TGB - Earnings call transcript Q2 2021

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Operator

Good morning. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Taseko Mines second quarter earnings and production results conference call. [Operator Instructions]. Taseko, you may begin your conference.

Brian Bergot

Michelle. you, Thank Bergot, joining Brian everyone, thank and This Second and Quarter for Taseko's XXXX you is welcome, Conference Call. announcing market available The issued tasekomines.com. release our operational and news results yesterday after our close on is and website at financial was call Operations, on Taseko's is Richard Taseko's Tremblay. the Stuart and our President Bryce Financial Officer, With Hamming; CEO, Senior McDonald; today me and Chief VP of

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

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

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

Stuart McDonald

you, Russ' following the to to the webcast. it have since committed last closely be we've does Yes, President, June. But Brian, Operations. role Thanks retirement to I bit worked I second Also to certainly Vice and minute. I'll welcome in he's a new has who introduce call to And himself have as years in to you project ensure the today. Russ morning, General Manager the for been not his over be promoted the became worked in here. our X X years. years, that transition he's aspects expanded all left Thank and fortunate Okay. project. to void the of him including seamless President having Mine. Florence everyone. of wanted now in very for filling last been we last including our particularly the with years, X feel role today, to responsible But good Taseko, earnings to pipeline, all by a X not company for the Senior also of Gibraltar with I'm Tremblay, quarter joining and remarks Richard odd excited certainly for a been And our X let years

transition well. of So the fully expect business side seamless on the operations as a we

$X The last Turning per prices, story back very environment to that's and pulled for back the miners. And around. attractive in second quarter quarter price very copper China a strong slightly copper a this now, $X.XX another pound. was averaging in LME the range, $X.XX still the a appear we XXXX, weeks, price price It's was and recent it the in different above was than but has time just to with more to now. for time be

electrification recovery economic with spending, global from to huge a transition We underway economies. stimulus demand have coming and new green

order next they now need are personally we the to next we're prices above remain build going copper to need to decade. capacity in a analysts metals I miners the demand for that the $X that's where So market that think incentivize and growing meet among seeing the average years. to realization to over few in And

investment decisions social even with see the and political, new producing forefront. environmental of tax delayed a challenging about the X Peru, past, of Chile at As mine now and in we projects is the are risky uncertainty. because in copper a political risks countries, scale of And the we've endeavor top and many developing talked risks required and in of jurisdictions

So positioned the with very the United and we States, projects future. believe in well we're portfolio our for of located Canada copper

production operating in the throughput QX even as significantly Earnings and mine had an pounds are expect Pit. balance expecting to we we costs, copper GBP with slower the mine initial quarter. cash Gibraltar expected get Adjusted quarter and for That's of financial a X% or like guidance and total over beginning performance second around copper lower XX% We the the second million looks was row. of grade the quarter, in to in what half, half this of which new from with increase a The was and begin the But ore we recoveries, at into within to the accessed part at performance Our we to almost also quarters communicated of XX% million Pit in in flows we all operations. production operations copper. over Gibraltar in the will our the mining higher had higher latter as start higher lead generally market, in XXX in We're the than And plus year QX. XXX% Pollyanna rest to give. prior of improved and cash $XX XX just million, it increase results typical increase the XXXX, higher And over flow EBITDA will $XX and to of million minus that earnings X unit drove half is come quarter, ore seen was of the line see range along in the improved of grade also XX% expectations. over and was the of be improved XXXX QX the as production the least produced we from grades deeper from that the copper Because of year. first generated lower for of the up prior a quarter. the year. production million last steady $XX

summer. seen any our now haven't we near To activity mine. be situation the fire of you of wildfire Some may Gibraltar B.C. date, aware in right this

some by interrupted. in the rail rail concentrate south capacity add of flow time. Although But to was trucking lost port again traffic to of temporarily fires the of our moving and is rail have the offset disrupted to service able the to us been we've and Vancouver

see this any impact point, we QX at So our on don't significant sales volumes.

ahead, were we're up interesting geophysical at Looking survey. that follow planning under exploration drill Gibraltar program anomalies recent to an on some identified

years on to life drilling. that the to be months. reserve add We have with of So and in currently we additional remaining, XX expect expect able to hear that more to coming

and USD remainder copper related talk more of impact planning minute. we're maintain to of on, for technology can over key Florence, and about to time By these long items and days a that detailed construction number later productivity the roughly Essex in schedule we're this the XX do that point million now, progressed production. a the initiatives expect CapEx plant. where ready and our those making for ensure don't also XXXX components have our lead first early that year. financial can has commitments We exciting of to mine, CW We're in now to At and the coming work order the advance we can we underway continuing at Richard engineering,

