VANCOUVER, May 12 /CNW/ --
VANCOUVER, May 12 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE Amex:
TGB) ('Taseko' or the 'Company') has purchased put options on its
remaining 2011 copper production to protect its minimum 2011 revenue
stream.
Russell Hallbauer, President and CEO of Taseko, stated; 'Copper prices
have averaged approximately $4.25/lb over the last 4 months, but the
price has experienced extreme volatility on a day over day, and week
over week basis. We believe it is prudent financial management, while
we are working on our numerous projects, that we guarantee a minimum
revenue stream on our Gibraltar production by purchasing puts.
The put structure mechanism is the best of both worlds, like insurance,
it allows the Company to predict its minimum cash operating profit
based off of our historical cost structure, protecting the downside
risk should something unforeseen happen in world metal markets, while
allowing us to sell production at higher prices if the opportunity
presents itself.
The various puts we have entered into have a cost of approximately 3.5%
of the copper selling price which, in turn, insures that we will
receive a minimum of $3.61/lb for all of our remaining 2011 copper
production.'
Russell Hallbauer
President and CEO
No regulatory authority has approved or disapproved of the information
contained in this news release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
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.
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:
-- uncertainties and costs related to the Company's exploration
and development activities, such as those associated with
continuity of mineralization or determining whether mineral
resources or reserves exist on a property;
-- uncertainties related to the accuracy of our estimates of
mineral reserves, mineral resources, production rates and
timing of production, future production and future cash and
total costs of production and milling;
-- uncertainties related to feasibility studies that provide
estimates of expected or anticipated costs, expenditures and
economic returns from a mining project;
-- uncertainties related to our ability to complete the mill
upgrade on time estimated and at the scheduled cost;
-- uncertainties related to the ability to obtain necessary
licenses permits for development projects and project delays
due to third party opposition;
-- 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, particularly laws,
regulations and policies;
-- changes in general economic conditions, the financial markets
and in the demand and market price for copper, gold and other
minerals and commodities, such as diesel fuel, 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;
-- the effects of forward selling instruments to protect against
fluctuations in copper prices and exchange rate movements and
the risks of counterparty defaults, and mark to market risk;
-- the risk of inadequate insurance or inability to obtain
insurance to cover mining risks;
-- the risk of loss of key employees; 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;
-- environmental issues and liabilities associated with mining
including processing and stock piling ore; and
-- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which
we operate mines, or environmental hazards, industrial
accidents or other events or occurrences, including third party
interference that interrupt the production of minerals in our
mines.
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.com and home jurisdiction filings that are available at www.sedar.com.
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