Microsoft Word - Press Prelease - Q3 2015 Financial Results FINAL 11 08 15.docx
news release
November 9, 2015
Thompson Creek Reports Third Quarter 2015 Cash Balance of $217 Million and
Non-GAAP Unit Cash Cost on a By-Product Basis of Negative $0.16 per Pound of Copper Produced
Denver, CO - Thompson Creek Metals Company Inc. (NYSE: TC) (TSX: TCM) (the 'Company' or 'Thompson Creek'), a North American mining company, announced today financial results for the three and nine months ended September 30, 2015, 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 ended the quarter with a strong cash position of $217 million and achieved non-GAAP unit cash cost, on a by-product basis, net of gold credits, of negative $0.16 per pound of copper produced. The Company has lowered its 2015 unit cash cost guidance on a by-product basis from $0.70 - $0.90 to $0.55 - $0.75 per pound of copper produced. Please see 'Non-GAAP Financial Measures' below for the definition and reconciliation of non- GAAP cash costs.
During the quarter, the Company completed significant maintenance at the Langeloth facility on time and on budget. The scheduled maintenance, which occurs every few years, allows the Company to continue providing tolling services and to upgrade purchased molybdenum concentrates for sale in the metallurgical and chemical markets. In 2015, the molybdenum business is expected to generate positive cash flow before capital expenditures of approximately $21 to $23 million, net of care and maintenance costs at the Thompson Creek and Endako molybdenum mines, enabling the Company to maintain the optionality of its molybdenum business.
'First and foremost, we once again significantly improved our safety performance from one year ago, which is directly attributable to the hard work and commitment of all of our employees,' said Jacques Perron, President and Chief Executive Officer of Thompson Creek. 'We continue to focus on operational improvements at Mount Milligan Mine and our efforts have been rewarded by our excellent unit cash cost performance year-to-date. We are pleased to report that we successfully completed the installation of the second SAG discharge screen deck on October 26, and that the commissioning of the new configuration was completed at the end of October, with both screen decks operating as expected. Since restarting operations following the mill shutdown, we have been experiencing gradual improvements in throughput. Other than the permanent secondary crushing plant, all major modifications required to achieve our objectives have now been successfully completed, and we are confident that throughput will continue to increase through the remainder of the year.'
The Company also announced that it has engaged Moelis & Company and BMO Capital Markets to assist the Board in evaluating strategic and financial alternatives available to the Company, including debt refinancing and restructuring, new capital transactions and asset sales.
Highlights for the Third Quarter 2015
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Total cash and cash equivalents at September 30, 2015 were $217.1 million, which included $19.0 million in tax refunds received during the quarter, compared to $265.6 million at December 31, 2014. Total
debt, including capital lease obligations, at September 30, 2015 was $891.5 million, compared to $944.7 million at December 31, 2014.
-
Cash generated by operating activities was $38.5 million in the third quarter of 2015 compared to cash generated by operating activities of $83.0 million in the third quarter of 2014.
-
Consolidated revenues for the third quarter of 2015 were $141.7 million compared to $229.3 million in the third quarter of 2014. Copper and gold sales contributed $113.0 million in revenue in the third quarter of 2015 compared to $100.7 million in the third quarter of 2014. Molybdenum sales were $23.0 million for the third quarter of 2015 compared to $124.3 million in the third quarter of 2014. During the third quarter of 2015 we completed five shipments of copper and gold concentrate and recorded five sales compared to three shipments and three sales in the third quarter of 2014.
-
Payable production at Mount Milligan Mine for the third quarter of 2015 was 16.4 million pounds of copper and 53,791 ounces of gold, compared to payable production of 16.3 million pounds of copper and 60,366 ounces of gold for the third quarter of 2014.
-
Sales volumes and average realized sales prices for copper and gold for the third quarter of 2015 were
24.4 million pounds of copper at an average realized price of $2.09 per pound and 75,451 ounces of gold at an average realized price of $926 per ounce, as compared to 16.5 million pounds of copper at an average realized price of $3.02 per pound and 57,974 ounces of gold at an average realized price of $952 per ounce for the third quarter of 2014. Molybdenum sales volumes in the third quarter of 2015, which consisted of the sale of molybdenum inventory produced at our mines in 2014 and molybdenum sourced from third parties, were 2.9 million pounds at an average realized price of $7.86 per pound compared to 8.9 million pounds at an average realized price of $13.94 per pound for the third quarter of 2014.