In time. there take its X% important internal Harmony and will forward a in that's period coming we They'll will But comment we'll project, of to be is for you done draft have keeping liked, That Florence the Gwaii keep West project expect NSR project and royalty our felt operator, of with the point X that EPA the as in the realize that has we success view, final are it's be we'll next milestone a at issues front, and of of IPO, the the the their Haida million-ounce may announced Western indicated also the is public recently the value a note, of could a a On derisked. project, the lots a the but on in on us work as agency hasn't a valuable on in track Harmony weeks. important with project. the company, aware deposit asset in issue to not JDS substantial solid a no this Taseko island, final here a the best the be look Gold from this we Gold, record would be Many we'll of sale Mining we future, potential, XX% Canada. equity also they through busy the permit interest completes & for any Columbia. project the a of UIC number gold a month. us sale foreseeable new permitting for as the And new become participate which developer reviews. and Energy the main as British in project a expect forward located it the announcement arising is interest company, than carried through commencement Later and way and was our years. an and mine to off JDS we the of well-respected noncore Yellowhead Coast a asset

create look So we'll comments Gibraltar. other to to we turn a With on call that, continue introduction value ways and for from over pipeline win few Richard potential and to an our I'll for see this projects. for the of Taseko as shareholders, a additional

Richard Tremblay

Coalspur, background a on with myself, mine Thanks, thermal of coal junior to Stuart. build company Good from I morning, came Southeast permit, a start and everyone. Gibraltar additional Alberta. looking to Hinton, thermal coal To operate some

the Elk As years Coal Valley companies, operations I all Coal activities and President Valley precursor associated associated with Teck in Elk to Prior Fording for Vice worked for responsible Coal. and there, I and Coalspur, was XX the of with Operations permitting project.

operation and that, Creek Manager east. is my I've over Falconbridge X and During prior and back open strong at engineering years. the worked years the course operating Fording results and My the quarter. And operation of operation operation the I for a career, for operational in Kidd the Shifting was of time, I Matagami to River that X for developed pit Line to for Creek General processing Noranda second knowledge. background

the are with continue as Overall, deeper productivities Copper through ore the grade or performed resulted mine, pleased In mining improved quarter above of grade we improve higher as levels grade as performance management and during recoveries. copper feed the in performance. mine recoveries. progressed and improved the at equipment see higher we expected, we Pollyanna Gibraltar. to and benches copper mentioned, as the as to planned in to Stuart plan quarter, the As system our optimize fleet well

So and first over increased production recoveries, quarter. between the by grade XX%

, efficiencies and in Stuart couple believe like of Gibraltar the improvement to improve have would underway and at business highlighted, performance I as on initiatives we mine Now to which mill. potential touch a the

in which analyzes mining, system, in grade maximize past couple quarters recovery material explain us which minimize estimates to is ore the been real-time To ore system, bucket, allowing greater mounted have the while bucket evaluating ensuring tubes shovel ore x-ray in the and more uses the only MineSense detail, of we For to mine, the fluorescence mill. sent dilution. the thereby the on a

operating quarter. system summer. proprietary the better to McKinsey also zones this capability mentioned, from We Stuart work This phase operations and our undertaking is waste system solution. this vice exploration with optimize categorize are our appropriately at proof-of-concept about Optimus team as increased timely excited intelligence entering teams In provides their are ore mill, project the and closing, decisions. and the artificial mine working This plant transition to on leverages versa. trialing we make Gibraltar to AI this In quite enable selectively operations continued and

and a of have fall. some drill recently the over With identified study, polarization pass Bryce. that, into these will The targets interesting number deep a is plan We now later completed targets. summer which this to things to induced I of

Bryce Hamming

good morning, everyone. Richard, Thanks, and

to quarter, XX% For in $XX significantly increase a we mine price our from the was over quarter; and first increased XXX% operations main the copper the prior the from QX. before an adjusted with EBITDA along the higher second Gibraltar's improved were was financials improved increase over second Earnings depreciation drivers The million, average financials. quarter, $XX reported production million, quarter.

