Taseko Announces Second Quarter Financial and Operational Results

17 hours ago 1

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Non-GAAP Performance Measures – Continued

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(Cdn$ in thousands)	Q2 2024			Q1 2024			Q4 2023			Q3 2023
Net (loss) income		(10,953	)		18,896			38,076			871
Unrealized foreign exchange loss (gain)		5,408			13,688			(14,541	)		14,582
Unrealized derivative loss and fair value adjustment		10,033			3,519			1,636			4,518
Other operating costs¹		10,435			–			–			–
Call premium on settlement of debt		9,571			–			–			–
Loss on settlement of debt, net of capitalized interest		2,904			–			–			–
Gain on Cariboo acquisition		–			(47,426	)		–			–
Gain on acquisition of control of Gibraltar²		–			(14,982	)		–			–
Realized gain on sale of inventory³		3,768			13,354			–			–
Inventory write-ups to fair value that was sold or processed⁴		4,056			–			–			–
Accretion on Florence royalty obligation		2,132			3,416			–			–
Accretion on Cariboo consideration payable		8,399			1,555			–			–
Non-recurring other expenses for Cariboo adjustment		394			138			(916	)		1,244
Estimated tax effect of adjustments		(15,644	)		15,570			(194	)		(1,556	)
Adjusted net income		30,503			7,728			24,061			19,659
Adjusted EPS	$	0.10		$	0.03		$	0.08		$	0.07
¹Other operating costs relate to the in-pit crusher relocation project and care and maintenance costs due to the June 2024 labour strike. ²Gain on acquisition of control of Gibraltar relates to the write-up of copper concentrate inventory to fair value for Taseko’s 87.5% interest in Gibraltar at March 25, 2024. ³Realized gain on sale of inventory relates to copper concentrate inventory held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold. The realized portion of these gains have been added back to Adjusted net income in the period the inventory was sold. ⁴Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted net income in the period the inventories were sold or processed.

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Non-GAAP Performance Measures – Continued

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Adjusted EBITDA

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Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is presented as a supplemental measure of the Company’s performance and ability to service debt. Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present adjusted EBITDA when reporting their results. Issuers of “high yield” securities also present adjusted EBITDA because investors, analysts and rating agencies considering it useful in measuring the ability of those issuers to meet debt service obligations.

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Adjusted EBITDA represents net income before interest, income taxes, depreciation and amortization, and also eliminates the impact of a number of transactions that are not considered indicative of ongoing operating performance. Certain items of expense are added back and certain items of income are deducted from net income that are not likely to recur or are not indicative of the Company’s underlying operating results for the reporting periods presented or for future operating performance and consist of:

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Unrealized foreign exchange gains and losses;
Unrealized derivative gains and losses;
Amortization of share-based compensation expense;
Other operating costs;
Call premium on settlement of debt;
Loss on settlement of debt;
Bargain purchase gains on Cariboo acquisition;
Gain on acquisition of control of Gibraltar;
Realized gains on sale of finished goods inventory;
Inventory write-ups to net realizable value that was sold or processed; and
Non-recurring other expenses for Cariboo acquisition.

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(Cdn$ in thousands)	Q2 2025		Q1 2025		Q4 2024		Q3 2024
Net income (loss)	21,868		(25,814	)	(21,207	)	(180	)
Depletion and amortization	25,210		22,458		24,641		20,466
Finance and accretion expenses	23,943		15,567		21,473		25,685
Finance income	(124	)	(1,330	)	(1,674	)	(1,504	)
Income tax (recovery) expense	(27,439	)	(6,900	)	11,707		(200	)
Unrealized foreign exchange (gain) loss	(40,335	)	2,074		40,462		(7,259	)
Unrealized derivative loss (gain) and fair value adjustments	9,489		22,846		(25,514	)	1,821
Share-based compensation expense (recovery)	4,820		5,349		(323	)	1,496
Other operating costs	–		–		4,132		4,098
Inventory write-ups to fair value that was sold or processed¹	–		–		1,905		3,266
Adjusted EBITDA	17,432		34,250		55,602		47,689
¹ Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted EBITDA in the period when the inventories were processed.

