of feasibility and optimal production rate. The capital and operating cost estimates, which were used have been developed based on detailed capital cost to production level relationships. The following are the principal risk factors and uncertainties which, in management's opinion, are likely to most directly affect the ultimate feasibility of the Prosperity project. The mineralized material at the Prosperity project is currently classified as a measured and indicated resources, and a portion of it qualifies under Canadian mining disclosure standards as a proven and probable reserve, but readers are cautioned that no part of the Prosperity project’s mineralization is yet considered to be a reserve under US mining standards as all necessary mining permits would be required in order to classify the project’s mineralized material as an economically exploitable reserve. Although final feasibility work has been done to confirm the mine design, mining methods and processing methods assumed in the Feasibility Study, construction and operation of the mine and processing facilities depend on securing environmental and other permits on a timely basis. Additional permits, when required, have yet to be applied for and there can be no assurance that required permits can be secured or secured on a timely basis. Although costs, including design, procurement, construction and on-going operating costs and metal recoveries have been established at a level of detail required for a feasibility study, these could be materially different from those contained in the Feasibility Study. There can be no assurance that these infrastructure facilities can be developed on a timely and cost-effective basis. Energy risks include the potential for significant increases in the cost of fuel and electricity. The Feasibility Study assumes specified, long-term prices levels for gold and copper. The prices of these metals have historically been volatile, and the Company has no control of or influence on the prices, which are determined in international markets. There can be no assurance that the price of gold and copper will continue at current levels or that these prices will not decline below the prices assumed in the Feasibility Study. Prices for gold and copper have been below the price ranges assumed in Feasibility Study at times during the past ten years, and for extended periods of time. The project will require major financing, probably a combination of debt and equity financing. Although interest rates are at historically low levels, there can be no assurance that debt and/or equity financing will be available on acceptable terms. Other general risks include those ordinary to very large construction projects, including the general uncertainties inherent in engineering and construction cost, the need to comply with generally increasing environmental obligations, and accommodation of local and community concerns. Contact: Brian Bergot 1020 · 800 W Pender St. Vancouver BC Canada V6C 2V6 Tel 604 684 · 6365 Fax 604 684 · 8092 Toll Free 1 800 667 · 2114 http://www.tasekomines.com 14.12.2007 Financial News transmitted by DGAP ----------------------------------------------------------------------
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