Good morning, and welcome everyone to Taseko's 2022 Year-End Earnings Conference Call. [Operator Instructions] I would like to turn the conference over to Mr. Bergot. You may begin your conference.

Thank you, Sergio. Welcome, everyone, and thank you for joining Taseko's Fourth Quarter and Full Year 2022 Conference Call. The news release and regulatory filing announcing our financial and operational results was issued yesterday after market close and is available on our website at tasekomines.com and on SEDAR. I am joined today in Vancouver by Taseko's President and CEO, Stuart McDonald; Taseko's Chief Financial Officer, Bryce Hamming; and our Senior VP, Operations, Richard Tremblay. As usual, before we get into opening remarks by management, I would like to remind our listeners that our comments and answers to your questions will contain forward-looking information. This information, by its nature, is subject to risks and uncertainties that may cause the stated outcome to differ materially from the actual outcome. For further information on these risks and uncertainties, I encourage you to read the cautionary note that accompanies our fourth quarter MD&A and the related news release, as well as the risk factors particular to our company. I would also like to point out we will use various non-GAAP measures during the call. You can find explanations and reconciliations regarding these measures in the related news release. Following opening remarks, we will open the phone lines to analysts and investors for questions. I will now turn the call over to Stuart.

Okay. Thank you, Brian, and good morning, everyone. Thanks for joining our fourth quarter earnings call. I'll start with some high-level comments about the quarter and a project update, and then I'll turn it over to Bryce for some specifics on our recent financials. In the fourth quarter, we continued to benefit from a strong copper price environment, the price averaging about $3.65 per pound, modestly higher than the average price for Q3. But the trend was upwards, ending the year at $3.80 per pound and today sitting right around $4. Molybdenum prices have also risen dramatically over the last 6 months and today are sitting at around $37 a pound. That's double the price of a year ago, and moly continues to represent an important byproduct credit at Gibraltar, about $0.40 a pound in Q4. We generated adjusted EBITDA of $35 million in the fourth quarter and for the full year $110 million. The fourth quarter was a slight improvement over the third quarter, and the majority of our EBITDA for the year was generated in the second half as head grade and production in the first half of the year were unusually low. Operating cash flows for the year were $82 million, and Bryce will provide some further details on the cash flows and earnings in a minute. In terms of Gibraltar operations, we had a strong start to the quarter, but were hit with mill availability issues in December. The main issue resulted from a site-wide power outage that we press released in January. This was caused by extreme weather conditions. And although the actual power outage only lasted 24 hours, temperatures at minus 35 Celsius caused frozen lines in the mill and nearly a week of downtime. The impact of that and mining dilution resulted in…

Thank you, Stuart. Good morning, everyone. I will now provide some additional color on our fourth quarter and annual financial results. Copper sales for the fourth quarter were 26 million pounds on a 100% basis at an average realized price of $3.66 per pound. For the year, Gibraltar sold 101 million pounds at an average realized price of $3.96 per pound. Our proportionate share of sales generated revenue of $392 million for the year. In fact, it is the second highest revenue we have had as a company after a record year last year. It's actually very comparable to 2021 revenues when you account for the fact that this reported revenue for 2022 didn't include proceeds from our copper puts, which were $23 million in 2022. 2022 was a tale of 2 years in 1, with the first half benefiting from record copper prices that peaked at over $5 in March, followed by a sharp drop in mid-June with prices holding in the mid-$3 range in the second half of 2022. This volatility we saw underpins our long-term strategy of purchasing copper price protection. We don't try to time it perfectly, but instead be consistent in our put purchases and aim to execute trades when the copper price is recovering, like we did in June of last year and in February of this year. This consistency protects if and when copper pulls back, even as it is today. We have 72 million pounds of copper protected for 2023 at a put price of $3.75 per pound, and we will look to add to this as we prepare for further capital programs at Florence. The story in '22 was all about cost and the impact of inflation on our business. We saw total site spending which includes capitalized strip for Taseko's…

[Operator Instructions] Your first question comes from Craig Hutchison from TD Securities.

Just a question on the Sojitz transaction. Is that retroactive to the start of the year?

Yes, that will be -- like we signed the agreement, but we still have to close. It will be effective as of the close. That's how I view it.

Do you expect it to close this quarter or --

Yes, we do.

Okay. And then maybe a second question on that. Will that trigger any change to the accounting that you guys have? Right now, I think you use proportional accounting. Would that make any change given your increased interest?

Yes, Craig, this is Bryce. Yes, the accounting, we're still reviewing that. I think our expectation at this stage is that it's going to be proportionate consolidation as we're only requiring 50% of Cariboo and therefore, not control. So we expect to be proportionately consolidating 87.5% going forward.

Okay. Perfect. And then just for Gibraltar, in terms of -- you mentioned there will be a higher degree of capitalized stripping this year. So C1 costs will go down. But just in terms of overall costs, can you give us a sense of maybe just what you're thinking in terms of total capital, including stripping, sustaining and other capital projects at Gibraltar?

Yes. So it's Bryce again. So I think for this upcoming year, when we look at total capital, I think what's first and foremost is the crusher work that we're doing. That was a program we started last year. In our CapEx, you see there that we incurred about just shy of $25 million on a 100% basis. And we have about that amount to go forward for the crusher move and some ancillary projects there. So that's, again, on a 100% basis Canadian for this upcoming year. That's a project we're committed to. I think sustaining capital will be a similar level as last year is what we saw in 2022. And then I think as we said, the capitalized strip will be a bit higher. Last year was a bit lower. So I think we're going to be another, call it, $0.15 per pound or $0.20 a pound there in capitalized strip.

Your next question comes from Alex Terentiew from Stifel.

I just had a follow-up question similar to Craig's there on the cost. At the beginning of the call you mentioned a bunch of on-site operating costs, different allocation between operating and capitalized strip. Can you just remind me kind of what you said there about those numbers? I just wanted to -- just given that Florence is hopefully around the corner and the additional stake in Gibraltar, I just wanted to take a look at my numbers to make sure I kind of got good handle on cash flow expectations for this year?

Yes, Alex, I'll take that one. It's Stuart speaking. Yes, generally, when we look at our site spending, we think about it in terms of the total of operating -- site operating cost and capitalized strip. And that number is going to continue at basically around the same level that you've seen in recent months that you saw in Q4 in our MD&A. Now as we noted that there is an allocation issue there between what's capitalized and what's operating, we think a higher proportion of that will be capitalized this year. But just thinking about cash flow, that's the way you should be thinking about it at the Gibraltar level.

Okay, makes sense. And then Florence, I think you said you spent about $100 million last year. Is that money that was actually spent? Or is it just kind of orders placed for that amount?

Yes, that was -- first of all, that was in Canadian funds. But that was the total spend last year. We don't have a lot left from that program, just little bit of equipment here and there, but nothing significant. Most of it's been spent, so that was CAD 100 million. And most of that was for the equipment. There were some site cost in there as well.

[Operator Instructions]

Okay, it sounds like there's not any other questions at this time. So I think we'll wrap it up there. And yes, look forward to talking to you all again next quarter. Thanks, everyone. Bye now.

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