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Non-GAAP Performance Measures – Continued

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(Cdn$ in thousands)	Q2 2024		Q1 2024		Q4 2023		Q3 2023
Net (loss) income	(10,953	)	18,896		38,076		871
Depletion and amortization	13,721		15,024		13,326		15,993
Finance and accretion expense	21,271		19,849		12,804		14,285
Finance income	(911	)	(1,086	)	(972	)	(322	)
Income tax (recovery) expense	(3,247	)	23,282		17,205		12,041
Unrealized foreign exchange loss (gain)	5,408		13,688		(14,541	)	14,582
Unrealized derivative loss	10,033		3,519		1,636		4,518
Share-based compensation expense	2,585		5,667		1,573		727
Other operating costs	10,435		–		–		–
Call premium on settlement of debt	9,571		–		–		–
Loss on settlement of debt	4,646		–		–		–
Gain on Cariboo acquisition	–		(47,426	)	–		–
Gain on acquisition of control of Gibraltar¹	–		(14,982	)	–		–
Realized gain on sale of inventory²	3,768		13,354		–		–
Inventory write-ups to fair value that was sold or processed³	4,056		–		–		–
Non-recurring other expenses for Cariboo acquisition	394		138		–		–
Adjusted EBITDA	70,777		49,923		69,107		62,695
¹ Gain on acquisition of control of Gibraltar relates to the write-up of copper concentrate inventories to fair value for Taseko’s 87.5% interest in Gibraltar at March 25, 2024. ² Realized gain on sale of inventory relates to copper concentrate inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold. The realized portion of these gains have been added back to Adjusted EBITDA in the period the inventory was sold. ³ Inventory write-ups to fair value that was sold or processed relates to stockpile inventories that were written-up to fair value as part of the acquisition of control of Gibraltar. These write-ups have been included in Adjusted EBITDA in the period when the inventories were processed

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Non-GAAP Performance Measures – Continued

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Earnings from mining operations before depletion, amortization and non-recurring items

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Earnings from mining operations before depletion, amortization and non-recurring items is earnings from mining operations with depletion and amortization, and any items that are not considered indicative of ongoing operating performance added back. The Company discloses this measure, which has been derived from the Company’s financial statements and applied on a consistent basis, to assist in understanding the results of the Company’s operations and financial position, and it is meant to provide further information about the financial results to investors.

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	Three months ended June 30,			Six months ended June 30,
(Cdn$ in thousands)	2025		2024	2025		2024
(Loss) earnings from mining operations	(502	)	44,948	15,864		69,367
Add:
Depletion and amortization	25,210		13,721	47,635		28,745
Realized gain on sale of inventory¹	–		4,633	–		17,987
Realized gain on processing of ore stockpiles²	–		3,191	–		3,191
Other operating (income) costs	(4,008	)	10,435	(4,008	)	10,435
Earnings from mining operations before depletion, amortization and non-recurring items	20,700		76,928	59,491		129,725
¹ Realized gain on sale of inventory relates to copper concentrate inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently sold. The realized portion of these gains have been added back to earnings from mining operations in the period the inventory was sold. ² Realized gain on processing of ore stockpiles relates to stockpile inventories held at March 25, 2024 that was written-up to fair value as part of the acquisition of control of Gibraltar, and subsequently processed. These write-ups have been added back to earnings from mining operations in the period the inventories were processed.

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Site operating costs per ton milled

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The Company discloses this measure, which has been derived from the Company’s financial statements and applied on a consistent basis, to provide assistance in understanding the Company’s site operations on a tons milled basis.

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(Cdn$ in thousands)	Q2 2025		Q1 2025		Q4 2024		Q3 2024		Q2 2024
Site operating costs (included in cost of sales)		86,067		68,917		100,495		107,712		79,804
Tons milled (thousands)		7,663		7,898		8,250		7,572		5,728
Site operating costs per ton milled	$	11.23	$	8.73	$	12.18	$	14.23	$	13.93

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Technical Information

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The technical information contained in this MD&A related to Florence Copper is based on the report titled “NI 43‑101 Technical Report – Florence Copper Project, Pinal County, Arizona” issued on March 30, 2023 with an effective date of March 15, 2023, which is available on SEDAR+. The Florence 2023 Technical Report was prepared under the supervision of Richard Tremblay, P. Eng., MBA, Richard Weymark, P. Eng., MBA, and Robert Rotzinger, P. Eng. Mr. Tremblay is employed by the Company as Chief Operating Officer, Mr. Weymark is employed by the Company as Vice President, Engineering, and Mr. Rotzinger is employed by the Company as Vice President, Capital Projects. All three are Qualified Persons as defined by NI 43‑101.

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The technical information contained in this MD&A related to Yellowhead is based on the report titled “Technical Report Update on the Yellowhead Copper Project, British Columbia, Canada” issued on July 10, 2025 with an effective date of June 15, 2025, which is available on SEDAR+. The Yellowhead 2025 Technical Report was prepared under the supervision of Richard Weymark, P. Eng., MBA. Mr. Weymark is employed by the Company as Vice President, Engineering and is a Qualified Person as defined by NI 43-101.

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Caution Regarding Forward-Looking Information

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This document contains “forward-looking statements” that were based on Taseko’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.

