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, 2010
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/ Russell E. Hallbauer
Director and Chief Executive Officer
Date: May 17, 2010
Print the name and title of the signing officer under his signature
800 West Pender
Street, Suite 1020
Vancouver , British Columbia
Canada V6C 2V6
Tel: 604-684-6365
Fax: 604-684-8092
www.tasekomines.com
TASEKO ANNOUNCES FIRST
QUARTER 2010 EARNINGS RESULTS
May 13, 2010, Vancouver, BC - Taseko Mines Limited (TSX:
TKO; NYSE Amex: TGB) ("Taseko" or the "Company") reports
the results for the three months ended March 31, 2010. This release should be
read with the Company's Financial Statements and Management Discussion &
Analysis, available at www.tasekomines.com and filed on www.sedar.com. Except
where otherwise noted, all currency amounts are stated in Canadian dollars.
For the quarter ended March 31, 2010, the Company reports an operating profit
of $33.1 million and earnings before tax and other items of $14.3 million, compared
to an operating profit of $6.6 million for the quarter ended March 31, 2009.
Other items include a gain on the contribution to the Joint Venture of $97.4
million and an unrealized (non-cash) marked-to-market gain attributable to derivative
instruments related to the copper hedging program of $7.5 million.
Revenue for the quarter was $75.5 million from the sale of 20.5 million pounds
of copper and 210,000 pounds of molybdenum at an average realized price of US$3.31
per pound for copper and US$19.68 per pound for molybdenum.
Russell Hallbauer, President and CEO of Taseko commented, "A combination
of improved production performance at Gibraltar, increased copper pricing and
the unwinding of our copper hedges has resulted in strong quarterly earnings.
With the copper price cap on our hedges increasing to US$3.95 as of June, Gibraltar's
cash flow generating ability will be substantially increased. Even though recent
economic news has negatively affected the price of copper, the current price
of approximately US$3.25 per pound is more than double the price just 15 months
ago. Longer-term, industry analysts are expecting the lack of new copper capacity
to cause a supply deficit, which would put significant upward pressure on copper
prices."
Mr. Hallbauer continued, "With roughly $200 million cash on hand, zero debt,
$350 million from the gold stream sale announced yesterday, plus future Gibraltar
cash flow, we have secured most of the cash required to build our Prosperity
gold-copper project. The federal public hearings concluded last week and we
remain confident that the Federal Cabinet will grant approval for the development
of Prosperity. I continue to believe that the full value of Prosperity is not
recognized in Taseko's stock price. But, as we continue to de-risk the project,
I am certain that this will change and ultimately our shareholders will be rewarded."
Highlights
Gibraltar Production and Sales
•Copper in concentrate sales volume in the three months ended March 31, 2010 was 20.4 million pounds compared to 17.8 million pounds of copper in concentrate sold during the three months ended March 31, 2009.
•Copper cathode sales volume in the three months ended March 31, 2010 was 0.1 million pounds compared to 0.7 million pounds in the three months ended March 31, 2009.
•The average price realized for sales of copper during the period was US$3.31 per pound, compared to US$1.61 per pound realized in the three months ended March 31, 2009.
•Molybdenum in concentrate sales volume in the three months ended March 31, 2010 was 210,000 pounds compared to 230,000 pounds sold in the three months ended March 31, 2009.
•The average price realized for sales of molybdenum for
the three months ended March 31, 2010 was US$19.68 per pound, compared to US$8.38
per pound realized in the three months ended March 31, 2009.