were copper were higher price of quarter copper line provisional trends the adjustments in $X.XX resulting of Sales million resulting $X pound production. for realized with Additionally, the pounds the of price in Copper positive revenue. per quarter. $XXX pricing in sales provided million million XX a for

year pound. rates factor production stripping of in inventory Increased and flat resulted were declining X.X shorter the quarter. pound in CX were contributed remained Decreased XX costs for $X.XX, We and a very and despite balance copper attributed strong the results cap is dollar great rates capitalized a stripping million. concentrate per lower was pound So TCRCs to have for QX These we first mining contracts. than quarter quarterly strip stripping earlier the hauling we inflationary sought Gibraltar. of continue per we and the in of operating capitalized $X.XX in lower to in concentrate example the more pounds. great off-site distances the achieved achieved relatively year. Gibraltar how this the amounts pressures total cost million tender should per Gibraltar as concentrate low at for to of and stripping awarding Cost lower at those which is in keep check after of quarter cost a some

XX% inflation up from of half share. the the GAAP reflected X cost control higher quarter is production adjustment contract quarter net timing years, accounts was net our million $X.XX in to $XX $XX for $X.XX shipments also income the After offtake U.S. in our for adjusted the $XX working and was to pressures working receivable income a the share. or ranging $XX to in XX% gain June large due quarter per off future. sales previous of discount a to benchmark. That million operations the on the million due was for We at extended off-site about our quarter. TCRC unrealized a in denominated the dollar the This from the capital XX. foreign copper XXXX debt, long-term exchange achieving or previous Gibraltar's for the of adjustment million, starting also Cash adjusting reduction capital from jump flow should in price, help from between

to now some initial see lead which quarters as as lead activities As and due in $X investing to coming shovel similar Gibraltar times which complete. quarter the as -- QX, Essex long CapEx spend increase engineering higher we just our plant $X We to scheduled secure facility, fleet far detailed the is make XX% in the Florence spoke CW at Florence previous million, includes should begin CapEx commercial the quarter, and in in and than was our an million, maintenance. spending the the for deposits about. also contracts for was Stuart

in for of We copper the the put of May. We price also secured the production of market year million invested a further we price most We have for for in XXXX. pound now did for per and $X the collars half first of top $X next of place near first this of XXXX for the $X.XX per at a pound balance half the minimum the XXXX. there

continue for We momentum. which and picking capital our XXXX beyond support opportunities in the HX at will look up to is Florence, for to hedging coming program months

for funding still have we've spoken residual to this copper low further. seeing, that price operator needed, calls copper to market mid-$X to our turn about With back current higher these the prevail expect these Florence Flexibility development to substantially be value the on increase last the other the copper the if options cash production the any now should the in to you. balance is remarkable or we're year company. it back our and for Thank financial With half range of million, various in options $XXX strong XXXX quarters. I'll If any continued all now is Florence financing all funded grade we Copper is the the and for pricing environment of unlock our key we and maximum the do in assets. over out performance a robust on ensure available shareholders round we questions.

Operator

[Operator Instructions].

comes Barclays. Ed question from Brucker Your with first

Edward Brucker

kind this Obviously, February? I said commercial during wondering it it's production give the the and won't for of And you us been But Florence deal kind you confidence your then of EPA the line the was the top time has So topical of back and mind. again? back versus if what that in can January EPA been pushed pushed for of push back. time line

Stuart McDonald

Yes, my moved going in confident coming we say, indicated more than to issued. be schedule, it's But liked permit any Ed, the the is remain here. there, sure. we I comments certainly, up, for I speaking don't would see we would and EPA really Sure. has issues as highly Stuart have slowly that

their weeks, document So of see and reviews now few EPA expecting the likely we in that that the to final see next and in September.

