Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was CAD 244 million, the highest ever recorded by the company, driven by copper and molybdenum sales [15][16] - Net income for Q4 was CAD 4.5 million, or CAD 0.01 per share, with adjusted earnings of CAD 42 million, or CAD 0.11 per share [16] - Adjusted EBITDA for Q4 was CAD 116 million, significantly higher than CAD 56 million in Q4 2024 [16] - Cash flow from operations for Q4 was CAD 101 million, with CAD 72 million generated from Gibraltar [16][20] Business Line Data and Key Metrics Changes - Florence Copper began producing copper, with expectations of approximately 30-35 million pounds of copper production in 2026 [4][7] - Gibraltar produced 31 million pounds of copper in Q4, with copper head grades increasing to 0.26% and recoveries at 81% [8][9] - Molybdenum production reached 800,000 pounds, marking the highest production quarter in the history of the mine [9] Market Data and Key Metrics Changes - The average realized copper price in 2025 was CAD 4.61 per pound, benefiting from a weaker Canadian dollar [15] - Copper prices are currently approximately 25% higher than last year's average, supported by tight supply and strong demand from various sectors [11] Company Strategy and Development Direction - The company is focused on ramping up production at Florence Copper and expanding the wellfield, with plans to add 80-100 new wells annually [7][26] - Taseko is advancing projects like Yellowhead and New Prosperity, with Yellowhead expected to attract interest from potential partners due to its strong economics [12][35] - The company aims to prioritize deleveraging its balance sheet as cash flows from Florence Copper begin to materialize [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about cash flow growth due to higher production levels and copper price leverage [11] - The company is taking a conservative view on copper grades at Gibraltar, adjusting expectations based on geological findings [10][31] - Management highlighted the importance of safety and the tragic incident at Gibraltar, emphasizing a commitment to employee well-being [8] Other Important Information - Capital spending for Q4 was CAD 8 million, with total capital costs for the Florence facility at CAD 275 million, slightly over budget [19] - The company ended the year with a cash balance of CAD 188 million and a total liquidity of CAD 340 million [20] Q&A Session Summary Question: What should we expect for CapEx and stripping this year? - Management indicated that CapEx would be slightly less than CAD 80 million from the previous year due to reduced heavy stripping sequences [22] Question: How should we think about grade and throughput this year? - Management expects throughput to achieve design capacity of 85,000 tons per day, with a conservative estimate of grades potentially 5%-10% lower than the reserve grade [23] Question: What risks are being monitored during the ramp-up at Florence? - Management is focused on drilling performance and the need to add new wells as production increases [26][28] Question: What issues are being faced at the Connector pit in Gibraltar? - Management noted that high-grade zones were not realized as expected, requiring adjustments to the geological model [31] Question: What are the next steps for Yellowhead and New Prosperity? - Yellowhead is in the permitting phase with potential JV discussions, while New Prosperity requires consent from the Tilhqot'in Nation for further development [35][36]

Core Viewpoint - Short-term copper prices are fluctuating, but the outlook for copper prices is positive for 2026 due to ongoing supply-demand tightness [4]. Group 1: Market Overview - As of February 6, 2026, SHFE copper closed at 100,100 CNY/ton, down 3.45% from January 30, while LME copper closed at 13,060 USD/ton, down 0.08% [4]. - The market perceives a low probability of the Federal Reserve lowering interest rates in March 2026, which supports overall commodity sentiment [4]. Group 2: Inventory - Domestic copper social inventory increased by 4.0%, while LME copper inventory rose by 4.9% [5]. - As of February 6, 2026, domestic mainstream port copper concentrate inventory stood at 638,000 tons, down 5.2% from the previous week [5]. - Global electrolytic copper inventory totaled 1,021,000 tons, up 3.6% from January 30, with LME copper inventory at 183,000 tons, up 4.9% [5]. Group 3: Supply - The price difference between refined copper and scrap copper decreased by 504 CNY/ton this week [6]. - In October 2025, China's copper concentrate production was 137,000 tons, up 12.9% month-on-month but down 9.9% year-on-year [6]. - Global copper concentrate production in November was 1,923,000 tons, down 1.9% year-on-year and 0.6% month-on-month [6]. Group 4: Smelting - The TC spot price reached a new low this week, at -51.23 USD/ton, down 0.9 USD/ton from January 30 [7]. - In January 2026, China's electrolytic copper production was 1,179,300 tons, up 0.1% month-on-month and 16.3% year-on-year [7]. - In December 2025, electrolytic copper imports were 260,000 tons, down 4.0% month-on-month and 29.8% year-on-year [7]. Group 5: Demand - Cable manufacturing, which accounts for 31% of domestic copper demand, saw an increase in operating rate to 60.15%, up 0.69 percentage points from the previous week [8]. - Air conditioning production, which represents 13% of domestic copper demand, is projected to decline by 31.6% in February, 6.5% in March, and increase by 4.0% in April [8]. - Copper rod production, accounting for 4.2% of domestic copper demand, had a January operating rate of 50.86%, down 1.9 percentage points month-on-month but up 9.2 percentage points year-on-year [8]. Group 6: Futures - As of February 6, 2026, SHFE copper active contract positions decreased by 21.4% to 175,000 lots, placing the position at the 47th percentile since 1995 [9]. - COMEX non-commercial net long positions were 48,000 lots, down 1.2% from the previous week, at the 77th percentile since 1990 [9].

