THOMPSON CREEK ANNOUNCES THIRD-QUARTER 2010 REVENUES UP
41% AND CASH FLOW FROM OPERATIONS UP 143%
Toronto, ON - November 4, 2010 - Thompson Creek Metals Company Inc. (NYSE: TC, TSX: TCM, TCM.WT) (�Company� or �Thompson Creek�), a growing, diversified, North American mining company, today announced financial results for the three and nine months ended September 30, 2010 prepared in accordance with United States generally accepted accounting principles (�US GAAP�). All dollar amounts are in United States (�US�) dollars unless otherwise indicated.
Highlights for the Quarter:
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Revenues for the third quarter of 2010 were $161.8 million, up 41.4% from $114.4 million for the third quarter of 2009.
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Net Income for the third quarter of 2010 was $31.1 million, or $0.22 per basic and diluted share, which included a non-cash unrealized loss on common stock warrants of $20.5 million, or $0.15 per basic and $0.14 per diluted share. Net loss for the third quarter of 2009 was $1.4 million, or $0.01 per basic and diluted share, which included a non-cash unrealized loss on common stock warrants of $15.7 million, or $0.12 per basic and diluted share.
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Non-GAAP Adjusted Net Income for the third quarter of 2010 (excluding the non-cash unrealized loss on the warrants) was $51.6 million, or $0.37 per basic and $0.36 per diluted share. Non-GAAP adjusted net income for the third quarter of 2009 (excluding the non-cash unrealized loss on the warrants) was $14.3 million, or $0.11 per basic and diluted share.
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Molybdenum Production for the third quarter of 2010 was 8.0 million pounds, up 28% from 6.2 million pounds for the third quarter of 2009.
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Cash Flow From Operations was $59.0 million for the third quarter of 2010, up 143.8% from $24.2 million for the third quarter of 2009.
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Capital Costs for the nine months ended September 30, 2010 were $169.7 million, comprised of $65.0 million of capital costs for the mines, the Langeloth facility and corporate, and $104.7 million for the Company�s 75% share of capital costs for the Endako mill expansion project. The capital costs for the first nine months of 2010 included accrued amounts of $22.4 million at September 30, 2010; therefore, capital expenditures for the first nine months of 2010 were $147.3 million.
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Cash, Cash Equivalents and Short-term Investments as of September 30, 2010 were $493.0 million, compared to $511.5 million as of December 31, 2009. Total debt as of September 30, 2010 was $9.9 million, compared to $12.9 million as of December 31, 2009.
�Thompson Creek�s third-quarter financial performance was significantly improved from a year earlier mainly as a result of strengthening molybdenum prices,� said Kevin Loughrey, Chairman and Chief Executive Officer. �The Company�s average realized molybdenum sales price for the third quarter of 2010 increased by 20% to $15.30 per pound from $12.75 per pound in the third quarter of 2009. We anticipate that over the balance of 2010 and in 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,� said Mr. Loughrey.
On October 20, 2010, Thompson Creek completed the acquisition of Terrane Metals Corp. which was acquired to diversify the Company�s current asset base to include contributions from copper and gold subsequent to the expected start-up of Terrane�s Mt. Milligan Project in 2013.
�We are extremely pleased to have completed the Terrane acquisition and transition our Company from a pure molybdenum producer to a diversified base metals company. We are excited to begin construction of the Mt. Milligan Project, which we expect will generate substantial growth in earnings and cash flow for the Company once production commences,� Mr. Loughrey stated.
The Company�s financial performance continues to be affected by the previously disclosed requirement under US GAAP to account for the Company�s outstanding common stock warrants as a derivative liability, with changes in the fair market value recorded in net income (loss). During the third quarter of 2010, the value of the outstanding warrants (and the Company�s reported derivative liability) was increased by $20.5 million, resulting in a non-cash loss of the same amount. Excluding the non-cash loss related to the warrants, the Company�s non-GAAP adjusted net income for the third quarter of 2010 was $51.6 million. Additionally, the Terrane warrants that continue to remain outstanding will also be accounted for under US GAAP as a derivative liability. The Company will continue to present non-GAAP adjusted net income on a quarterly basis related to both the Thompson Creek and Terrane outstanding warrants.
THIS PRESS RELEASE CONTAINS TABLES AND FINANCIAL STATEMENTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.
Conference Call and Webcast
Thompson Creek will hold a conference call for analysts and investors to discuss its third quarter 2010 financial results on Friday, November 5, 2010 at 8:30 am Eastern Time. Kevin Loughrey, Chairman and Chief Executive Officer, and Pamela Saxton, Chief Financial Officer, will be available to answer questions during the call.
