THOMPSON CREEK ANNOUNCES 2011 SECOND QUARTER REVENUE UP 28.6% TO $190.9 MILLION AND CASH FLOW FROM OPERATIONS UP 30% TO $53.6 MILLION
Denver, CO - August 8, 2011 - Thompson Creek Metals Company Inc. (�Company� or �Thompson Creek�), a growing, diversified North American mining company, today announced financial results for the three and six months ended June 30, 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.
Financial Highlights:
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Revenue for the second quarter of 2011 was $190.9 million, up 28.6% from $148.4 million in the second quarter of 2010. Revenue for the first six months of 2011 was $397.6 million, up 44% from $276.2 million for the same period in 2010. Sales volumes for the second quarter of 2011 were 10.8 million pounds, up 25% from 8.6 million pounds in the second quarter of 2010. Sales volumes for the first six months of 2011 were 22.4 million pounds, up 30.4% from 17.2 million pounds for the same period in 2010.
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Net Income for the second quarter of 2011 was $116.8 million, or $0.70 per basic and $0.68 per diluted share, down 7.7% from $126.5 million, or $0.90 per basic and $0.87 per diluted share for the second quarter of 2010. Net income for the second quarter of 2011 included a non-cash unrealized gain on common share purchase warrants of $60.4 million, or $0.36 per basic share and $0.35 per diluted share. Net income for the second quarter of 2010 included a non-cash unrealized gain on common share purchase warrants of $74.8 million, or $0.54 per basic and $0.51 per diluted share.
Net income for the first six months of 2011 was $245.7 million, or $1.48 per basic and $1.41 per diluted share, up 92.6% from $127.6 million, or $0.91 per basic and $0.86 per diluted share for the same period in 2010. Net income for the first six months of 2011 included a non-cash unrealized gain on common share purchase warrants of $126.4 million, or $0.76 per basic and $0.72 per diluted share. Net income for the first six months of 2010 included a non-cash unrealized gain on common share purchase warrants of $50.3 million, or $0.36 per basic and $0.34 per diluted share.
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Non-GAAP Adjusted Net Income for the second quarter of 2011 (excluding the non-cash unrealized gain on the warrants) was $56.4 million, or $0.34 per basic and $0.33 per diluted share, up 9.1% from $51.7 million, or $0.37 per basic and $0.36 per diluted share for the second quarter of 2010.
Non-GAAP adjusted net income for the first six months of 2011 (excluding the non-cash unrealized gain on the warrants) was $119.3 million, or $0.72 per basic and $0.68 per diluted share, up 54.3% from $77.3 million, or $0.55 per basic and $0.52 per diluted share for the same period in 2010.
The Company�s net income continues to be affected by the previously disclosed requirements 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.
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Molybdenum Production for the second quarter of 2011 was 10.0 million pounds, up 42.3% from 7.0 million pounds in the second quarter of 2010. Molybdenum produced for the first six months of 2011 was 20.3 million pounds, up 32.9% from 15.3 million pounds for the same period in 2010.
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Non-GAAP Average Cash Cost Per Pound Produced for the second quarter of 2011 was $5.74 per pound, down 18.7% from $7.06 per pound for the second quarter of 2010. Non-GAAP average cash cost per pound produced for the first six months of 2011 was $5.54 per pound, down 10% from to $6.14 per pound for the same period of 2010.
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Cash Flow From Operations for the second quarter of 2011 was $53.6 million, up 30% from $41.2 million in the second quarter of 2010. Cash flow from operations for the first six months of 2011 was $130.2 million, up 94.9% from $66.8 for the same period in 2010.
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Capital Costs incurred for the first six months of 2011 were $294.5 million, comprised of $153.7 million for the development of Mt. Milligan, $113.5 million for the mill expansion project at the Endako mine (75% share) and $27.3 million for the mines, the Langeloth facility and corporate. The capital costs for the first six months of 2011 included amounts accrued of $43.4 million and capitalized interest of $3.0 million at June 30, 2011; therefore, cash used for capital expenditures for the six months was $248.1 million.
