2. Forward-Looking Statements
Some of the statements contained in the following material are "forward-looking
statements". All statements in this release, other than statements of historical
facts, that address estimated mineral resource and reserve quantities, grades
and contained metal, and 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 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 Commission at www.sec.gov. and its Canadian
securities filings that are available at www.sedar.com.
3. A Year in Review
2008 – An Unprecedented Collapse
$6.00
Copper (US$/lb)
Taseko Share Price (C$)
$5.00
$4.00
$3.00
Low – US$1.26/lb
$2.00
2009 – An
$1.00
Unexpected
Low – C$0.66/share Rebound
$0.00
Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10
4. A Year in Review
Key Accomplishments
February 2009 – Finalized a US$30 million term loan facility with Credit Suisse to
fund expansion projects at its Gibraltar Mine
June 2009 – Purchased entire US$30 million of Convertible Bonds, out of
working capital, eliminating the dilutive effects of the bonds
August 2009 – Completed installation of a new tower mill, increasing regrind
capacity and improving metal recoveries
September 2009 – With the addition of Investec, the Company increased its term loan
facility to US$50 million.
November 2009 – Increased Prosperity reserves to 7.7 million ounces of recoverable
gold and 3.6 billion pounds of recoverable copper
January 2010 – Received British Columbia Environmental Assessment Certificate
for Prosperity
March 2010 – Repaid entire US$50 million long-term credit facility
March 2010 – Completed transaction to sell 25% of Gibraltar Mine for ~$187
million
April 2010 – 23.2 million pounds of copper production from Gibraltar in Q1 2010
May 2010 – Signed gold stream agreement with Franco-Nevada to sell 22% of
future gold production from Prosperity for US$350 million
5. A Year in Review
Steadily Increasing Production
25
Cathode
20 Concentrate
(millions lbs)
15
10
5
0
Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
• In second half of 2008, all capital projects were supspended
• Expansion modernization projects back on track and benefits
now being realized
6. Financial Returns
Financials Back on Track
$140
$120
$100
$80
(C$, millions)
$60
$40
$20
$0
-$20
-$40
2007 2008 2009 2010*
Q1 Annualized Estimate
Operating Profit Net Earnings Cash Flow from Operations
7. Financial Returns
Balance Sheet Strengthened
$700
$600
$500
(C$, millions)
$400
$300
$200
$100
$0
2007 2008 2009 2010
At March 31
Cash and Equivalents Total Assets Shareholders' Equity
8. A Year in Review
Peer Performance
1000
Taseko Taseko Stock has increased
Quadra
Teck
670% in last 17 months, compared
Inmet to our peer average of 270%
First Quantum
750
Rio Tinto
Anglo
Freeport
Imperial
Capstone
500
250
0
Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10
9. Prosperity Gold-Copper Project
Location: 125 km south-west of Williams Lake, BC
Ownership: 100%
7.7 million ounces recoverable gold
Mineral Reserves:
3.6 billion pounds recoverable copper
Mine Type: Open-pit
Estimated Annual 245,000 ounces gold
LOM Production: 110 million pounds copper
Mine Life: 33 years
• Environmental Assessment Approval
• Provincial Gov’t approval received on January 14, 2010
• Federal Gov’t approval expected in Q3/10
• Mine Permitting
• Underway
• Submission to British Columbia Ministry of Mines in
April/10
10. Prosperity Gold-Copper Project
Production
Yr 1* Yr 2 Yr 3 Yr 4 Yr 5
Gold (ounces) 158,300 294,900 324,200 274,000 303,600
Copper (thousands, pounds) 72,600 125,500 131,100 116,600 118,400
• 33-year mine life
• 5-year production profile
• 300,000 ounces au/year
• 130 million pounds cu/year
• Life of mine average annual production ~400,000
gold eq. ounces
*Six months of production
11. Prosperity Gold-Copper Project
Economics
• Feasibility Study complete
• Capital cost of C$815 million
• Operating cost of C$7.50 per Copper – US$/lb
tonne milled $1.65 $2.15 $2.65 $3.15
$650 1 $225 $825 $1,425 $2,000
Feasibility
• Total costs, net of BPCs at
Study
2 10% 17% 23% 28%
US$3.00 cu, of negative 3 8.0 4.5 3.5 2.75
US$330/oz gold $750 1 $500 $1,100 $1,700 $2,300
2 13% 19% 25% 31%
• Margin at today’s gold price
Gold – US$/oz
3 5.5 4 3 2.5
is ~$1,500 per ounce of gold $850 1 $775 $1,400 $1,975 $2,600
L/T Cons.