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Consolidated operating income for the third quarter of 2015 was $10.5 million compared to $63.8 million for the third quarter of 2014. The quarter over quarter decline in operating income was primarily due to a decrease in molybdenum sales, partially offset by an increase in gold sales. Consolidated operating income for the third quarter of 2015 was also impacted by $3.5 million of costs related to idle molybdenum mining operations.
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Net loss for the third quarter of 2015 was $60.9 million, or $0.28 per diluted share, compared to a net loss of $11.1 million, or $0.05 per diluted share, for the third quarter of 2014. The net loss for the third quarter of 2015 and 2014 included primarily unrealized non-cash foreign exchange losses of $68.8 million and
$60.3 million, respectively, primarily on intercompany notes.
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Non-GAAP adjusted net loss for the third quarter of 2015 was $5.0 million, or $0.02 per diluted share, compared to non-GAAP adjusted net income for the same period of 2014 of $38.3 million, or $0.17 per diluted share. Non-GAAP adjusted net income (loss) excludes foreign exchange gains and losses, net of related income tax effects. See 'Non-GAAP Financial Measures' for the definition and reconciliation of non-GAAP adjusted net income (loss).
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Non-GAAP unit cash cost per pound of copper produced for the third quarter of 2015 was, on a by- product basis, net of gold credits, negative $0.16 per pound and, on a co-product basis, $1.66 per pound of copper and $527 per ounce of gold. Non-GAAP unit cash costs in the third quarter of 2014 was, on a by- product basis, $0.77 per pound and on a co-product basis, $1.80 per pound of copper and $477 per ounce of gold. See 'Non-GAAP Financial Measures' for the definition and reconciliation of non-GAAP cash costs.
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Capital expenditures for the third quarter of 2015 were $24.9 million, composed of $21.9 million for Mount Milligan Mine and $3.0 million for the Langeloth Facility, Endako Mine and corporate combined, compared to $21.9 million for the third quarter of 2014.
Summary of Quarterly Results
(US$ in millions, except per share, per pound and per ounce amounts-unaudited)
Sep 30 Jun 30
2015 2015
|
Mar 31 Dec 31
2015 2014
|
Sep 30
2014
|
Financial Information
|
Revenues
|
$ 141.7 $ 134.1
|
$ 123.0 $ 168.0
|
$ 229.3
|
Operating income (loss)
|
$ 10.5 $ 12.1
|
$ 5.2 $ (98.1)
|
$ 63.8
|
Net (loss) income
|
$ (60.9) $ 0.3
|
$ (87.2) $ (135.6)
|
$ (11.1)
|
Loss per share:
|
-basic
|
$ (0.28) $ 0.00
|
$ (0.41) $ (0.63)
|
$ (0.05)
|
-diluted
|
$ (0.28) $ 0.00
|
$ (0.41) $ (0.63)
|
$ (0.05)
|
Cash generated by (used in) operating activities
Adjusted Non-GAAP Measures (1)
|
$ 38.5 $ 23.9
|
$ (5.3) $ 34.9
|
$ 83.0
|
Adjusted net (loss) income
|
$ (5.0) $ (13.5)
|
$ (14.2) $ (10.0)
|
$ 38.3
|
Adjusted net (loss) income per share
|
-basic
|
$ (0.02) $ (0.06)
|
$ (0.07) $ (0.05)
|
$ 0.18
|
-diluted
|
$ (0.02) $ (0.06)
|
$ (0.07) $ (0.05)
|
$ 0.17
|
Operational Statistics
Copper
Payable production (000's lb) (2)
|
16,363
|
