THOMPSON CREEK ANNOUNCES FIRST QUARTER 2011 RECORD PRODUCTION OF 10.3 MILLION POUNDS OF MOLYBDENUM AND APPROVES MT.
MILLIGAN CAPITAL EXPENDITURE BUDGET
NYSE: TC
TSX: TCM, TCM.WT
TSX-V: TRX.WT
DENVER, May 6 /CNW/ - Thompson Creek Metals Company Inc.
("Company" or
"Thompson Creek"), a growing, diversified North American mining
company, today announced financial results for the three months ended
March 31, 2011, prepared in accordance with United States generally
accepted accounting principles ("US GAAP").
All dollar amounts are in
United States ("US") dollars unless otherwise indicated.
Financial Highlights:
Revenue for the quarter ended March 31, 2011 was $206.7 million, up 62% from
$127.8 million for the first quarter of 2010.
Net Income for the quarter ended March 31, 2011 was $128.9 million, or $0.78 per
basic and $0.73 per diluted share, which included a non-cash unrealized
gain on common stock purchase warrants of $66.0 million, or $0.40 per
basic and $0.37 per diluted share. Net income for the quarter ended
March 31, 2010 was $1.1 million, or $0.01 per basic and diluted share,
which included a non-cash unrealized loss on common stock purchase
warrants of $24.5 million, or $0.17 per basic and $0.16 per diluted
share.
Non-GAAP Adjusted Net Income for the quarter ended March 31, 2011 (excluding the non-cash unrealized
gain on the warrants) was $62.9 million, or $0.38 per basic and $0.36
per diluted share. Non-GAAP adjusted net income for the quarter ended
March 31, 2010 (excluding the non-cash unrealized loss on the warrants)
was $25.6 million, or $0.18 per basic and $0.17 per diluted share.
The Companys net income continues to be affected by the previously
disclosed requirement under US GAAP to account for the Companys
outstanding common stock warrants as a derivative liability, with
changes in the fair market value recorded in net income.
Molybdenum Production for the quarter ended March 31, 2011 was a new quarterly record of 10.3
million pounds, up 25% from 8.3 million pounds in the first quarter of
2010.
Non-GAAP Average Cash Cost Per Pound Produced for the quarter ended March 31, 2011 was $5.37 per pound, compared to
$5.36 per pound for the first quarter of 2010.
Cash Flow From Operations for the quarter ended March 31, 2011 was $76.6 million, up 200% from
$25.6 million for the first quarter of 2010.
Capital Costs incurred for the quarter ended March 31, 2011 were $121.4 million, comprised of
$10.1 million of capital costs for the mines, the Langeloth Facility
and corporate, and $51.9 million and $59.4 million of capital costs for
the mill expansion project at the Endako Mine (75% share) and the
development of Mt.
Milligan, respectively.
The capital costs for the
first quarter of 2011 include amounts accrued of $28.5 million at March
31, 2011; therefore, capital expenditures for the first quarter of 2011
were $92.9 million.
Total Cash and Cash Equivalents at March 31, 2011 were $303.0 million, compared to $316.0 million as of
December 31, 2010. Total debt as of March 31, 2011 was $20.5 million,
compared to $22.0 million as of December 31, 2010.
"Thompson Creek achieved excellent financial performance in the first
quarter of 2011, mainly as a result of increased production, sales
volumes and molybdenum prices," said Kevin Loughrey, Chairman and Chief
Executive Officer of Thompson Creek.
"The Company produced a record
10.3 million pounds of molybdenum, and sold a record 10.1 million
pounds of molybdenum from its mines for an average realized molybdenum
sales price for the quarter of $17.39, up 20% from $14.50 in the first
quarter of 2010. We anticipate that over the remainder of 2011, the
price for molybdenum oxide will continue to be volatile, but will
gradually increase with the expected improvement in worldwide
molybdenum bearing steel production," added Mr.
Loughrey.
The Company also announced that it has approved the increased capital
expenditure budget for the Mt.
Milligan project in British Columbia
from C$915 million to C$1.265 billion.
The C$350 million increase is
attributable to design improvements, increases in labor costs, the cost
of steel, concrete and other materials, and changes in the foreign
exchange rate.
"Mt.
Milligan is an important building block for our Company, both in
terms of growth and diversification," said Kevin Loughrey.
"We believe
that, notwithstanding the capital increase, the economics for the
project are still extremely attractive, and our liquidity and capital
resources are sufficient to complete the construction of the Mt.
Milligan mine.
We expect to commence production in late 2013 and
produce approximately 81 million pounds of copper and 194,000 ounces of
gold annually," added Mr.
Loughrey.
At March 31, 2011, Thompson Creek had working capital of $392.7 million,
including $303.0 million of cash, cash equivalents and short-term
investments, $106.8 million of receivables, and $20.5 million of debt
related to equipment financings.
The Company intends to fund the
remaining mill expansion costs at the Endako Mine and the Mt.
