NYSE: TC
TSX: TCM
TSX-V: TRX.WT
DENVER, CO, May 3, 2012 /CNW/ - Thompson Creek Metals Company Inc.
(the
"Company" or "Thompson Creek"), a growing, diversified North American
mining company, today announced financial results for the three months
ended March 31, 2012, prepared in accordance with United States
generally accepted accounting principles ("US GAAP").
All dollar
amounts are in United States ("US") dollars unless otherwise indicated.
Thompson Creek reported net income of $1.1 million, or $0.01 per basic
and diluted share for the first quarter of 2012.
The Companys
operating results reflected an operating loss of $16.5 million due to
lower production and higher costs in connection with the start-up and
commissioning of the new mill at the Endako mine. This operating loss
was more than offset by a foreign exchange gain and an income tax
benefit. The first quarter 2012 financial results included the
Companys 75% share of an aggregate lower-of-cost or market product
inventory write-down at the Endako mine of $11.1 million and $2.3
million of the Companys share of Endako commissioning and start-up
costs that were expensed through operating expenses and included in the
Companys share of total estimated capital expenditures of
approximately C$500 million.
These final figures update the previously
announced preliminary figures of approximately $12 million and $3
million, respectively.
The first quarter 2012 results were impacted by
significantly lower production, higher unit costs, higher unit
depreciation and lower sales volumes and average realized prices
compared to the first quarter of 2011, as well as significant stripping
costs at the Thompson Creek mine associated with the ongoing mine
sequencing.
"Through continued optimization we expect to make up for the lower
production throughout the remainder of 2012 and to meet our previously
announced 2012 production guidance from the Endako mine of
approximately 14 to 15 million pounds of molybdenum on a 100% basis, or
10 to 11 million pounds for the Companys 75% share," said Kevin
Loughrey, Chairman and Chief Executive Officer of Thompson Creek. "We
anticipate meeting our total 2012 production guidance of approximately
26 to 28 million pounds of molybdenum; however, due to inflationary
pressures on energy and consumables, we are currently tracking to the
higher range of the Companys current 2012 average cash cost guidance
of approximately $7.75 to $9.00 per pound produced. Despite our
efforts to aggressively manage costs, inflationary pressures may cause
actual costs to vary from current guidance. Additionally, the
Companys operating performance for the first half of 2012 is expected
to be less than the operating performance for the second half of 2012.
Production is expected to be higher in the second half of 2012 due to
the anticipated ramp-up of production from the newly completed mill,
together with the improved ore accessibility at the Thompson Creek
mine.
Waste stripping activities at the Thompson Creek mine are
expected to continue throughout 2012 and 2013," added Mr.
Loughrey.
"During the first quarter of 2012, we completed the Endako mill
expansion project, which is currently performing exceptionally well and
is expected to meet design specifications in the near future," said Mr.
Loughrey.
"We also continued to advance our Mt.
Milligan copper-gold
project, which remains on schedule for completion in the third quarter
of 2013 and commercial production in the fourth quarter of 2013.
As we
continue our transition from a pure molybdenum producer into a
diversified base metals company, we are very optimistic about the
long-term prospects for our Company, our business, and the commodity
markets," added Mr.
Loughrey.
Financial Highlights:
Revenue for the first quarter of 2012 was $113.6 million, compared to $206.7 million for the first quarter of 2011. Sales volume from our mines for the first quarter of 2012 was 4.9 million pounds of molybdenum, compared to 10.1 million pounds of molybdenum in the first quarter of 2011. The average realized sales price for molybdenum for the first quarter of 2012 was $14.74 per pound, compared to $17.39 per pound in the first quarter of 2011.
Foreign Exchange Gain for the first quarter of 2012 was $6.6 million (of which $3.5 million was an unrealized gain), compared to a foreign exchange loss of $0.3 million in the first quarter of 2011.
Net Income for the first quarter of 2012 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 $0.1 million, or nil per share. Net income for the first quarter of 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.
Non-GAAP Adjusted Net Income for the first quarter of 2012 (excluding the non-cash unrealized loss on the warrants) was $1.2 million, or $0.01 per basic and diluted share, compared to non-GAAP adjusted net income for the first quarter of 2011 (excluding the non-cash unrealized gain on the warrants) of $62.9 million, or $0.38 per basic and $0.36 per diluted share.
Molybdenum Production for the first quarter of 2012 was 4.4 million pounds, compared to 10.3 million pounds in the first quarter of 2011.
Non-GAAP Weighted Average Cash Cost per Pound Produced for the first quarter of 2012 was $12.95 per pound, compared to $5.37 per pound for the first quarter of 2011.
Cash Flow from Operations for the first quarter of 2012 was $3.1 million, compared to $76.6 million for the first quarter of 2011.
Capital Costs incurred for the first quarter of 2012 were $208.2 million, comprised of $164.8
million for the development of Mt.
Milligan, $37.5 million of capital
costs for the Endako mill expansion project (which represents the
Companys 75% share), and $5.9 million of other capital costs for the
Endako and Thompson Creek mines, the Langeloth facility and corporate
combined. The capital costs for the first quarter of 2012 included
increases in accrued amounts of $20.3 million; therefore, cash used for
capital expenditures for the first quarter of 2012 was $187.9 million.
