NYSE: TC TSX: TCM, TCM.WT Frankfurt: A6R TORONTO, May 7
/PRNewswire-FirstCall/ -- Overview (all in U.S. dollars): -
Molybdenum production in the first quarter of 2009 was 6.1 million
pounds, up from 5.6 million pounds in the same period a year
earlier. The first-quarter production level was in line with
current production plans for the year. - Weighted-average cash
costs were reduced to $5.93 per pound produced in the first quarter
from $8.29 per pound a year earlier. - 2009 guidance for cash costs
has been revised to $6.25 to $7.25 per pound from previous guidance
of $7.25 to $8.25 per pound. Production and sales guidance remains
unchanged at 20 to 24 million pounds for the year. - Operating cash
flows were $44.7 million in the first quarter, compared with $63.4
million a year earlier. - Total debt was reduced to $16.9 million
on March 31, 2009 from $17.3 million on December 31, 2008. Total
cash, cash equivalents and short-term investments at March 31, 2009
were $260.6 million, compared with $258 million on December 31,
2008. - First-quarter net income was $11.2 million or $0.09 per
basic and diluted common share, compared with $46.8 million or
$0.41 per basic and $0.37 per diluted common share in the first
quarter of 2008. - The decline in net income was due primarily to a
69% reduction in the average realized price on molybdenum and
upgraded product sales to $10.14 per pound in the first quarter
from $32.69 per pound a year earlier, which resulted in a
year-over-year decrease in revenues to $78.9 million from $254.8
million. Note: A conference call and webcast for analysts and
investors is scheduled for Friday, May 8, 2009 at 8:30 a.m.
Eastern. Thompson Creek Metals Company Inc. ("the Company"), one of
the world's largest publicly traded, pure molybdenum producers,
today announced financial results for the three months ended March
31, 2009 prepared in accordance with Canadian generally accepted
accounting principles. All dollar amounts are in U.S. dollars
unless otherwise indicated. "Thompson Creek's mine production
during the first quarter of 2009 was consistent with our current
plans to produce 20 to 24 million pounds of molybdenum in 2009,"
said Kevin Loughrey, Chairman and Chief Executive Officer.
"However, the reduction in molybdenum production costs exceeded
expectations and as a result we have lowered our 2009 estimated
range for cash production costs to $6.25 to $7.25 per pound from
previous guidance of $7.25 to $8.25 per pound. "While overall the
molybdenum market continues to experience weaker conditions than it
did for most of last year, we are encouraged by the upturn in price
in the past two weeks and we continue to expect a sustained
recovery in molybdenum demand and prices in the medium-term future
as the world economy recovers from recession," Mr. Loughrey stated.
"Given our strong cash position and recent actions to reduce
production and conserve cash, Thompson Creek is well positioned not
only to weather additional market weakness should it occur but also
to raise production again relatively quickly when demand recovers
and to consider possible acquisitions that will benefit
shareholders." First-Quarter Financial Results The Company's
revenues declined by 69% to $78.9 million in the first quarter of
2009 from $254.8 million a year earlier primarily due to a 69%
decline in the average realized price for molybdenum and upgraded
products to $10.14 per pound from $32.69 per pound. Sales volume
was slightly lower at 7.5 million pounds in the latest quarter
versus 7.7 million pounds a year earlier. After the deduction of
operating, selling, marketing, depreciation, depletion and
accretion costs, the Company generated income from mining and
processing operations totaling $12 million the first quarter, down
from $77.3 million a year earlier. Net income was $11.2 million or
$0.09 per basic and diluted common share, compared with $46.8
million or $0.41 per basic and $0.37 per diluted share in the first
quarter of 2008. The per-share figures are based on a
weighted-average number of shares outstanding of 122.3 million
(basic and diluted) in the first quarter of 2009, compared with
113.5 million (basic) and 127.7 million (diluted) in the first
quarter of 2008. At May 6, 2009, there were 122.5 million common