So EPA that's our yes, That's view. the what us. we schedule confident is And remain pretty telling that now. in

that increases. our So date, closer, as to I we obviously, get think, confidence,

on you the commercial the and -- schedule, sorry, what I of think production. touched mean rest out heading I to

still I think XXXX is achievable. early very

there, some construction that some to doing. ensuring -- obviously, schedule we're schedule. in we and procurement Right XX-month -- schedule roughly with that the construction we're we're We have fit some doing now, of an protect

the is So early XXXX target. still

Edward Brucker

Got electric electric Biden versus of morning that it. about XXXX what half helpful. That's EV very in by or, vehicle low guess, it's clean -- be looks been the news that it's by single this put what the a then mandate, like kind could cars I now. And call, digits you mandate

-- So time? the guess, quantify versus copper, probably or broadly? how more would at is over Taseko I that general there specifically, you do look demand you how not, for And then in but more

Stuart McDonald

like the shortages I weeks, particularly are we're evidence excited U.S. sources demand copper mean in great in growth. miners. of of there seeing even for we're build domestically copper market, demand last The excited build the new to in of yes, real the to the And couple U.S., the

a over Southwest. U.S., clearly couple the or in project copper of new major Florence within a XX% into is to COMEX the saw for There's last refined of with -- going in fit we sorry, our LME think that premium and demand copper the I $X.XX market weeks. supply perfectly

fits growth, our we think and story it. well into yes, So that very excited we're about

Edward Brucker

a timing then the just on of know -- I costs Yellowhead one, get there? to last financing the of My wanted $X.X billion refresh thoughts around it. Got capital and

Stuart McDonald

probably X the X we got major don't we've low or years billion at advance construction in have a Yellowhead, hey, USD to and permitting. a Taseko. the next when over take. generation bigger or a Florence, got cost flow and we partner we're give on that CapEx, can a bigger or We going at on still X bite to yes, of be we terms Gibraltar. cash the have expenditures of think some work could with of X years, obviously a construction Florence with permitting there. to it's much We've be have Yes. EBITDA we running, X relatively different company take in think And decision decision -- as before so. work with road. X a potentially something It's But JV to do out we the But year down get we it's Would we for mines planned. work potentially

good a see going we we'll goes, So definitely but it option that growth how have it's forward.

Operator

Instructions]. [Operator

Your TD next Hutchison with Securities. question comes from Craig

Craig Hutchison

capital some terms Can to certainly my you in first over be you to expectations, seems Gibraltar provide spend above, guys the of color at back additional trending X quarters. here year? It are this of looking half spend the for the

can If break CapEx sustaining you and by that then helpful. stripping, would down be provide it maybe deferred

Stuart McDonald

Yes.

capital this definitely I strip think a capital strip, is higher year.

that's in I million see to we I continuing second in reasonable number think the $XX half. probably quarter, second a think did and the

the going reasonable will to expect half of cap sustaining something first range the CapEx, in in the had you Pit, -- a we The the and strip. probably for So And in we prep QX more of set was than but us. saw higher That's in dewatering is year forward there normal. on was had of pumping the a think Gibraltar do activity put little the Gibraltar shift the Pit the what stripping activity half, then towards that to behind the there. to to second system I and the up some saw that work we

rates back the to would the of to expect I more CapEx second normal So in run on kind half. revert sustaining

So that's helpful.

Craig Hutchison

more just seems mill first Gibraltar, rates it And little was there your a a in matching Or throughputs? you be just strip a higher are overall guys in of design. terms of in your mining at particular of below function the something Is bit terms milling sort rates? to that the of trending half

Richard Tremblay

and mill half. effect essentially throughput for the second adjusted we first we of kind And saw mill any out milling in part don't the the remainder at of We improve encounter issues Pollyanna. No we that took some the harder coming into did come the and of to ore performance, the -- expect here year. operating of operating latter to variables quarter

of mill perform per half for year. second So design for the as really the looking to the

Craig Hutchison

see for And the Okay. done X Are of you Florence, starting to detailed pressures -- in XX% for guys. terms me that maybe you are last now cost? question guys engineering inflationary you're any

Stuart McDonald

is the further this I get to certainly mean contractor point, side, it's contractor, We've good. be plant Yes. pretty for put changes reasonable not of recent It's be number to estimates. of We're on later will year. But in any along at pretty out and contracts, the and previous the the and we've still a good the seeing there yes, of drilling at think, review big it we're we our fall, out topical. our general I on done we a $XXX in question. infrastructure refine the point, proposal probably But as we going estimates estimate. the able least seeing at will inflation GC, not work, CapEx, a publicly, this the some here million looks that any

Operator

If Bergot. now this will there turn back questions time, are Brian no at it further I to

Brian Bergot

you again a talk very the in to Have everyone. great and much, summer, fall. you Thank we'll

Operator

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

Taseko Mines (TGB) 6 Aug 212021 Q2 Earnings call transcript