NYSE: TC
TSX: TCM
TSX-V:TRX.WT
- GAAP net income of $292.1 million, or $1.73 per diluted share
- Non-GAAP adjusted net income of $122.9 million, or $0.73 per diluted share
- Cash flow from operations of $202.7 million
DENVER, CO, Feb.
27, 2012 /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
and year ended December 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.
The Company met its 2011 production and cost guidance, despite lower production and higher costs in the second half of the year, primarily due to the planned mine pit sequencing, increased waste stripping activities, and lower-grade ore and mill recovery at its Thompson Creek mine. Although operating results for the Thompson Creek mine were much lower in the second half of the year, total annual production from the mine was 21.4 million pounds of molybdenum with average cash costs for the year of $6.66 per pound. Production has moved into a new phase of higher-grade ore and the Thompson Creek mine is now on track to achieve previously announced 2012 production guidance of 16 - 17 million pounds of molybdenum.
Thompson Creek made significant progress in advancing its growth
projects throughout 2011. Construction of the Endako mill expansion
project was near completion by year end, a staged start-up of the mill
began in early January, and commercial production was reached on
February 1, 2012. Production will continue to ramp up through the
first quarter, with full production anticipated in the second quarter
of 2012. The Endako mine is expected to meet previously announced 2012
production guidance of 10 - 11 million pounds of molybdenum.
Construction and development of the Mt.
Milligan copper-gold mine
remained on schedule in 2011, with commissioning and start-up expected
to commence in the third quarter 2013 and commercial production of
copper and gold in the fourth quarter of 2013. "Once operational, the
Mt.
Milligan mine is expected to produce approximately 81 million
pounds of copper in concentrate and 194,000 oz of gold in concentrate
per year, which we anticipate will contribute significantly to the
Companys revenue, net income and cash flow," said Kevin Loughrey,
Chairman and Chief Executive Officer.
The Company produced 28.3 million pounds of molybdenum in 2011 and sold 31.8 million pounds of molybdenum from its mines, for an average realized molybdenum sales price per pound for the year of $16.28, up from $15.67 in 2010. While the average realized molybdenum price as reported by Metals Week declined from $15.72 per pound in 2010 to $15.49 per pound in 2011, the Companys average realized molybdenum sales price in 2011 increased 3.9% from its 2010 average.
"We are encouraged by the recent upturn in the molybdenum price over the
past several weeks and continue to expect a sustained recovery in
molybdenum demand and prices in the medium-term as the world economy
recovers," added Mr.
Loughrey.
Financial Highlights:
Revenue for the fourth quarter of 2011 was $116.7 million, compared to $156.8 million for the same period in 2010. Sales volume for the fourth quarter of 2011 was 8.0 million pounds of molybdenum, compared to 9.5 million pounds for the same period in 2010. The average realized sales price for molybdenum in the fourth quarter of 2011 was $14.08 per pound, compared to $16.05 per pound for the same period in 2010.
Revenue for 2011 was $669.1 million, compared to $594.8 million in 2010. Sales volume for 2011 was 40.1 million pounds of molybdenum, compared to 36.9 million pounds in 2010. The average realized sales price for molybdenum in 2011 was $16.28, compared to $15.67 in 2010.
Foreign Exchange Gains for the fourth quarter of 2011 were $8.7 million, or $0.05 per basic
and diluted share, most of which were unrealized gains.
The foreign
exchange gains were the result of the strengthening of the US$ against
the C$.
This compares to a foreign exchange loss of $0.6 million, or
zero cents per basic and diluted share, for the fourth quarter of 2010.
Losses on foreign exchange for 2011 were $13.1 million, or $0.08 per
basic and diluted share, most of which were unrealized losses.
This
compares to foreign exchange gains of $7.4 million, or $0.05 per basic
and diluted share in 2010.
