THOMPSON CREEK ANNOUNCES FIRST QUARTER 2011 RECORD PRODUCTION OF
10.3 MILLION POUNDS OF MOLYBDENUM AND APPROVES MT. MILLIGAN
CAPITAL EXPENDITURE BUDGET
Denver,
CO - May 6, 2011 - Thompson Creek Metals Company Inc. (NYSE: TC; TSX:
TCM, TCM.WT; TSX-V:TRX.WT) (�Company� or �Thompson Creek�), a growing, diversified North
American mining company, today announced financial results for the three
months ended March 31, 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:
Revenue for the quarter ended March 31,
2011 was $206.7 million, up 62% from $127.8 million for the first quarter
of 2010.
Net
Income
for the quarter ended March 31, 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. Net income for the quarter ended March 31,
2010 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
$24.5 million, or $0.17 per basic and $0.16 per diluted share.
Non-GAAP
Adjusted Net Income for the quarter ended March 31, 2011 (excluding the non-cash unrealized
gain on the warrants) was $62.9 million, or $0.38 per basic and $0.36 per
diluted share. Non-GAAP adjusted net income for the quarter ended
March 31, 2010 (excluding the non-cash unrealized loss on the warrants)
was $25.6 million, or $0.18 per basic and $0.17 per diluted share.
The Company�s
net income 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).
Molybdenum
Production
for the quarter ended March 31, 2011 was a new quarterly record of 10.3
million pounds, up 25% from 8.3 million pounds in the first quarter of
2010.
Non-GAAP Average
Cash Cost Per Pound Produced for the quarter ended March
31, 2011 was $5.37 per pound, compared to $5.36 per pound for the first
quarter of 2010.
Cash
Flow From Operations for the quarter ended March 31, 2011 was $76.6 million, up 200%
from $25.6 million for the first quarter of 2010.
Capital
Costs incurred for
the quarter ended March 31, 2011 were $121.4 million, comprised of $10.1
million of capital costs for the mines, the Langeloth Facility and
corporate, and $51.9 million and $59.4 million of capital costs for the
mill expansion project at the Endako Mine (75% share) and the development
of Mt. Milligan, respectively. The capital costs for the first
quarter of 2011 include amounts accrued of $28.5 million at March 31,
2011; therefore, capital expenditures for the first quarter of 2011 were
$92.9 million.
Total
Cash and Cash Equivalents at March 31, 2011 were $303.0 million, compared
to $316.0 million as of December 31, 2010. Total debt as of March
31, 2011 was $20.5 million, compared to $22.0 million as of December 31,
2010.
�Thompson
Creek achieved excellent financial performance in the first quarter of
2011, mainly as a result of increased production, sales volumes and
molybdenum prices,� said Kevin Loughrey, Chairman and Chief Executive
Officer of Thompson Creek. �The Company produced a record 10.3 million
pounds of molybdenum, and sold a record 10.1 million pounds of molybdenum
from its mines for an average realized molybdenum sales price for the
quarter of $17.39, up 20% from $14.50 in the first quarter of 2010.
We anticipate that over the remainder of 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,�
added Mr. Loughrey.
The Company
also announced that it has approved the increased capital expenditure
budget for the Mt. Milligan project in British Columbia from C$915
million to C$1.265 billion. The C$350 million increase is
attributable to design improvements, increases in labor costs, the cost
of steel, concrete and other materials, and changes in the foreign
exchange rate.
�Mt. Milligan
is an important building block for our Company, both in terms of growth
and diversification,� said Kevin Loughrey. �We believe that,
notwithstanding the capital increase, the economics for the project are
still extremely attractive, and our liquidity and capital resources are
sufficient to complete the construction of the Mt. Milligan mine.
We expect to commence production in late 2013 and produce approximately
81 million pounds of copper and 194,000 ounces of gold annually,� added
Mr. Loughrey.
At March 31,
2011, Thompson Creek had working capital of $392.7 million, including
$303.0 million of cash, cash equivalents and short-term investments,
$106.8 million of receivables, and $20.5 million of debt related to
equipment financings. The Company intends to fund the remaining
mill expansion costs at the Endako Mine and the Mt. Milligan development
costs from a combination of cash on hand, cash flow from operations, funds
from various financing facilities, the remaining proceeds from the gold
stream transaction with Royal Gold and expected funds from the exercise
of warrants that expire in October 2011. Thompson Creek may
consider additional debt financings. The timing of any financing
transaction will depend on market conditions. The Company does not
currently intend to fund Mt. Milligan development costs through the
issuance of equity or equity-linked securities.
THIS
PRESS RELEASE CONTAINS TABLES AND FINANCIAL STATEMENTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN
PDF FORMAT.
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. The Company�s development projects
include the Davidson molybdenum property and the Berg copper-molybdenum-silver
property, both located in northern British Columbia. Thompson Creek
has approximately 967 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.
Conference
Call and Webcast
Thompson
Creek will hold a conference call for analysts and investors to discuss
its first quarter 2011 financial results on Monday, May 9, 2011 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 investor 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 56947200 followed by the number sign) from
11:30 a.m. Eastern Time on May 9 to 11:59 p.m. Eastern Time on May
16. An archived recording of the webcast will also be available at
Thompson Creek�s website.
THIS
PRESS RELEASE CONTAINS TABLES AND FINANCIAL STATEMENTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN
PDF FORMAT.
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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. Forward-looking statements
include statements with respect to: future financial or operating
performance of Thompson Creek or its subsidiaries and it projects;
future inventory, production, cash costs, capital expenditures and
exploration expenditures; funding sources for the Endako Mine expansion
and Mt. Milligan development costs; 2011 operating goals; and 2011
molybdenum prices.
Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to
general business, economic, competitive, political and social
uncertainties including global economic conditions; volatility in
molybdenum prices; labor cost and materials cost fluctuations; foreign
currency fluctuations; energy price fluctuations; project delays; 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; and
failure of plant, equipment or processes to operate as
anticipated. 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 Annual Report on Form 10-K and in Section 1A of Form
10-Q, and subsequent documents filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com. 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.
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