Thompson Creek Provides Update on Capital Expenditure Plans
Toronto, ON - December 5, 2008 - Thompson Creek Metals Company Inc. (TSX: TCM / NYSE: TC) (the �Company�), one of the world�s largest publicly traded, pure molybdenum producers, today announced a reduction in planned capital expenditures including the postponement of the completion of the expansion project at its 75%-owned Endako Mine.
�Given the sharp decline in the molybdenum price, Thompson Creek has decided to curtail planned capital expenditures. This initiative to conserve cash leaves Thompson Creek with a strong cash position and minimal debt of $18.1 million in equipment loans and puts the Company in an excellent position to weather the downturn in worldwide economic activity,� said Kevin Loughrey, Chairman and Chief Executive Officer.
�While work on the Endako expansion project will be suspended, we will leave the project in a position to start up again when the molybdenum market improves. We will complete certain activities already underway at the mine site and the purchase and storage of equipment on which we have already made partial payment. All or some portion of the equipment purchased may be funded through the use of equipment financing.�
The Company estimates it will have cash balances of approximately $225 million on December 31, 2008. The Company also has available an undrawn $35 million revolving bank credit facility.
Capital spending in 2009 is expected to be $69 million, including $36 million for sustaining capital expenditures and $33 million for the Company�s share of Endako expansion capital expenditures. The Company�s share of Endako expansion capital expenditures in 2008 is expected to be approximately $37 million.
Postponement of the Endako expansion is the second initiative by Thompson Creek to reduce planned capital expenditures until market conditions improve. The Company announced postponement of the Davidson Project on November 6, 2008.
Prior to these changes, Thompson Creek was planning capital expenditures of $600 million over three years 2008 to 2010 including $280 million for its share of the Endako expansion, $109 million for the Davidson Project and the remainder for maintenance capital expenditures. Of the $600 million of capital expenditures, approximately $300 million had originally been planned for 2009.
Thompson Creek expects to achieve its previously announced 2008 operational guidance for molybdenum sales of 22 million pounds, molybdenum production of 25 to 26 million pounds and average cash costs to produce molybdenum oxide of $7.30 per pound (assuming a US/Canada exchange rate of 1.20 for the fourth quarter of 2008). Management currently is not revising its production guidance of 31.5 to 34 million pounds of molybdenum in 2009. However, the Company can adjust its 2009 production plans promptly if market conditions worsen.
The Company is currently assessing potential impairments of goodwill and other assets. If the current weak market conditions continue through the end of this year, the Company may be required to record impairments against goodwill and potentially against other assets.
About Thompson Creek Metals Company Inc.
Thompson Creek Metals Company Inc. is one of the largest publicly traded, pure molybdenum producers in the world. The Company owns the Thompson Creek open-pit molybdenum mine and mill in Idaho, a metallurgical roasting facility in Langeloth, Pennsylvania and a 75% share of the Endako open-pit mine, mill and roasting facility in northern British Columbia. Thompson Creek is also evaluating two high-grade underground molybdenum deposits, the Davidson Deposit near Smithers, B.C., and the Mount Emmons Deposit near Crested Butte, Colorado. The Company has approximately 800 employees. Its principal executive office is in Denver, Colorado, and it has other executive offices in Toronto, Ontario and Vancouver, British Columbia. More information is available at www.thompsoncreekmetals.com.
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 which may include, but is not limited to, statements with respect to the timing and amount of estimated future production. Often, but not always, forward-looking statements can be identified by the use of words such as �plans�, �expects�, �is expected�, �budget�, �scheduled�, �estimates�, �forecasts�, �intends�, �anticipates�, or �believes� or variations (including negative variations) of such words and phrases, or state that certain actions, events or results �may�, �could�, �would�, �might� or �will� be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Thompson Creek and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those factors discussed in the section entitled �Risk Factors� in Thompson Creek�s current annual information form which is available on SEDAR at www.sedar.com and is incorporated in its Annual Report on Form 40-F filed with the United States Securities and Exchange Commission which is available at www.sec.gov. Although Thompson Creek has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of t he date of this news release and Thompson Creek does not undertake to update any such forward-looking statements, except in accordance with applicable securities laws. 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, readers are cautioned not to place undue reliance on forward-looking statements. Readers should refer to Thompson Creek�s current annual information form which is available on SEDAR at www.sedar.com and is incorporated in its Annual Report on Form 40-F filed with the SEC which is available at www.sec.gov and subsequent continuous disclosure documents available at www.sedar.com an d www.sec.gov for further information on mineral reserves and mineral resources, which is subject to the qualifications and notes set forth therein.