20,159
|
15,405
|
18,024
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16,267
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Cash cost ($/payable lb produced) - By-Product (1)
|
$ (0.16)
|
$ 0.48
|
$ 1.12
|
$ 1.16
|
$ 0.77
|
Cash cost ($/payable lb produced) - Co-Product (1)
|
$ 1.66
|
$ 1.55
|
$ 1.64
|
$ 1.88
|
$ 1.80
|
Copper sold (000's lb)
|
24,427
|
21,195
|
14,791
|
15,478
|
16,482
|
Average realized sales price ($/lb) (1)
|
$ 2.09
|
$ 2.63
|
$ 2.47
|
$ 2.75
|
$ 3.02
|
Gold
Payable production (oz) (2)
|
53,791
|
59,917
|
46,119
|
40,967
|
60,366
|
Cash cost ($/payable oz produced) - Co-Product (1)
|
$ 527
|
$ 434
|
$ 498
|
$ 506
|
$ 477
|
Gold sold (oz)
|
75,451
|
57,920
|
36,750
|
38,910
|
57,974
|
Average realized sales price ($/oz) (1)
|
$ 926
|
$ 975
|
$ 986
|
$ 1,003
|
$ 952
|
Molybdenum
Mined molybdenum production (000's lb)
|
- - - 4,328
|
6,560
|
Cash cost ($/lb produced)
|
$ - $ - $ - $ 10.34
|
$ 6.77
|
Molybdenum sold (000's lb):
|
TC Mine and Endako Mine product
|
592
|
576
|
2,552
|
5,756
|
6,732
|
Purchased and processed product
|
2,342
|
1,679
|
1,733
|
2,376
|
2,181
|
2,934
|
2,255
|
4,285
|
8,132
|
8,913
|
Average realized sales price ($/lb)
|
$ 7.86
|
$ 9.23
|
$ 10.00
|
$ 10.79
|
$ 13.94
|
(1) See 'Non-GAAP Financial Measures' for the definition and reconciliation of these non-GAAP measures.
(2) Payable production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and payable metal deductions, subject to metal content, levied by smelters. The current payable percentage applied is approximately 95.0% for copper and 96.5% for gold, which may be revised on a prospective basis after sufficient history of payable amounts is determined.
Selected Condensed Consolidated Financial and Operational Information (US$ in millions, except per share, per pound and per ounce amounts)
Three Months Ended Nine Months Ended
September 30,
September 30,
September 30,
September 30,
Financial Information
Revenues
2015 2014 2015 2014 (unaudited) (unaudited)
Copper sales $ 43.5 $ 45.7 $ 125.0 $ 140.3
Gold sales 69.5 55.0 161.8 133.5
Molybdenum sales 23.0 124.3 86.7 353.5
Tolling, calcining and other 5.7 4.3 25.3 11.4
Total revenues 141.7 229.3 398.8 638.7
Costs and expenses Cost of sales
Operating expenses
|
88.5
|
133.4
|
246.8
|
395.2
|
Depreciation, depletion and amortization
|
30.9
|
22.7
|
77.7
|
78.3
|
Total cost of sales
|
119.4
|
156.1
|
324.5
|
473.5
|
Total costs and expenses
|
131.2
|
165.5
|
371.0
|
504.5
|
Operating income
|
10.5
|
63.8
|
27.8
|
134.2
|
Other expense
|
88.4
|
79.7
|
204.2
|
128.1
|
(Loss) income before income and mining taxes
|
(77.9)
|
(15.9)
|
(176.4)
|
6.1
|
Income and mining tax benefit
|
(17.0)
|
(4.8)
|
(28.6)
|
(5.3)
|
Net (loss) income $ (60.9) $ (11.1) $ (147.8) $ 11.4
Net (loss) income per share
Basic
|
$ (0.28) $
|
(0.05)
|
$ (0.68) $
|
0.06
|
Diluted
|
$ (0.28) $
|
(0.05)
|
$ (0.68) $
|
0.05
|
Cash generated by (used in) operating activities
|
$ 38.5 $
|
83.0
|
$ 57.1 $
|
149.9
|
Adjusted Non-GAAP Measures: (1)
|
Adjusted net income (loss) (1)
|
$ (5.0) $
|
38.3
|
$ (32.7) $
|
64.6
|
Adjusted net income (loss) per share-basic (1)
|
$ (0.02) $
|
0.18
|
$ (0.15) $
|
0.35
|
Adjusted net income (loss) per share-diluted (1)
|
$ (0.02) $
|
0.17
|
$ (0.15) $
|
0.29
|