UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
CIK # 878518
as at May 13, 2008
TASEKO MINES LIMITED
800 West Pender Street, Suite 1020
Vancouver , British Columbia
Canada V6C 2V6
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F...X.... Form 40-F.........
Indicate by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of
a Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in
this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes ..... No .....
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- ________
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
By: /s/ Jeffrey R. Mason
Director and Chief Financial Officer
Date: May 15, 2008
Print the name and title of the signing officer under his signature.
1020
- 800 West Pender Street
Vancouver BC Canada V6C 2V6
Tel 604 684 - 6365
Fax 604 684 - 8092
Toll Free 1 800 667 - 2114
www.tasekomines.com
TASEKO ANNOUNCES SECOND QUARTER FISCAL 2008 RESULTS
May 13, 2008, Vancouver, BC - Taseko Mines Limited ("Taseko"
or the "Company") (TSX: TKO; AMEX: TGB) announces its financial results
including production and sales for the Gibraltar Mine located near
the City of Williams Lake in south-central British Columbia. Dollar amounts
are in Canadian currency unless otherwise indicated.
For the three months ended March 31, 2008, Taseko reported an operating profit
of $28.2 million, and net earnings of $16.2 million or $0.12 per share ($0.10
per share fully diluted). Sales for the quarter were 14.8 million pounds of
copper at an average realized price of US$3.67, and 257,000 pounds of molybdenum
at an average price of US$33.17 per pound.
Financial results from operating activities during the quarter compared to
the same period in the prior year are shown in the table below:
Quarter
Ended March 31, 2008 |
Quarter
ended March 31, 2007 |
|
Revenue |
$65.4 million |
$51.6 million |
Copper1 |
$56.5 million |
$46.8 million |
Molybdenum |
$ 8.9 million |
$4.8 million |
Cash Flow2 |
$32.0 million |
$12.3 million |
Cash Flow per Share (basic) |
$0.23 |
$0.10 |
Operating profit3 |
$28.2 million |
$26.9 million |
Earnings before income tax |
$22.6 million |
$23.0 million |
Earnings after income tax |
$16.2 million |
$11.5 million |
Earnings per share (basic) |
$0.12 |
$0.09 |
1 Copper revenue in 2008 includes proceeds from sales of copper concentrate and copper cathode.
2 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.
3 Operating profit is comprised of revenues less cost of sales and depletion, depreciation and amortization.
Gibraltar Mine
• Monthly copper production steadily increased from 3.3 million
pounds in January, to 5.5 million pounds in March as SAG mill commissioning
proceeded on schedule. For the quarter, Gibraltar produced 13.4 million pounds
of copper and 176,000 pounds of molybdenum.
• Also trending higher, mill throughput rates in December averaged 1,300
tons increasing to 1,480 tons per hour in March. More recently, mill throughput
rates have averaged 1,585 tons per hour, equivalent to 38,000 tons per day.
• Both copper and molybdenum recoveries increased quarter over quarter
to 81% (copper) and 40% (molybdenum), up from 78% and 33%, respectively.
• Cash costs for the quarter were affected by foreign exchange, waste
stripping, diesel fuel, grinding media and extraordinary items involved with
the start-up of the SAG mill.
Second Quarter Fiscal 2008 Production
The following is a summary of the operating statistics for the first quarter of 2008 (Q2 2008) compared to the same quarter in fiscal 2007 (Q2 2007).
Q2-Fiscal
2008 |
Q2-Fiscal
2007 |
|
Total tons mined (millions)1 |
9.7 |
8.7 |
Tons of ore milled (millions) |
2.2 |
2.3 |
Stripping ratio |
3.2 |
2.6 |
Copper grade (%) |
0.349 |
0.315 |
Molybdenum grade (%Mo) |
0.009 |
0.010 |
Copper recovery (%) |
81.0 |
78.2 |
Molybdenum recovery (%) |
40.2 |
33.8 |
Copper production (millions lb)2 |
13.4 |
11.8 |
Molybdenum production (thousands lb) |
176 |
160 |
Copper production costs, net of by-product credits3, per lb of copper |
US$1.48 |
US$0.96 |
Off property costs for transport, treatment (smelting & refining) & sales per lb of copper |
US$.44 |
US$0.37 |
Total cash costs of production net of by-product credits3, per lb of copper |
US$1.92 |
US$1.33 |
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 2008 copper production includes 12.6 million lb in concentrate and 0.8 million lb in cathode.