Net Income for the fourth quarter of 2011 was $0.8 million, or zero cents per basic and diluted share, compared to a net loss of $45.0 million, or $0.28 per basic and diluted share for the same period in 2010. Net income for the fourth quarter of 2011 included a non-cash unrealized gain on common stock purchase warrants of $0.8 million, or zero cents per basic and diluted share. Net loss for the fourth quarter of 2010 included a non-cash unrealized loss on common stock purchase warrants of $79.4 million, or $0.50 per basic and $0.47 per diluted share.
Net income for 2011 was $292.1 million, or $1.75 per basic and $1.73 per diluted share, compared to net income of $113.7 million, or $0.79 per basic and $0.75 per diluted share in 2010. Net income for 2011 included a non-cash unrealized gain on common share purchase warrants of $169.2 million, or $1.01 per basic and $1.00 per diluted share. Net income for 2010 included a non-cash unrealized loss on common stock purchase warrants of $49.6 million, or $0.34 per basic and $0.33 per diluted share.
Non-GAAP Adjusted Net Income for the fourth quarter of 2011 (excluding the non-cash unrealized gain on the warrants) was zero, compared to non-GAAP adjusted net income for the fourth quarter of 2010 (excluding the non-cash unrealized loss on warrants) of $34.4 million, or $0.22 per basic and $0.20 per diluted share.
Non-GAAP adjusted net income for 2011 (excluding the non-cash unrealized gain on the warrants) was $122.9 million, or $0.74 per basic and $0.73 per diluted share. Non-GAAP adjusted net income for 2010 (excluding the non-cash unrealized loss on warrants) was $163.3 million, or $1.13 per basic and $1.07 per diluted share.
Molybdenum Production for the fourth quarter of 2011 was 4.3 million pounds of molybdenum, compared to 9.3 million pounds for the same period in 2010. Molybdenum production in 2011 was 28.3 million pounds, compared to 32.6 million pounds in 2010. The overall lower production for 2011 was primarily the result of lower production and higher costs in the second half of the year associated with the planned mine pit sequencing, increased waste stripping activities and lower-grade ore and mill recovery rate at the Thompson Creek mine.
Average Cash Cost per Pound Produced for the fourth quarter of 2011 was $12.69 per pound, compared to $5.81
per pound for the same period in 2010.
Average cash cost per pound
produced in 2011 was $7.94 per pound, compared to $6.07 per pound in
2010. The increase in the 2011 fourth quarter cash cost per pound
compared to the fourth quarter of 2010 was primarily the result of
higher costs and lower production at the Thompson Creek mine, as
explained above.
Cash Flow from Operations for the fourth quarter of 2010 was $21.1 million, compared to $31.6 million for the same period in 2010. Cash flow from operations in 2011 was $202.7 million, up 28.8% from $157.4 million in 2010.
Capital Costs incurred for 2011 were $803.4 million, comprised of $524.7 million for the
development of Mt.
Milligan, $216.2 million for the mill expansion
project at the Endako mine (our share), and $62.5 million of other
capital costs for the mines, the Langeloth facility and Corporate
combined. The capital costs for 2011 included changes in amounts
accrued of $108.6 million and non-cash capital lease activity of $8.2
million; therefore, cash used for capital expenditures for the year was
$686.6 million.
Total Cash and Cash Equivalents at December 31, 2011 were $294.5 million, compared to $316.0 million as of December 31, 2010. Total debt, including capital lease obligations, as of December 31, 2011 was $374.9 million, compared to $22.0 million as of December 31, 2010.