Core Viewpoint - The copper market is expected to remain tight in 2026, supporting upward price movement despite current demand pressures [2]. Supply and Demand - As of January 23, 2026, SHFE copper closed at 101,340 CNY/ton, up 0.57% from January 16, while LME copper closed at 13,129 USD/ton, up 2.54% [2]. - The TC spot price has reached a new low, indicating tight procurement of copper concentrate; cable enterprises' operating rates have increased week-on-week, but domestic social inventory continues to grow, which may suppress demand due to rising copper prices [2]. - The supply-demand outlook for 2026 remains tight, with continued optimism for rising copper prices [2]. Inventory - Domestic copper social inventory increased by 2.9%, while LME copper inventory rose by 16.9% [3]. - As of January 23, 2026, domestic mainstream port copper concentrate inventory stood at 719,000 tons, up 4.1% from the previous week [3]. - Global electrolytic copper inventory totaled 960,000 tons, up 6.2% from January 16; LME copper global inventory was 172,000 tons, up 16.9% [3]. Supply - The price difference between refined copper and scrap copper decreased by 526 CNY/ton week-on-week [4]. - In October 2025, China's copper concentrate production was 130,000 tons, down 8.1% month-on-month and 12.1% year-on-year; global copper concentrate production in November was 1.923 million tons, down 1.9% year-on-year and 0.6% month-on-month [4]. Smelting - The TC spot price reached -50 USD/ton, marking a historical low [5]. - In December 2025, China's electrolytic copper production was 1.1781 million tons, up 6.8% month-on-month and 7.5% year-on-year [5]. - In December 2025, electrolytic copper imports were 260,000 tons, down 4.0% month-on-month and 29.8% year-on-year; exports were 96,000 tons, down 32.7% month-on-month but up 473.4% year-on-year [5]. Demand - The cable industry accounts for approximately 31% of domestic copper demand, with cable enterprises' operating rate at 58.71%, up 2.72 percentage points week-on-week [6]. - The air conditioning sector, which represents about 13% of domestic copper demand, is projected to see production changes of +11%, -11.4%, and -2.4% from January to March 2026 [6]. - Copper rod production, accounting for about 4.2% of domestic copper demand, had a brass rod operating rate of 52.74%, up 2.56 percentage points month-on-month but down 3.40 percentage points year-on-year [6]. Futures - As of January 23, 2026, the SHFE copper active contract position increased by 6.4% week-on-week, with a total position of 231,000 lots [7]. - The COMEX non-commercial net long position was 53,000 lots, down 1.6% week-on-week [7].

Group 1 - Copper prices have unexpectedly surged, rising over $2,410 per ton since mid-October 2022, with recent prices reaching $13,238 per ton [2] - The increase in copper prices is attributed to U.S. government actions leading to a significant rise in copper imports for stockpiling rather than demand, particularly due to tariffs on semi-finished copper products [2] - COMEX copper inventories have increased to over 503,000 tons, compared to less than 100,000 tons a year ago, indicating a supply surplus [2] Group 2 - Analysts express skepticism about the sustainability of current copper prices, citing a disconnect from tariffs, macroeconomic conditions, and fundamental market realities [3] - Concerns about supply shortages outside the U.S. and speculative interest have driven prices up, but these factors are losing momentum, and macroeconomic risks remain [3] - The net long positions in the LME are nearing record levels, suggesting potential volatility in prices as market dynamics shift [4] Group 3 - Demand from China, which accounts for 58%-60% of global copper consumption, is expected to grow only slightly by 0.7% in 2026, compared to a 2.6% growth rate in the previous year [5] - Global demand growth is projected at 2.3% for 2026, lower than the 4.1% growth expected in 2025, reflecting economic slowdowns [5] - Nornickel forecasts a slight oversupply in the copper market, estimating a surplus of 11.7 million tons in 2025 and a similar surplus in 2026 [6] Group 4 - The surge in copper prices has incentivized mining companies and exploration firms, leading to new resource discoveries and expansion opportunities despite high interest rates [7] - Countries like Oman are reviving copper mining after years of neglect, while Russian copper projects continue to receive financing despite previous sanctions [7] Group 5 - China's copper industry faces three main challenges: increasing reliance on foreign resources, overcapacity in the midstream processing sector, and suppressed downstream demand due to high copper prices [8]