Taseko Mines Limited (AMEX:TGB) Q2 2023 Earnings Call Transcript

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Alex Terentiew: Okay. All right. Makes sense. Yes, that’s it from me. Thank you.

Operator: Your next question comes from Alex Bedwany with Canaccord Genuity. Please go ahead.

Alex Bedwany: Good day guys, and thanks for taking the call. Just two questions for me. First one is, are you concerned at all with mill availability given the rates over the last three quarters? So I obviously acknowledge that the fourth quarter was affected by severe weather. And the second one is along the lines of financing. So obviously you’ve expanded the headroom on the revolver and you’ve got the ATM facility there. You’re also considering a royalty. How do you sort of think that these things will move once you get the permit? Will you be drawing down on the – on all of the revolver? And will that happen in tandem with the ATM facility? Or are they independent of each other?

Richard Tremblay: Yes, Alex, for the mill availability question, the downtime that we’ve incurred here the first half of the year has really been focused in the grinding circuit and dealing with some maintenance and alignment issues that we had going on in the grinding circuit. We have those resolved now and we’re continuing to monitor closely as we go forward. But all indications from our performance in June and July is we should be back to normal kind of downtime incurred, downtime events in the mill, which mill availability then is going to be in line with kind of our expectations. So don’t expect that to continue. Long answer, but don’t expect that to continue.

Stuart McDonald: Yes, maybe just – maybe I can just speak briefly on the financing. The way we’re thinking about it right now. Alex is Stuart speaking here. We’ve got 75 million committed from Mitsui and Bank of America, and it’s a 230 million U.S. of remaining spend. We’re looking to raise something in the range of a US$100 million of project level financings give or take. And that’s – as I noted, that’s as we’ve been talking about for a while, it’s going to be a combination of royalties and project debt. I think we’re making progress on those discussions and we’re optimistic. We’ll have some announcements soon on that. So that’s 175, I think out of the 230, I think the last or would be if we’re successful.

The last piece is going to come down from the corporate level from Taseko over the last 50 million or 60 million. And as you noted, we have the revolving credit facility. We have 180 million Canadian of available liquidity right now and cash flow from Gibraltar and then we do have the ATM there as a backstop as well. It’s not in our – it’s not our intention to be using that as a primary funding source at this time and we haven’t drawn it yet. So yes, that’s kind of how we’re thinking about the total package. In terms of the order of how we spend money, I think that’ll come down to how the final financing negotiations play out at Florence in terms of whose capital is going in first. But we’re – yes, we’re confident that the money will be there and that we’re in a strong financial position for us.

Alex Bedwany: Great. Okay, thanks Stuart and Richard.

Operator: There are no further questions at this time. Please proceed.

Brian Bergot: Okay. Thank you. Thanks, operator. Thanks everyone again for joining and enjoy the rest of your summer and we’ll talk to you in the fall. Thanks.

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

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