2007 copper production includes 11.2 million lb in concentrate and 0.6 million lb in cathode
3 2008 by-product credit is based on pounds of molybdenum and ounces of silver sold.
Tons mined were higher in the second quarter of fiscal 2008
compared to fiscal 2007 as mine operations in 2008 continued to concentrate
on waste stripping to offset shortfalls in prior years, resulting from low
equipment availability issues and the world-wide shortage of haulage truck
tires. Ore milled in Q2 2008 and Q2 2007 were essentially the same. In Q2
2008, the Phase 1 concentrator expansion was completed and the early stages
of ramp up to full production began.
Copper recovery was higher in fiscal Q2 2008 compared with the same quarter
in 2007 as a result of improved performance of the new flotation system. Molybdenum
production also improved as a result of a 19% increase in recovery over the
same period in fiscal 2007.
Cost per pound of copper produced was higher than in the same quarter in 2007
as a result of the strength of Canadian currency and cost increases associated
with initial SAG and ball mill start-ups, a major shovel re-build, the price
of diesel fuel and steel (grinding media), as well as activities such as additional
stripping and long haul pit development.
Off-property costs during the quarter were higher than in the comparable quarter
in 2007 as a result of higher transportation charges.
Concentrator Expansion Project
The two phase expansion underway at the concentrator facility at Gibraltar
is continuing on time and on budget. The first phase, which was completed
in February, involved the installation of a new thirty-four foot diameter
Semi Autogenous Grinding (SAG) mill as well as installation of ten new flotation
cells and various upgrades to increase the ore processing capacity to 46,000
tons per day (tpd). Daily milling rates of 46,000 tpd are expected to be achieved
in the summer of 2008.
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. Design work and procurement is on schedule for
project completion by late 2008.
Treatment and Refining Agreement
In April 2008, Taseko entered into a six-year agreement commencing
in the first fiscal quarter of 2009 and ending on December 31, 2014, with
MRI Trading AG, a Swiss-based metal trading company, for the treatment and
refining of Gibraltar copper concentrate. Under the terms of the agreement,
Taseko has secured long-term, fixed, low cost rates for processing approximately
1.1 million tons of copper concentrate. The Company has the right to price
payable copper within the concentrate based on a quotational period, declared
prior to, and covering each ensuing calendar year.
Pursuant to this agreement, the Company also secured a US$30 million line
of credit.
Convertible
Debenture - NVI Mining Ltd ("NVI") (formerly Boliden Westmin
(Canada) Limited)
Pursuant to a Notice of Conversion dated April 2, 2008, the convertible debenture
(the "Debenture") principal amount of $17 million was converted,
effective at $5.14 per common share, which would have resulted in 3,307,393
shares of the Company being transferred to NVI. However, the Company had already
filed an action in BC Supreme Court in May 2006, seeking a right of set-off
against the Debenture in respect of damages owing from certain latent income
tax liabilities that have been provisionally and conservatively quantified
as the equivalent of 694,422 shares. The Company therefore took a set off
of such shares otherwise issuable pursuant to the conversion provision of
the Debenture.
On April 28, 2008, NVI filed a Statement of Claim in the Supreme Court of
British Columbia, naming Gibraltar and Taseko as defendants, and seeking an
order that Taseko issue the 694,422 common shares withheld from the conversion
of the Debenture. Taseko has entered an appearance, will be filing a Statement
of Defense and Counterclaim shortly, and will be defending this action vigorously,
while at the same time pursuing its original claim against NVI.
Financial Results
The Company reported revenues of $65.4 million for the quarter,
compared to $51.6 million in the second quarter of the prior year. The increase
in revenue was the result of an increase in copper concentrate sales to 14.8
million pounds in Q2 2008 from 11.8 million pounds in Q2 2007. The average
price per pound of copper sold increased to US$3.67 per pound, up from US$3.13
per pound in the same quarter in fiscal 2007.
Revenues for the quarter consisted of copper concentrate sales of $50.8 million
(2007 - $46.3 million), copper cathode of $5.7 million and molybdenum
concentrate sales of $8.9 million (2007 - $4.8 million).