To participate in the call, please dial 1 (647) 427-7450 or 1 (888) 231-8191 about five minutes prior to the start of the call. A live audio webcast of the conference call will be available at www.newswire.ca and www.thompsoncreekmetals.com.
An archived recording of the conference call will be available at 1 (416) 849-0833 or 1 (800) 642-1687 (access code 16794588 followed by the number sign) from 11:30 a.m. on November 5 to 11:59 p.m. on November 12. An archived recording of the webcast will also be available at Thompson Creek�s website.
About Thompson Creek Metals Company Inc.
Thompson Creek Metals Company Inc. is a growing, diversified, North American mining company. The Company produces molybdenum at its 100%-owned Thompson Creek mine in Idaho and Langeloth Metallurgical Facility in Pennsylvania and its 75%-owned Endako mine in northern British Columbia. The Company is also in the process of constructing the Mt. Milligan copper-gold mine in northern British Columbia, which is expected to commence production in 2013. Among the Company�s development projects are the Mount Emmons molybdenum deposit in Colorado and the Davidson molybdenum and Berg copper-molybdenum-silver deposits in northern British Columbia. Thompson Creek has approximately 875 employees. Its principal executive office is in Denver, Colorado, and it also has office s in Toronto, Ontario and Vancouver, British Columbia. More information is available at www.thompsoncreekmetals.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains ��forward-looking information�� within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Often, but not always, forward-looking statements can be identified by the use of words such as ��plans��, ��expects��, ��is expected��, ��budget��, ��scheduled��, ��estimates��, ��forecasts��, ��intends��, ��anticipates��, or ��believes�� or variations (including negative variations) of such words and phrases, or state that certain actions, events or results ��may��, ��could��, ��would��, ��might�� or ��will�� be taken, occur or be achieved or are �subject� to future events. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Thompson Creek and its subsidiaries to be materially different from any future results, p erformance or achievements expressed or implied by the forward-looking statements. Examples of forward-looking information include, but are not limited to: statements with respect to the future financial or operating performance of Thompson Creek or its subsidiaries and its projects; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; capital, operating and exploration expenditures; the costs and timing of the development of new deposits including Mount Emmons, Davidson and Berg; the costs and timing of future exploration; requirements for additional capital; the expected increase in Thompson Creek�s share of annual production resulting from the expansion of the Endako mine; the benefits of the Terrane acquisition to Thompson Creek shareholders (including the diversification of Thompson Creek�s assets; the benefits of the gold stream transaction with Royal Gold; th e ability to finance future projects without equity dilution; and Thompson Creek�s potential to obtain significant production growth by 2013); the achievement of the mine plan at Mt. Milligan, including estimated mine life, expected annual production, and creation of up to 400 direct permanent jobs; Thompson Creek�s plans for funding of initial capital costs at Mt. Milligan; the commissioning of a mine and mill complex at Mt. Milligan in 2013; disruption to Thompson Creek�s business as a result of the Terrane acquisition; and Thompson Creek�s ability to achieve its expected growth strategy.
Such factors include, among others, risks related to general business, economic, competitive, political and social uncertainties including the current global recessionary economic conditions, the associated low molybdenum prices and the levels of disruption and continuing illiquidity in the credit markets; risks related to foreign currency fluctuations; energy prices and fluctuations; title disputes or claims; limitations of insurance coverage; changes in governmental regulation of mining operations; risks related to the volatility of Thompson Creek�s share price; changes in environmental regulation; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations of ore grade or recovery rates; impurities and toxic substances in the mined material , failure of plant, equipment or processes to operate as anticipated; the age of the Langeloth Facility; structural integrity and old equipment at the Endako Mine; accidents, labor disputes and other risks of the mining industry; access to skilled labor; relations with employees; dependence upon key management personnel and executives; political instability, insurrection or war; disruption of transportation services; increased transportation costs and delays in obtaining governmental permits and approvals, or financing or in the completion of development or construction activities. Additional factors that could cause Thompson Creek�s results to differ from those described in the forward-looking information can be found in the section entitled ��Risk Factors�� in Thompson Creek�s current Annual Report on Form 10-K, as amended, and subsequent documents filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com . Although Thompson Creek has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Thompson Creek disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Readers should refer to Thompson Creek�s current Annual Report on Form 10-K, as amended, which is available on SEDAR at www.sedar.com and EDGAR at www.sec.gov and other continuous disclosure documents available at www.sedar.com and www.sec.gov for further information on ore reserves and mineralized material, which is subject to the qualifications and notes set forth therein. |
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