Pricing
2 16% 22% 28% 34%
3 4.5 3.5 2.5 2.5
$950 1 $1,000 $1,600 $2,300 $2,900
1 – Pre Tax NPV @ 7.5% (C$, millions) 2 19% 25% 31% 37%
2 – IRR (%) 3 4.0 3.0 2.5 2.25
3 – Payback (years)
12. Total Au Resources (MM ozs)
-
2
4
6
8
10
12
14
16
18
20
94M
Pebble - Northern Dynasty Minerals
44M
Reko Diq - Antofagasta
Oyu Tolgoi - Ivanhoe Mines
32M
Tampakan - Xstrata
Lookout Hill - Ivanhoe Mines
Salobo - Vale SA
Prosperity - Taseko Mines
Bougainville - Rio Tinto
Frieda River - Xstrata
Agua Rica - Yamana Gold
Golpu - Newcrest Mining
Galore Creek - NovaGold Resources
El Morro - Xstrata
Casino - Western Copper
Red Chris - Imperial Metals
Bystrinskoye - Norilsk Nickel (MMC)
Esperanza - Antofagasta
Xietongmen - Continental Minerals
Telegrafo Sur - Antofagasta
Boyongan - Philex Gold
Cerro Colorado - Government of Panama
Namosi - Newcrest Mining
Schaft Creek - Copper Fox Metals
Kingking - Benguet
Taldybulak Talas - Gold Fields
Mirador - Corriente Resources
Josemaria - Suramina Resources
Mankayan - Bezant Resources
Galeno - China Minmetals
Ak-Sug - Golevskaya Mining Company
El Arco - Southern Copper
Gold Grade (g/t)
Cloncurry - Ivanhoe Australia
Low Political Risk
High Political Risk
Sinchao - Sinchao Metals
Medium Political Risk
Cobre Panama - Inmet Mining
Duboashan - China Non-Ferrous Metal
Sierra Gorda - Quadra Mining
Yandera - Marengo Mining
Mirdita - Tirex Resources
Kuru Tegerek - China Shen Zhou Mining
Tuwu-Yandong - Yunnan Copper
Ajax - Abacus Mining and Exploration
Ilovitza - EurOmax Resources
Taca Taca - Lumina Copper
Hushamu - IMA Exploration
Gameleira - Vale SA
Copper Canyon - SpectrumGold (Novagold)
Kodu - Government Of Papua New Guinea
Top 50 Major Global Non-Producing Cu-Au Deposits by Gold Contained
Taysan - Chase Resource
Tong-La-Shan - Jinshan Gold Mines
political risk (2nd largest pre-producing deposit in a low political risk jurisdiction globally)
Nokomis - Duluth Metals
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
• Prosperity is one of the largest non-producing copper-gold deposits in a jurisdiction with low
Gold Grade (g/t)
Source: Wellington West Capital Markets; Metals Economics Group 2008-2009; Fraser Mining Institute Survey for Political Risk; Transparency International Annual Report 2008
Prosperity Gold-Copper Project
13. Prosperity Gold-Copper Project
Timeline
Feasibility
Reserve Update
Environmental Assessment Review
Provincial EA Certificate Granted
Permitting
Permit Applications Submitted
Federal EA Certificate Granted
Project Financing
Order Long-Lead Equipment
Site Prep
Construction
Commissioning
2006 2007 2008 2009 2010 2011 2012 2013 2014
14. Prosperity Gold-Copper Project
British Columbia/Canadian Permitting
Red Chris • British Columbia is responsible for
(copper/gold)
British mine development
Columbia • The Province granted Prosperity EA
Certificate in January 2010
Galore Creek
(copper/gold) Mt. Milligan • Four other similar projects have
(copper/gold) received EA Certificates and permits
in recent history
• Federal review panel to issue final
Williams Lake report to minister in early July
Prosperity
(Gold / Copper)
Copper Mtn.