shares, 24.5 million warrants and 8.5 million employee options
outstanding. First-quarter cash flow from operating activities was
$44.7 million, compared with $63.4 million a year earlier. Capital
expenditures totaled $18.7 million in the first quarter of 2009,
comprised of $14.9 million of sustaining capital expenditures and
$3.8 million for the Company's 75% share of capital expenditures
for the Endako mill expansion. Cash, cash equivalents and
short-term investments were $260.6 million at March 31, 2009,
compared with $258 million at December 31, 2008. The Company's
total debt (primarily equipment loans) on March 31, 2009 was $16.9
million, down from $17.3 million on December 31, 2008. Selected
Consolidated Operations Information (Unaudited) Three months ended
March 31, --------------------------- 2009 2008 -------------
------------- Operations Molybdenum production from mines (000's
lb)(1) 6,057 5,589 Cash cost ($/lb produced)(2) $ 5.93 $ 8.29
Molybdenum sold (000's lb) from: Thompson Creek Mine and Endako
Mine production 6,549 4,082 Product purchased, processed and resold
898 3,572 ------------- ------------- 7,447 7,654 -------------
------------- Average realized price ($/lb) $ 10.14 $ 32.69 (1)
Mined production pounds are molybdenum oxide and high performance
molybdenum disulfide ("HPM") from the Corporation's share of the
production from the mines; excludes molybdenum processed from
purchased product. (2) Weighted-average of Thompson Creek Mine and
Endako Mine cash costs (mining, milling, roasting and packaging)
for molybdenum oxide and HPM produced in the period, including all
stripping costs. Cash cost excludes: the effect of purchase price
adjustments, the effects of changes in inventory, and depreciation,
depletion, amortization and accretion. The cash cost for Thompson
Creek, which only produces sulfide on site, includes an estimated
molybdenum loss and an allocation of roasting and packaging costs
from the Langeloth facility. The Company's mines produced 6.1
million pounds of molybdenum in the first quarter, up from 5.6
million pounds in the first quarter of 2008. The Thompson Creek
Mine produced 4.4 million pounds, up from 3.6 million pounds a year
earlier, while the Company's 75% share of the Endako Mine's
production was 1.7 million, compared with 2 million pounds a year
earlier. The weighted-average cash costs were $5.93 per pound
produced in the first quarter of 2009, compared with $8.29 per
pound produced a year earlier. The decline was primarily due to
increased production as a result of higher ore grades and
recoveries at the Thompson Creek Mine together with lower mining
and milling costs from both of the Company's mines in the latest
quarter compared to the 2008 quarter. The cash costs include
production costs for the mining, milling, roasting and packaging of
molybdenum oxide and high-performance molybdenum disulfide (HPM)
and deferred stripping costs (mining costs related to future
planned production phases). At the Thompson Creek Mine, cash costs
in the first quarter were $5.83 per pound produced (including
deferred stripping costs of $1.67 per pound produced), compared
with $8.76 per pound produced (including deferred stripping costs
of $0.77 per pound produced) a year earlier. The Endako Mine's cash
costs were $6.17 per pound produced, compared with $7.41 per pound
produced a year earlier. There were no deferred stripping costs at
Endako. Outlook Molybdenum prices declined gradually during the
first quarter of 2009, falling in 11 of the first 13 weeks of the
year. The monthly Platts Metals Week published molybdenum oxide
price averaged $8.94 per pound during the quarter. For the month of
April 2009, this published price declined further to an average
$7.90 per pound. The published Platts Metals Week price on April
30, 2009 was a range of $8.30 to $8.80 per pound. Based on market
trends experienced in the January to April period, the Company
expects its average realized price to be lower in the second
quarter than in the first quarter of 2009. Additionally, the
Company's sales volumes are expected to be less during the 2009
second quarter as the Company continues its efforts to match
production with the anticipated level of sales. For 2009, previous
