Taseko Reports Second Quarter 2014 Results

Press Release –

JUL 30, 2014

This release should be read with the Company’s Financial Statements and Management Discussion & Analysis (“MD&A”), available at www.tasekomines.comand filed on www.sedar.com. Except where otherwise noted, all currency amounts are stated in Canadian dollars. Taseko’s 75% owned Gibraltar Mine is located north of the City of Williams Lake in south-central British Columbia. Production volumes stated in this release are on a 100% basis unless otherwise indicated.

July 30, 2014, Vancouver, BC – Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) (“Taseko” or the “Company”) reports the results for the three and six months ended June 30, 2014.

Second Quarter Highlights

Second quarter 2014 earnings from mining operations before depletion and amortization* increased to $26.7 million from $19.4 million in the first quarter 2014, a 38% increase over the first quarter and 107% increase over the second quarter 2013.
Cash flows from operations were $13.6 million, and this was achieved despite a $6.8 million negative working capital adjustment related to timing of cash receipts from customers.
Revenues for the second quarter 2014 were $107.3 million, up 57% from the same period in 2013.
The Gibraltar Mine produced 38.5 million pounds of copper and 667 thousand pounds of molybdenum in the second quarter, a 37% and 100% increase, respectively, over second quarter 2013.
Total sales for the quarter were 38.7 million pounds of copper (100% basis), 39% higher than the second quarter 2013.

Russell Hallbauer, President and CEO of Taseko, commented, “Operational improvements at Gibraltar are now being reflected in our financial performance. The increase in operating profit is a combination of reduced operating costs and higher copper production in the second quarter. Gibraltar total operating costs decreased to $2.12 per pound in the second quarter, 15% lower than the first quarter. This cost reduction is not only sustainable, but can be improved, especially as the copper grade and copper recoveries trend higher in the second half of 2014. Costs are also benefitting from a significantly higher by-product credit due to increased molybdenum production from the new molybdenum plant as well as a strengthened molybdenum price. We ended the quarter with a strong cash balance of $77 million. We spent $17 million in the quarter on principal and interest payments on our long-term debt.”

“In addition, we continue to invest in our Aley Project, now nearing completion of the metallurgical test work”, Mr. Hallbauer added. “During the quarter, we successfully achieved the targeted niobium recovery rate, which is now repeatable in lock-cycle tests. The project team is currently working on the final step of the process which is the treatment of the niobium concentrate.”

“Following the decision by one of our independent Board members, Wayne Kirk, to not stand for re-election at the AGM, we decided to change the composition of our Board of Directors by replacing a non-independent director, Scott Cousens, with an independent director who also represents a significant shareholder of the Company. George Ireland, who is the Chief Investment Officer and Managing Member of Geologic Resource Partners LLC, has joined the Board bringing over 30 years of experience in all aspects of the resource sector to Taseko. I believe having a major shareholder representative on our Board rounds out the skillset of the existing members. I would like to thank Scott for the many years he served as a Taseko Director as he was instrumental in building Taseko to the company it is today.” concluded Mr. Hallbauer.