THOMPSON CREEK ANNOUNCES RECORD PRODUCTION AND SALES VOLUMES
FOR FISCAL 2010
- Revenue up 59% to $594.8 million
- Net income was $113.7 million
- Cash
flow from operations increased 49% to $157.4 million
Denver,
CO - February 24, 2011 - Thompson Creek Metals Company Inc. (NYSE: TC,
TSX: TCM, TCM.WT, TSX-V:TRX.WT, TRX.WT.A) (�Company� or �Thompson Creek�), a growing, diversified North American
mining company, today announced financial results for the three months
and full year ended December 31, 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.
Financial
Highlights:
��Thompson Creek�s 2010 financial
performance was greatly improved from a year earlier mainly as a result
of increased production, sales volumes and molybdenum prices,� said Kevin
Loughrey, Chairman and Chief Executive Officer.
�The Company produced a record 32.6 million pounds of molybdenum in 2010,
and sold a record 29.1 million pounds of molybdenum from its mines for an
average realized molybdenum sales price for the year of $15.67, up 39%
from $11.28 in 2009. We anticipate that over the balance 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,� said Mr. Loughrey.
Fourth
Quarter Financial Results
Revenue for the quarter ended December
31, 2010 was $156.8 million, up 48% from $106.2 million for the same
period in 2009. The increase in revenue was primarily due to an
increase in molybdenum sales volumes and a higher average realized sales
price for molybdenum in the fourth quarter of $16.05 per pound, up 30%
from $12.37 per pound for the same period in 2009.
Net
Loss for the
quarter ended December 31, 2010 was $45.0 million, or $0.28 per basic and
diluted share, compared to net income of $26.0 million, or $0.19 per
basic and $0.18 per diluted share for the same period in 2009. Net
loss for the fourth quarter of 2010 included a non-cash
unrealized loss on common share purchase warrants of $79.4 million, or
$0.50 per basic and $0.47 per diluted share, and net income for the
fourth quarter of 2009 included a non-cash unrealized gain on common
stock purchase warrants of $5.6 million, or $0.04 per basic and diluted
share.
Non-GAAP
Adjusted Net Income for the quarter ended December 31, 2010 (excluding the non-cash
unrealized loss on the warrants) was $34.4 million, or $0.22 per basic
and $0.20 per diluted share. Non-GAAP adjusted net income for
the fourth quarter of 2009 (excluding the non-cash unrealized gain on
warrants) was $20.4 million, or $0.15 per basic and $0.14 per diluted
share.
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 fourth
quarter of 2010, the value of the outstanding warrants (and the Company�s
reported derivative liability) increased by $79.4 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 fourth
quarter of 2010 was $34.4 million, or $0.22 per basic and $0.20 per
diluted share. Additionally, the Terrane
warrants that continue to remain outstanding were also accounted for
under US GAAP as a derivative liability. The non-cash unrealized
loss on common share purchase warrants of $79.4 million included a $6.7
million loss related to the Terrane
warrants.
Molybdenum
Production
for the quarter ended December 31, 2010 was 9.3 million pounds, up 48%
from 6.3 million pounds in the fourth quarter of 2009. The increase
in production was primarily due to a significantly higher grade of ore
from the Thompson Creek mine.
Average
Cash Cost Per Pound Produced for the quarter ended December 31, 2010 was
$5.81 per pound, compared to $6.61 per pound for the same period in
2009. The decrease in average cash cost per pound was primarily due
to higher production resulting from a significantly higher grade of ore
from the Thompson Creek mine.
Cash
Flow From Operations for the quarter ended December 31, 2010 was $31.6 million,
compared to $38.2 million for the same period in 2009.
Capital
Costs incurred for
the quarter ended December 31, 2010 were $76.5 million, comprised of
$45.2 million of capital costs for the Company�s 75% share of capital
costs for the Endako mill expansion project,
$15.9 million of capital costs for the mines, the Langeloth
facility and Corporate, and $15.4 million of capital costs for Mt.
Milligan.
The capital costs for the fourth quarter of 2010 included a change in
accrual of $10.1 million; therefore, capital expenditures for the fourth
quarter of 2010 were $66.4 million.
Total
Cash, Cash Equivalents and Short-Term Investments at December 31, 2010 were $316.0
million, compared to $511.5 million as of December 31, 2009. Total
debt as of December 31, 2010 was $22.0 million, compared to $12.9 million
as of December 31, 2009.
Conference
Call and Webcast
Thompson
Creek will hold a conference call for analysts and investors to discuss
its 2010 financial results on Friday, February 25, 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 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 42212766 followed by the number sign) from
11:30 a.m. Eastern Time on February 25 to 11:59 p.m. Eastern Time on
March 4. 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 property in Colorado and the
Davidson molybdenum and Berg copper-molybdenum-silver properties in
northern British Columbia. Thompson Creek has approximately 928
employees. Its principal executive office is in Denver, Colorado,
and it also has offices in Vancouver, British Columbia and Toronto,
Ontario. More information is available at www.thompsoncreekmetals.com.
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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. Often, but not always,
forward-looking statements include: statements with respect to
future financial or operating performance of Thompson Creek or its
subsidiaries and it projects; statements regarding future inventory,
capital expenditures and exploration expenditures; 2011 operating
goals; and 2011 molybdenum prices.
Such factors include, among
others, risks related to general business, economic, competitive,
political and social uncertainties including the global economic
conditions, the volatility in molybdenum prices; risks related to
foreign currency fluctuations; energy prices & 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; 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 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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