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To: Veteran98 who wrote (155374)	4/24/2009 10:48:23 AM
From: Veteran98	Respond to of 313882

Daily Letter Summary 24 April 2009 METALS AND MINING Taseko Mines Limited \| Orest Wowkodaw, CA, CFA, 1.416.869.3092 TKO : TSX : 1.61 \| 272.2M \| Buy , Target C$2.50 • Updating estimates for equity financing, Q1/09 production results, and hedging program; reiterate BUY rating and raising target to C$2.50 Event We are resuming research coverage of Taseko Mines following the closing of the company’s recent $23.0 million equity financing. We have also updated our estimates to reflect our revised commodity price deck issued on April 6, the Q1/09 production results, and the recently announced copper hedging program. Impact Positive. Action We are reiterating our BUY recommendation and increasing our target price to C$2.50 (from C$2.25). Our revised C$2.50 target is based on a 2010 EV/EBITDA multiple of 4.0x + $0.005/lb of in-situ value for the company’s large but undeveloped Prosperity project. With the company’s balance sheet no longer stressed, coupled with the markedly improved operating cost profile at Gibraltar, we continue to rate Taseko a BUY given the company’s attractive relative valuation and impressive near-to-medium term planned production growth. Valuation Taseko is trading at 3.2x our 2010E CFPS estimate and at a 47.6% discount to our revised 10% NPV of C$3.07 per share, which compares to our mid-cap producer coverage universe of 3.3x, and a 12.6% discount to NPV. Metals