Selected Consolidated Financial and Operational Information
(US$ in millions except per share and per pound amounts)
|
Three Months ended December 31, |
Years ended December 31, | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2009 | ||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Financial | ||||||||||||||||||
| Revenue | ||||||||||||||||||
| Molybdenum sales | $ | 112.9 | $ | 152.0 | $ | 651.9 | $ | 578.6 | $ | 361.9 | ||||||||
| Tolling, calcining and other | 3.8 | 4.8 | 17.2 | 16.2 | 11.5 | |||||||||||||
| 116.7 | 156.8 | 669.1 | 594.8 | 373.4 | ||||||||||||||
| Costs and expenses | ||||||||||||||||||
| Operating expenses | 110.1 | 75.6 | 400.4 | 315.5 | 241.3 | |||||||||||||
| Depreciation, depletion and amortization | 13.2 | 14.3 | 67.1 | 49.9 | 43.4 | |||||||||||||
| Total cost of sales | 123.3 | 89.9 | 467.5 | 365.4 | 284.7 | |||||||||||||
| Selling and marketing | 1.2 | 2.1 | 7.9 | 7.7 | 6.2 | |||||||||||||
| Accretion expense | 0.5 | 0.3 | 1.9 | 1.5 | 1.4 | |||||||||||||
| General and administrative | 6.7 | 5.9 | 28.3 | 23.5 | 25.1 | |||||||||||||
| Acquisition costs | - | 8.6 | - | 12.9 | - | |||||||||||||
| Exploration | 3.1 | 2.6 | 14.2 | 9.4 | 6.3 | |||||||||||||
| Total costs and expenses | 134.8 | 109.4 | 519.8 | 420.4 | 323.7 | |||||||||||||
| Operating income (loss) | (18.1) | 47.4 | 149.3 | 174.4 | 49.7 | |||||||||||||
| Other (income) and expenses | (9.1) | 79.4 | (154.0) | 40.5 | 103.7 | |||||||||||||
| Income (loss) before income and mining taxes | (9.0) | (32.0) | 303.3 | 133.9 | (54.0) | |||||||||||||
| Income and mining tax expense (benefit) | (9.8) | 13.0 | 11.2 | 20.2 | 2.0 | |||||||||||||
| Net income (loss) | $ | 0.8 | $ | (45.0) | $ | 292.1 | $ | 113.7 | $ | (56.0) | ||||||||
| Net income (loss) per share: | ||||||||||||||||||
| Basic | $ | - | $ | (0.28) | $ | 1.75 | $ | 0.79 | $ | (0.44) | ||||||||
| Diluted | $ | - | $ | (0.28) | $ | 1.73 | $ | 0.75 | $ | (0.44) | ||||||||
| Cash generated by operating activities | $ | 21.1 | $ | 31.6 | $ | 202.7 | $ | 157.4 | $ | 105.9 | ||||||||
| Adjusted non-GAAP Measures (1) | ||||||||||||||||||
| Adjusted net income (loss) (1) | $ | - | $ | 34.4 | $ | 122.9 | $ | 163.3 | $ | 37.4 | ||||||||
| Adjusted net income (loss) per share - basic (1) | $ | - | $ | 0.22 | $ | 0.74 | $ | 1.13 | $ | 0.29 | ||||||||
| Adjusted net income (loss) per share - diluted (1) | $ | - | $ | 0.20 | $ | 0.73 | $ | 1.07 | $ | 0.29 | ||||||||
| Operational Statistics | ||||||||||||||||||
| Mined molybdenum production (000s lb) (2) | 4,310 | 9,316 | 28,345 | 32,577 | 25,260 | |||||||||||||
| Cash cost ($/lb produced) (3) | $ | 12.69 | $ | 5.81 | $ | 7.94 | $ | 6.07 | $ | 5.84 | ||||||||
| Molybdenum sold (000s lb): | ||||||||||||||||||
| Thompson Creek and Endako Mine product | 5,368 | 7,574 | 31,806 | 29,072 | 27,389 | |||||||||||||
| Purchased and processed product | 2,650 | 1,896 | 8,245 | 7,855 | 4,683 | |||||||||||||
| 8,018 | 9,470 | 40,051 | 36,927 | 32,072 | ||||||||||||||
| Average realized sales price ($/lb) (1) | $ | 14.08 | $ | 16.05 | $ | 16.28 | $ | 15.67 |
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