Milligan
development costs from a combination of cash on hand, cash flow from
operations, funds from various financing facilities, the remaining
proceeds from the gold stream transaction with Royal Gold and expected
funds from the exercise of warrants that expire in October 2011.
Thompson Creek may consider additional debt financings.
The timing of
any financing transaction will depend on market conditions.
The Company
does not currently intend to fund Mt.
Milligan development costs
through the issuance of equity or equity-linked securities.
Selected Consolidated Financial and Operational Information
(US$ in millions except per share and per pound amounts - unaudited)
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Three Months Ended
March 31,
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2011
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2010
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Financial
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Revenues
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Molybdenum sales
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$
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202.4
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$
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124.0
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Tolling, calcining and other
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4.3
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3.8
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206.7
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127.8
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Costs and expenses
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Cost of sales
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Operating expenses
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98.0
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76.3
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Depreciation, depletion and amortization
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18.4
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11.0
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Total cost of sales
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116.4
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87.3
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Selling and marketing
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2.4
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1.5
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Accretion expense
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0.5
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0.4
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General and administrative
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7.9
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5.8
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Exploration
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3.6
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1.7
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Total costs and expenses
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130.8
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96.7
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Operating income
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75.9
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31.1
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Other (income) and expense
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(65.0)
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25.1
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Income before income and mining taxes
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140.9
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6.0
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Income and mining taxes
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12.0
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4.9
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Net income
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$
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128.9
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$
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1.1
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Net income per share
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Basic
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$
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0.78
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$
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0.01
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Diluted
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$
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0.73
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$
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0.01
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Cash generated by operating activities
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$
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76.6
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$
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25.6
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Adjusted non-GAAP Measures:(1)
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Adjusted net income(1)
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$
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62.9
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$
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25.6
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Adjusted net income per share - basic(1)
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$
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0.38
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$
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0.18
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Adjusted net income per share - diluted(1)
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$
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0.36
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$
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0.17
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Operational Statistics
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Mined molybdenum production (000s lb)(2)
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10,329
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8,269
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Cash cost ($/lb produced)(3)
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$
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5.37
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$
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5.36
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Molybdenum sold (000s lb):
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Thompson Creek and Endako Mine product
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10,060
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6,735
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Purchased and processed product
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1,580
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1,820
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11,640
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8,555
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Average realized sales price ($/lb)(1)
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$
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17.39
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$
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14.50
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_____________________________
(1) See "Non-GAAP Financial Measures" for the definition and calculation
of these non-GAAP measures.
(2) Mined production pounds reflected are molybdenum oxide and high
performance molybdenum disulfide ("HPM") from our share of production
from the mines; excludes molybdenum processed from purchased product.
(3) Weighted-average of Thompson Creek and Endako Mine (75% share) cash
costs (mining, milling, mine site administration, roasting and
packaging) for molybdenum oxide and HPM produced in the period,
including all stripping costs.
Cash cost excludes: the effect of
purchase price adjustments, the effects of changes in inventory,
stock-based compensation, other non-cash employee benefits and
depreciation, depletion, amortization and accretion.
The cash cost for
Thompson Creek Mine, which only produces molybdenum sulfide on site,
includes an estimated molybdenum loss, an allocation of roasting and
packaging costs from the Langeloth Facility, and transportation costs.
See "Non-GAAP Financial Measures" for additional information.
Summary of Quarterly Results
(US$ in millions except per share and per pound amounts — unaudited)
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Mar 31
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Dec 31
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Sep 30
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Jun 30
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Mar 31
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Dec 31
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Sep 30
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Jun 30
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2011
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2010
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2010
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2010
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2010
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2009
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2009
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2009
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Financial
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Revenues
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$
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206.7
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$
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156.8
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$
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161.8
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$
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148.4
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$
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127.8
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$
|
106.2
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$
|
114.4
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$
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74.0
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Operating income (loss)
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$
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75.9
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$
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47.4
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$
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45.6
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$
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50.3
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$
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31.1
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$
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15.8
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$
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32.4
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$
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(0.2)
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Net income (loss)
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$
|
128.9
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$
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(45.0)
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$
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31.1
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$
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126.5
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$
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1.1
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$
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26.0
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$
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(1.4)
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$
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(89.3)
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Income (loss) per share:
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- basic
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$
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0.78
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$
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(0.28)
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$
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0.22
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$
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0.90
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$
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0.01
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$
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0.19
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$
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(0.01)
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$
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(0.73)
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- diluted
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$
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0.73
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$
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(0.28)
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$
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0.22
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$
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0.87
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$
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0.01
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$
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0.18
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$
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(0.01)
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$
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(0.73)
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Cash generated by operating activities
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$
|
76.6
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$
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31.6
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$
|
59.0
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$
|
41.2
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$
|
25.6
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|
$
|
38.2
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|
$
|
24.2
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|
$
|
6.1
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|
|
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Adjusted non-GAAP Measures:(1)
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Adjusted net income (loss)(1)
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|
$
|
62.9
|
|
$
|
34.4
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$
|
51.6
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$
|
51.7
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$
|
25.6
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$
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20.4
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