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Total Cash and Cash Equivalents as of June 30, 2011 were $560.4 million, compared to $316.0 million as of December 31, 2010. Total debt as of June 30, 2011 was $369.2 million, compared to $22.0 million as of December 31, 2010.
�Thompson Creek achieved excellent financial performance for the second quarter and first half of the year, with significant increases in revenue, cash flow from operations and adjusted net income,� said Kevin Loughrey, Chairman and Chief Executive Officer of Thompson Creek. �For the first half of 2011, the Company produced 20.3 million pounds of molybdenum and sold 19.0 million pounds of molybdenum from its mines for an average realized molybdenum sales price of $17.33, up 10.5% from $15.68 in the first half of 2010. While we expect our production to be lower and our cash costs to be higher in the second half of the year, the Company is on track to achieve its previously announced production and cash cost guidance for the year,� added Mr. Loughrey.
The Company also announced that the capital expenditures for the mill expansion project at the Endako mine may be approximately 15% higher than the previously announced revised estimate of C$550 million (100%) and the start-up of the new mill to be in the first quarter of 2012. �We look forward to the near-term completion of the Endako state-of-the-art mill facility and are confident that our liquidity and capital resources are sufficient to complete this project, as well as the Mt. Milligan copper-gold project,� added Mr. Loughrey.
THIS PRESS RELEASE CONTAINS UPDATES AND FINANCIAL RESULTS, CLICK HERE TO VIEW ENTIRE DOCUMENT IN PDF FORMAT.
Conference Call and Webcast
Thompson Creek will hold a conference call for analysts and investors to discuss its 2011 second quarter and first half financial results on Tuesday, August 9, 2011 at 8:30 am Eastern Time. Kevin Loughrey, Chairman and Chief Executive Officer, and Pamela Saxton, Chief Financial Officer and Vice President, 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/en/webcast 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 82077886 followed by the number sign) from 11:30 a.m. ET on August 9 to 11:59 p.m. ET on August 16. 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 central British Columbia, which is expected to commence production in 2013. The Company�s development projects include the Berg copper-molybdenum-silver property and the Davidson molybdenum property, both located in central British Columbia. Thompson Creek has approximately 972 employees. Its principal executive office is in Denver, Colorado and its Canadian administrative office is in Vancouver, British Columbia. More information is available at www.thompsoncreekmetals.com.
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Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release (including information incorporated by reference) are ��forward-looking statements� within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and applicable Canadian securities legislation. These forward-looking statements generally are identified by the words �believe,� �project,� �expect,� �anticipate,� �estimate,� �intend,� �strategy,� �future,� �opportunity,� �plan,� �may,� �should,� �will,� �would,� �will be,� �will continue,� �will likely result,� and similar expressions. Our forward looking statements include, without limitation: estimates of future capital expenditures and other cash needs for operations, including with respect to the Endako mill expansion and the development of Mt. Milligan, and expectations as to the funding thereof; statements as to the projected development of the Endako mill expansion, Mt. Milligan and other projects, including expected production commencement dates; statements regarding future earnings, and the sensitivity of earnings to molybdenum prices; estimates of future production costs and other expenses for specific operations and on a consolidated basis; estimates of future mineral production and sales for specific operations and on a consolidated basis; estimates of mineral reserves and resources, including estimated mine life and annual production; estimates as to commodity prices; statements with respect to the future financial or operating performance of TCM or its subsidiaries and its projects; statements with respect to the costs and timing of future exploration projects and the development of new deposits including the Berg property and the Davidson property; projected synergies and costs associated with acquisitions and related matters; and statements as to TCM�s ability to achieve its expected growth strategy.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the section entitled ��Risk Factors�� in Thompson Creek�s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com. Although we have attempted to identify those factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that cause results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond TCM�s ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. |
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