TSX: BLE, BLE.WT.A
Frankfurt: A6R
Blue Pearl Reports Cash Flow From
Operating Activities Of US$75.4 Million In 2006
Highlights of 2006 reflecting acquisition of Thompson Creek Metals Company (TCMC) (all in U.S. dollars):
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Revenues for the fourth quarter and full year 2006 totaled $150.8 million - all occurring from sales mainly of molybdenum in the 67 days following the acquisition - amounting to approximately $2.25 million per day in the period October 26 to December 31, 2006.
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Cash flow from operating activities, mostly in the post-acquisition period, totaled $75.4 million.
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Company ended 2006 with cash balances of $98.1 million after paying, subsequent to closing, $61.5 million owed to the TCMC vendors relating to accounts receivable as provided for in the TCMC acquisition agreement. The Company's cash balances as of March 22, 2007 were approximately $135 million after also paying $64.3 million, including a prepayment premium, to discharge the Second Lien Credit Facility on March 15, 2007.
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Molybdenum production costs for output from the Thompson Creek and Endako mines averaged $6.28 per pound while realized prices on molybdenum sales averaged $25.74 per pound.
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Net loss of $20.6 million in 2006 includes $68.9 million of inventory purchase price adjustment included in operating expenses and a non-cash charge of $14.5 million for stock options compensation.
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Conference call and webcast for analysts and investors scheduled for March 27, at 10:00 a.m. Eastern
THIS PRESS RELEASE CONTAINS FINANCIAL STATEMENTS; CLICK HERE TO VIEW FULL PDF VERSION
Blue Pearl Mining Ltd., the world's largest publicly traded, pure molybdenum producer, today announced financial results for the year ended December 31, 2006 prepared in accordance with Canadian generally accepted accounting principles. All dollar amounts are in U.S. dollars unless otherwise indicated.
Blue Pearl's revenues totaled $150.8 million in 2006, derived mainly from the sale of molybdenum products subsequent to the Company's acquisition on October 26, 2006 of Thompson Creek Metals Company (TCMC). No revenues were earned by Blue Pearl in 2005 as it was in the development stage.
Operating expenses in 2006, which were incurred by TCMC during the period October 26 to December 31, 2006, totaled $145.1 million. Included in operating expenses was an acquisition expense of $68.9 million related to the inventory portion of the TCMC purchase price adjustment. TCMC held 7.8 million pounds of molybdenum in inventory on the acquisition date and this inventory was deemed to be purchased by Blue Pearl, for accounting purposes, at fair value, resulting in an uplift of inventory costs of $98.5 million over the original book value. Of this, $68.9 million was charged to operating expenses in 2006 and the remaining $29.6 million is expected to be charged to operating expenses in the first quarter of 2007 as the related inventory is sold. Blue Pearl had no operating expenses in 2005.
Among the Company's other 2006 expenses was a non-cash charge of $14.5 million for stock-based compensation as a result of options being granted to 110 members of management, senior operations personnel, directors and other staff. Stock-based compensation in 2005 was $0.4 million.
General and administrative expenses totaled $4.6 million in 2006, compared with $1.5 million in 2005. Exploration and development expenses, which were mainly related to the Davidson Project, were $8.6 million in 2006 versus $2.3 million a year earlier.
Net loss for 2006 was $20.6 million or $0.36 per basic and diluted share, compared with a net loss for 2005 of $4.1 million or $0.13 per basic and diluted share. The per share figures are based on a weighted-average number of shares outstanding of 57,688,000 in 2006 and 31,879,000 in 2005. As of December 31, 2006, there were 100,528,000 shares outstanding.
Cash generated by operating activities totaled $75.4 million in 2006, compared with cash used of $2.7 million in 2005.
Cash balances were $98.1 million as at December 31, 2006 versus $6.9 million a year earlier.
During 2006, mainly to finance the TCMC acquisition, the Company raised $233.7 million from equity issues and incurred $401.9 million in long-term debt. In 2005, $9.8 million was raised from equity issues.
Total assets at the end of 2006 were $935.7 million, up from $8.4 million a year earlier.
Revenues in the fourth quarter of 2006 were $150.8 million. There were no revenues in the fourth quarter of 2005. Net loss was $12.4 million or $0.14 per basic and diluted share in the fourth quarter of 2006, compared with $2.5 million or $0.06 per basic and diluted share in the corresponding period of 2005.
In 2006, the Company, following the TCMC acquisition, produced 3.84 million pounds of molybdenum at an average production cost of $6.28 per pound. The Company's U.S. operations produced 2.47 million pounds at an average cost of $5.83 per pound while the Canadian operations produced 1.37 million pounds at an average cost of $7.30 per pound. The amounts produced reflect molybdenum produced at the Thompson Creek and Endako mines but do not include molybdenum purchased from third parties, roasted and sold by the Company. The average costs reflect production costs, including roasting costs, for molybdenum from the Thompson Creek and Endako mines only.
For more information, please contact:
IAN MCDONALD, EXECUTIVE CHAIRMAN
BLUE PEARL MINING LTD.
TEL: 416-860-1438
INFO@BLUEPEARL.CA
WAYNE CHEVELDAYOFF
DIRECTOR, INVESTOR RELATIONS
TEL: 416-860-1438
TOLL FREE: 1-800-827-0992
WCHEVELDAYOFF@BLUEPEARL.CA   
RENMARK FINANCIAL COMMUNICATIONS INC.
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TEL.: 514-939-3989
FAX: 514-939-3717
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