Cost of sales for Q2 fiscal 2008 was $36.0 million, compared to $24.0 million
for the same period in fiscal 2007. Costs of sales consists of total production
cost of $28.9 million (2007 - $19.4 million) for metal produced and sold
during the quarter and a concentrate inventory adjustment of $0.5 million
(2007 - $0.5 million). Treatment and transportation costs totalling $7.2
million (2007 - $5.1 million) were also included in cost of sales for
Q2 2008.
Amortization expense for the quarter was $1.1 million compared
to $0.7 million for the same period in fiscal 2007. The increase is the result
of capital equipment additions during the quarter as well as the start of
utilization of several pieces of equipment related to the concentrator expansion
and start of expensing of deferred stripping. Mining and milling assets are
amortized using the units of production method based on tons mined and tons
milled respectively and divided by the estimated tonnage to be mined and milled
in the mine plan. An increase in recoverable reserves during the period resulted
in higher estimated tonnage to be recovered in the mine plan and hence, a
reduced annual amortization rate.
Exploration expenses increased to $2.2 million in the second quarter of fiscal
2008, compared to $1.9 million for the same period in fiscal 2007. This increase
is due to a higher level of exploration activity at the Company's Prosperity
project, and related activities. During the quarter, the Company also capitalized
$0.2 million (2007 - $2.0 million) of exploration expenses related to
increasing the reserves and life of mine at Gibraltar.
General and administrative costs decreased to $2.5 million in the second quarter
of fiscal 2008 compared to $2.8 million for the same period in fiscal 2007.
Stock-based compensation decreased to $1.6 million in the current quarter,
compared to $2.3 million in the same period in fiscal 2007, as a result of
a greater portion of stock based compensation expense having been realized
in prior fiscal periods.
Interest and other income were $2.2 million as compared to $3.0 million in
2007. The decrease was due to a lower average cash balance in Q2 2008 compared
to the same period in the prior year. Interest expense and interest accretion
were approximately the same as in the first quarter of 2007.
The Company had a future income tax expense of $13.5 million in the current quarter compared to a future income tax expense of $9.0 in the same period of fiscal 2007. The increase in the future income tax liability is due mainly to the additional book-to-tax differences created by the Company's ability to take accelerated tax depreciation on certain mining assets. This is offset partially by future tax recoveries due mainly to a reduction in corporate tax rates announced by the federal government in December 2007 that were substantively enacted as at March 31, 2008. The Company has a tax receivable of $6.3 million (2007 - payable of $6.6 million). The receivable relates to a refund of taxes previously paid in installments to the taxation authorities due to the Company's ability to realize certain tax pools. This also accounts for the current tax recovery of $7.2 million (2007 - income tax expense of $2.5 million). The Company also has a tax liability provision of $25.5 million (2007 - $24.6 million) recorded on the Company's balance sheet recorded in fiscal 2004 in accordance with Canadian generally accepted accounting principles.
Additional details can be found in the Company's Financial
Statements and Management Discussion and Analysis which are filed on www.sedar.com.
Taseko will release
its second quarter results after market close on Tuesday, May 13, 2008
and will host a telephone conference call on Wednesday, May 14 at 11:00
a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results. The conference
call may be accessed by dialing (877) 604-9671, or (719) 325-4912 internationally.
A live and archived audio webcast will also be available at www.tasekomines.com.
The conference call will be archived for later playback until May 21, 2008 and can be accessed by dialing (888) 203-1112 in Canada and the United States, or (719) 457-0820 and using the passcode 2419228. |
For further information on the Company, please visit 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
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 40-F
filing with the United States Securities and Exchange Commission and its home
jurisdiction filings that are available at www.sedar.com.
Non-GAAP Measures
This document
includes certain non-GAAP performance measures including "total cash
cost of production" that do not have any standardized meaning prescribed
by GAAP and may not be comparable to similar measures presented by other companies.
The Company believes that these measures are commonly used, in conjunction
with conventional GAAP measures, by certain investors to enhance their understanding
of the Company's performance. The Company's use of these non-GAAP
measures is intended to provide additional information that should not be
considered in isolation or as a substitute for performance measures prepared
in accordance with GAAP.