Total Cash and Cash Equivalents at March 31, 2012 were $162.7 million, compared to $294.5 million as of December 31, 2011. Total debt as of March 31, 2012, including capital lease obligations, was $373.2 million, compared to $374.9 million as of December 31, 2011.
| Selected Consolidated Financial and Operational Information | |||||||||||
| (US$ in millions except per share and per pound amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2012 | 2011 | ||||||||||
| (unaudited) | |||||||||||
| Financial | |||||||||||
| Revenues | |||||||||||
| Molybdenum sales | $ | 109.6 | $ | 202.4 | |||||||
| Tolling, calcining and other | 4.0 | 4.3 | |||||||||
| 113.6 | 206.7 | ||||||||||
| Costs and expenses | |||||||||||
| Operating expenses | 102.4 | 98.0 | |||||||||
| Depreciation, depletion and amortization | 16.8 | 18.4 | |||||||||
| Total cost of sales | 119.2 | 116.4 | |||||||||
| Selling and marketing | 1.5 | 2.4 | |||||||||
| Accretion expense | 0.5 | 0.5 | |||||||||
| General and administrative | 8.1 | 7.9 | |||||||||
| Exploration | 0.8 | 3.6 | |||||||||
| Total costs and expenses | 130.1 | 130.8 | |||||||||
| Operating (loss) income | (16.5) | 75.9 | |||||||||
| Other income | (5.5) | (65.0) | |||||||||
| (Loss) income before income and mining taxes | (11.0) | 140.9 | |||||||||
| Income and mining taxes (benefit) expense | (12.1) | 12.0 | |||||||||
| Net income | $ | 1.1 | $ | 128.9 | |||||||
| Net income per share | |||||||||||
| Basic | $ | 0.01 | $ | 0.78 | |||||||
| Diluted | $ | 0.01 | $ | 0.73 | |||||||
| Cash generated by operating activities | $ | 3.1 | $ | 76.6 | |||||||
| Adjusted non-GAAP Measures:(1) | |||||||||||
| Adjusted net income(1) | $ | 1.2 | $ | 62.9 | |||||||
| Adjusted net income per share - basic(1) | $ | 0.01 | $ | 0.38 | |||||||
| Adjusted net income per share - diluted(1) | $ | 0.01 | $ | 0.36 | |||||||
| Operational Statistics | |||||||||||
| Mined molybdenum production (000s lb)(2) | 4,424 | 10,329 | |||||||||
| Cash cost ($/lb produced)(3) | $ | 12.95 | $ | 5.37 | |||||||
| Molybdenum sold (000s lb): | |||||||||||
| Thompson Creek and Endako Mine product | 4,871 | 10,060 | |||||||||
| Purchased and processed product | 2,567 | 1,580 | |||||||||
| 7,438 | 11,640 | ||||||||||
| Average realized sales price ($/lb)(1) | $ | 14.74 | $ | 17.39 | |||||||
| (1) | See "Non-GAAP Financial Measures" for the definition and reconciliation 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 mine 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, corporate allocations, stock-based compensation, other non-cash employee benefits, depreciation, depletion, amortization and accretion, and commissioning and start-up costs for the Endako mill. The cash cost for the Thompson Creek mine, which only produces molybdenum sulfide and HPM on site, includes an estimated molybdenum loss (sulfide to oxide), an allocation of roasting and packaging costs from the Langeloth facility, and transportation costs from the Thompson Creek mine to the Langeloth facility. See "Non-GAAP Financial Measures" for additional information. |
| Summary of Quarterly Results | |||||||||||||||||||||||||
| (US$ in millions except per share and per pound amounts - unaudited) | |||||||||||||||||||||||||
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | ||||||||||||||||||
| 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||||
| Financial | |||||||||||||||||||||||||
| Revenues | $ | 113.6 | $ | 116.7 | $ | 154.8 | $ | 190.9 | $ | 206.7 | $ | 156.8 | $ | 161.8 | $ | 148.4 | |||||||||
| Operating (loss) income | $ | (16.5) | $ | (18.1) | $ | 22.4 | $ | 69.1 | $ | 75.9 | $ | 47.4 | $ | 45.6 | $ | 50.3 | |||||||||
| Net income (loss) | $ | 1.1 | $ | 0.8 | $ | 45.6 | $ | 116.8 | $ | 128.9 | $ | (45.0) | $ | 31.1 | $ | 126.5 | |||||||||
| Income (loss) per share: | |||||||||||||||||||||||||
| - basic | $ | 0.01 | $ | - | $ | 0.27 | $ | 0.70 | $ | 0.78 | $ | (0.28) | $ | 0.22 | $ | 0.90 | |||||||||
| - diluted | $ | 0.01 | $ | - | $ | 0.27 | $ | 0.68 | $ | 0.73 | $ | (0.28) | $ | 0.22 | $ | 0.87 | |||||||||
| Cash generated by operating activities | $ | 3.1 | $ | 21.1 | $ | 51.4 | $ | 53.6 | $ | 76.6 | $ | 31.6 | $ | 59.0 | $ | 41.2 | |||||||||
| Adjusted non-GAAP Measures: (1) | |||||||||||||||||||||||||
| Adjusted net income (1) | $ | 1.2 | $ | - | $ | 3.6 | $ | 56.4 | $ | 62.9 | $ | 34.4 | $ | 51.6 | $ | 51.7 | |||||||||
| Adjusted net income per share: (1) | |||||||||||||||||||||||||
| - basic (1) | $ | 0.01 | $ | - | $ | 0.02 | $ | 0.34 | $ | 0.38 | $ | 0.22 | $ | 0.37 | $ | 0.37 | |||||||||
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