The following table is a summary of operating statistics:
Three
months ending March 31, 2010 |
Three
months ending March 31, 2009 |
|
Total tons mined (millions)1 |
11.5 |
6.9 |
Tons of ore milled (millions) | 3.6 |
3.2 |
Stripping ratio | 2.2 |
1.0 |
Copper grade (%) | 0.355 |
0.368 |
Molybdenum grade (%Mo) | 0.014 |
0.010 |
Copper recovery (%) | 89.8 |
82.3 |
Molybdenum recovery (%) | 21.5 |
30.8 |
Copper production (million lbs)2 | 23.2 |
19.9 |
Molybdenum production (thousands lb) | 194 |
187 |
Foreign Exchange ($C/$US) | 1.04 |
1.24 |
Copper production costs, net of by-product credits3, per lb of copper | US$1.20 |
US$0.90 |
Off property costs for transport, treatment (smelting & refining) & sales per lb of copper | US$0.34 |
US$0.28 |
Total cash costs of production per lb of copper | US$1.54 |
US$1.18 |
1 Total tons mined includes sulphide ore, low grade stockpile material, overburden, and waste rock which were moved from within pit limit to outside pit limit during the period. |
2 Copper production includes concentrate and cathode. |
3 By-product credit is calculated on a three month total and averaged over the quarter. |
Total tons mined was greater than the corresponding quarter in 2009
as a result of increased strip ratio. The mine moved back to the mine site
average strip ratio based on continued strength in the price of copper. The
higher operating cost was off-set by an increase in copper production related
to the improved copper recovery. Molybdenum recovery was negatively affected
by the circuit changes which improved the copper recovery; Gibraltar metallurgical
staff are confident that this issue can be resolved. Increased strength in
the Canadian dollar against the US dollar attributed $0.25/lb to the increase
in cost of copper production.
Fixed Infrastructure Upgrades and Installations
As at the date of the MD&A, construction is 100% complete on the new in-pit
60-inch by 89-inch crusher and conveyor system, which is currently being commissioned.
This new system will reduce operating costs and improve mine productivity
by replacing the smaller original Gibraltar crusher and supplanting approximately
three diesel-powered haulage trucks with an electrically driven overland conveyor
belt.
Replacement of the current single-line tailings system with a two line system
and substitution of the natural gas fired concentrate dryer with a filter
press are planned to be completed in the second and third quarters of 2010,
respectively. This equipment will reduce operating costs, provide a more stable
operating platform, and be able to handle higher volumes expected as the mill
throughput increases.
Detailed engineering is complete and procurement and construction will begin
in the second quarter on a SAG mill direct feed system. This new set up is
designed to improve mill availability, increase throughput and reduce costs
by eliminating the complicated secondary crusher and fine ore feed system.
The new direct feed system will also allow larger mill feed more appropriate
for autogenous grinding than can be achieved with the current system. Completion
of construction of the direct feed system is expected in the fourth quarter
of 2010.
Prosperity
Taseko holds a 100% interest in the Prosperity property, located 125 kilometers
southwest of the City of Williams Lake. The property hosts a large porphyry
gold-copper deposit amenable to open pit mining.
The Ministry of Environment of British Colu mbia accepted Taseko's Environmental
Assessment report on March 13, 2009 and proceeded under provisions of the
Environmental Assessment Act with an Environmental Assessment Office ("EAO")
led review of this Project in a coordinated manner with the Canadian Environmental
Assessment Agency ("CEAA") on their respective provincial and federal
environmental assessment processes.
On January 14, 2010, Taseko received the environmental assessment certificate
for the Prosperity Project from the British Columbia Provincial Ministry of
Environment. This is an important milestone as it is the provincial government
which is responsible for mine development in British Columbia. The Provincial
Mines Act permit application is planned to be submitted to the Ministry of
Energy, Mines, and Petroleum Resources during the second quarter.
The federal process, conducted by a three-person Panel operating under defined
Terms of Reference, is required to be complete in a timely and efficient manner.
The public hearings were held over a seven week period and concluded on May
3, 2010. Details of the hearings are available on the CEAA website and the
Company's closing submission is posted on the Taseko website www.tasekomines.com
under Events and the Prosperity Project website www.prosperityproject.ca
under What's New. The Federal Panel will submit its findings to
the Federal Minister of Environment for a decision, with the process expected
to be completed by mid 2010.
Taseko will host a conference call on Friday, May 14, 2010 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) 303-9079, or (970) 315-0461 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,
2010 and can be accessed by dialing (800) 642-1687 in Canada and the
United States, or (706) 645-9291 internationally and using the passcode
69896437. |