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Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These included but are not limited to:

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uncertainties about the future market price of copper and the other metals that we produce or may seek to produce;
changes in general economic conditions, the financial markets and in the market price for our input costs including due to inflationary impacts, such as diesel fuel, acid, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, and the continued availability of capital and financing;
inherent risks associated with mining operations, including our current mining operations at Gibraltar and our planned mining operations at Florence Copper, and their potential impact on our ability to achieve our production estimates;
uncertainties as to our ability to achieve reduced costs for Gibraltar (as defined below) and to otherwise control our operating costs without impacting our planned copper production;
our high level of indebtedness and its potential impact on our financial condition and the requirement to generate cash flow to service our indebtedness and refinance such indebtedness from time to time;
the increases in interest rates, by central banks may increase our borrowing costs and impact the profitability of our operations;
our ability to draw down on our financing arrangements for the construction of Florence Copper is subject to our meeting the required conditions for drawdown;
the amounts we are required to pay for our acquisition of Cariboo will increase with higher copper prices;
the risk of inadequate insurance or inability to obtain insurance to cover our business risks;
uncertainties related to the accuracy of our estimates of Mineral Reserves (as defined below), Mineral Resources (as defined below), production rates and timing of production, future production and future cash and total costs of production and milling;
the risk that we may not be able to expand or replace Mineral Reserves as our existing Mineral Reserves are mined;
the risk that the results from our development of Florence Copper will not meet our estimates of remaining construction costs, operating expenses, revenue, rates of return and cash flows from operations which have been projected by the technical report for Florence;
the risk of cost overruns or delays in our construction of the commercial facilities at Florence Copper, resulting in not commencing commercial production within our current projected timeline or within our current projected cost estimates;
uncertainties related to the execution plan for the construction of Florence Copper and the commencement of commercial operations resulting from inflation risk, supply chain disruptions, material and labour shortages or other execution risks;
our ability to comply with all conditions imposed under the APP and UIC permits for the construction and operation of Florence Copper;
the availability of, and uncertainties relating to, any additional financing necessary for the continued operation and development of our projects, including with respect to our ability to obtain any additional construction financing, if needed, to complete the construction and commencement of commercial operations at Florence Copper;
shortages of water supply, critical spare parts, maintenance service and new equipment and machinery or our ability to manage surplus water on our mine sites may materially and adversely affect our operations and development projects;
our ability to comply with the extensive governmental regulation to which our business is subject;
uncertainties related to our ability to obtain necessary title, licenses and permits for our development projects and project delays due to third party opposition;
uncertainties related to Indigenous people’s claims and rights, and legislation and government policies regarding the same;
our reliance on the availability of infrastructure necessary for development and on operations, including on rail transportation and port terminals for shipping of our copper concentrate production from Gibraltar, and rail transportation and power for the feasibility of our other British Columbia development projects;
uncertainties related to unexpected judicial or regulatory proceedings;
changes in, and the effects of, the laws, regulations and government policies affecting our exploration and development activities and mining operations;
potential changes to the mineral tenure system in British Columbia, which is undergoing reform for compliance with the Declaration Act (British Columbia);
our dependence solely on our 100% interest in Gibraltar for our revenues and our operating cash flows;
our ability to extend existing concentrate off-take agreements or enter into new agreements;
environmental issues and liabilities associated with mining including processing and stockpiling ore;
labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, industrial accidents, equipment failure or other events or occurrences, including third party interference that interrupt the production of minerals in our mines;
environmental hazards and risks associated with climate change, including the potential for damage to infrastructure and stoppages of operations due to extreme cold, forest fires, flooding, drought, earthquakes or other natural events in the vicinity of our operations;
litigation risks and the inherent uncertainty of litigation;
our actual costs of reclamation and mine closure may exceed our current estimates of these liabilities;
our ability to renegotiate our existing union agreement for Gibraltar when it expires in May 2027;
the capital intensive nature of our business both to sustain current mining operations and to develop any new projects including Florence Copper;
our ability to develop new mining projects may be adversely impacted by potential indigenous joint decision-making and consent agreements being implemented by the Government of British Columbia under the B.C. Declaration on the Rights of Indigenous Peoples Act;
our reliance upon key personnel;
the competitive environment in which we operate;
the effects of forward selling instruments to protect against fluctuations in copper prices and other input costs including diesel and acid;
the risk of changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates;
uncertainties relating to the war in Ukraine, the Israel-Hamas conflict and other future geopolitical events including social unrest, which could disrupt financial markets, supply chains, availability of materials and equipment and execution timelines for any project development;
recent changes to U.S. trade policies and tariff risks may adversely impact overall economic conditions, copper markets, supply chains, metal prices and input costs; and
other risks detailed from time-to-time in our annual information forms, annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators, and those risks which are discussed under the heading “Risk Factors”.

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For further information on Taseko, investors should review the Company’s annual Form 40-F filing with the United States Securities and Exchange Commission www.sec.gov and home jurisdiction filings that are available at www.sedarplus.ca, including the “Risk Factors” included in our Annual Information Form.

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