(copper/gold)
Vancouver
Mining projects permitted in last 12-18 months
15. Prosperity Gold-Copper Project
Details of Gold Stream Agreement
• Franco-Nevada will have right to purchase 22% of
Prosperity gold production for $400/oz (inflation adjusted)
• Taseko will receive US$350 million plus 2 million Franco-
Nevada 2017 share warrants
• Funding contingent on:
• permitting,
• project being fully financed, and
• 75% of concentrate contracted for 5 years
• Deposit funded pro-rata with other sources of capital
16. Prosperity Gold-Copper Project
Value of Gold Stream Agreement
• Taseko will receive ~45% of required construction capital
by selling 6% of total gross revenue
Recoverable Metal
Au 7.7 million oz
Cu 3.6 billion lb
Long-term Metal Pricing
Au price $925/oz
Cu price $2.10/lb
Total Au revenue $7.1 billion
Total Cu revenue $7.6 billion
Total revenue $14.7 billion
Au revenue to FNV $0.9 billion
% of total revenue to FNV 6.1%
17. Prosperity Gold-Copper Project
Financing
Sources: (C$ millions)
1) Cash on Hand $200
2) Sold 22% of Prosperity Gold Stream $350
3) Gibraltar Cashflow $100
Total $650
Prosperity Capital Costs: $815
Financing requirements: $165
Financing Options:
1. Project finance debt
2. Sale of offtake for debt
3. Sale of minority interest in Prosperity (5%-10%)
18. Gibraltar Copper Mine
Location: 65 km north of Williams Lake, BC
Ownership: 75%
2.7 billion pounds recoverable copper
Mineral Reserves:
30 million pounds recoverable molybdenum
Mine Type: Open-pit
Estimated Annual 90 million pounds copper (Taseko share)
LOM Production: 900,000 pounds molybdenum (Taseko share)
Mine Life: 25 years
• 25% of Gibraltar was sold to Japanese consortium in Q1 2010
for $187 million
• $300 million invested to modernize the operation
• Remaining improvements expected to be completed by Q4 2010
• Average annual copper production to increase to 115 million
pounds by Q4 2010
• Gibraltar is the second largest open pit copper mine in Canada
• Replacement value of $825 million
19. Gibraltar Copper Mine
Steadily Increasing Production
250 300
250
200
Prosperity
Prosperity
(Au - ozs, thousands)
(Cu - lbs, millions)
200
150
150
100
100
Prosperity
Prosperity
Gibraltar
Gibraltar
Gibraltar
Gibraltar
Gibraltar
Gibraltar
50
50
0 0
2009 2010 2011 2012 2013 2014
By 2013, copper production increasing by 200% plus
300,000 ounces of gold per year
20. Looking Ahead
2010 Key Priorities
Receive Provincial approval for the development of Prosperity
Complete transaction to sell 25% of Gibraltar to Japanese
Consortium
Reduce Long-term debt
Monetize a portion of Prosperity’s gold stream
Convert Prosperity’s mineral claims to a mining lease
Complete funding of remaining ~$165 million for construction
of Prosperity
Receive final approvals for development of Prosperity from
Federal Government
Commence site preparation work at Prosperity
Complete Gibraltar expansion/modernization project
21. Looking Ahead
New Higher Priced Hedges now in Effect
$5.00
If copper above, then
Cap Price Taseko pays
$4.00
$3.00
Collar Price If copper price below,
$2.00 then options pay
Taseko
$1.00
$0.00
Jan-10 Apr-10 Jul-10 Oct-10
25. Analyst Recommendations
12-Month
Target Price
Raymond James - Tom Meyer 7.00
Paradigm Capital - David Davidson 7.75
Credit Suisse - Alex Terentiew 6.00
Canaccord Capital - Orest Wowkodaw 6.40
Jennings Capital - Peter Campbell 7.00
CIBC - Ian Parkinson 7.50
BMO Capital Markets - David Cotterell 7.00
TD Newcrest - Craig Miller 7.50
Wellington West - Steve Parsons 7.00
Bloomberg Consensus: 7.02
26. The Taseko Advantage
Financial • ~$200 million cash on hand ($1/share)
Strength • Significant Cash flow at current metal prices
• Planned 60% copper production increase from
Growth Gibraltar over next 9 months
Potential
• Diversifying into major gold producer
• 8 million ounces of gold reserves (16 million ounces
Long-Life of gold resources)
Assets • 6 billion pounds of copper reserves (11 billion
pounds of copper resources)
• Assets located in secure political jurisdiction
Stability
• Experienced, operations-focused management team
Market Capitalization = C$1.0 billion