guidance for molybdenum production levels of 20 to 24 million
pounds remains unchanged. Expected production from the Thompson
Creek Mine is 15 to 17 million pounds (unchanged from previous
guidance), and the Company's 75% share of Endako Mine's expected
production is 5 to 7 million pounds (unchanged from previous
guidance). Given the lower cash cost per pound produced for the
2009 first quarter, the anticipated average cash cost per pound
produced in 2009 has been revised to an estimated $6.25 to $7.25
per pound (compared to previous guidance of $7.25 to $8.25 per
pound), with the Thompson Creek Mine expected to be approximately
$6.00 to $7.00 per pound (compared to previous guidance of $7.00 to
$8.00 per pound) and the Endako Mine at an estimated cash cost of
$7.00 to $8.00 per pound (compared to previous guidance of $8.00 to
$9.00 per pound). This assumes a US$/Cdn$ exchange rate of 1.20 for
the last nine months of 2009. The revised 2009 Thompson Creek Mine
cash cost per pound produced includes approximately $30 million of
stripping costs, amounting to $1.75 to $2.00 per pound produced
(compared to previous guidance of $40 million of stripping costs or
$2.30 to $2.60 per pound produced) related to future planned
production phases. The 2009 Endako Mine operating plan has minimal
stripping costs. The decline in the expected cash cost per pound
produced was primarily due to the result of favorable foreign
exchange rates in the first quarter of 2009 (converting Cdn$ costs
to US$ costs) and lower mining and milling costs, including lower
grinding media, consumables and electrical power costs together
with lower equipment maintenance costs. For 2009, the Company's
share of estimated sustaining capital expenditures at both mines
and the Langeloth Metallurgical Facility is expected to be $38
million and its 75% share of the estimated Endako mill expansion
capital expenditures is expected to be $22 million. Due to the
slowing demand for molybdenum and sharp decline in molybdenum
prices in the 2008 fourth quarter, the Endako mill expansion
project was postponed until economic conditions improve. Through
March 31, 2009, the Company's 75% share of Endako expansion capital
expenditures was $47.1 million. The Company's remaining commitment
for capital spending on this project while it is postponed is $18.2
million in the last nine months of 2009 and $18 million in 2010.
The Company's 2009 sales of molybdenum produced from its own mines
are expected to be 20 to 24 million pounds, with additional sales
of molybdenum purchased, processed and resold in 2009 expected to
be 3 to 4 million pounds. The Company believes the long-term
outlook for its business is positive. The Company is positioned to
react quickly to further changes in the molybdenum market in order
to ensure that working capital levels are maintained. Operating
cash flows will be impacted by approximately $20 to $24 million for
every $1.00 per pound change in the molybdenum price. Additional
information on the Company's financial position is available in
Thompson Creek's Financial Statements and Management's Discussion
and Analysis for the period ended March 31, 2009, which will be
filed with SEDAR (http://www.sedar.com/) and posted on the
Company's website (http://www.thompsoncreekmetals.com/). Conference
call and webcast Thompson Creek will hold a conference call for
analysts and investors to discuss its first-quarter 2009 financial
results on Friday, May 8, 2009 at 8:30 a.m. (Eastern). 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
416-644-3421 or 1-800-595-8550 about five minutes prior to the
start of the call. A live audio webcast of the conference call will
be available at http://www.newswire.ca/ and
http://www.thompsoncreekmetals.com/. An archived recording of the
call will be available at 416-640-1917 or 1-877-289-8525 (Passcode
21303485 followed by the number sign) from 10:30 a.m. on May 8 to
11:59 p.m. on May 15. 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 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 has
two high-grade underground molybdenum deposits, the Davidson
Deposit near Smithers, B.C., and the Mount Emmons Deposit near
Crested Butte, Colorado. The Company is continuing to pursue
permitting of the Davidson Project and is evaluating the Mount
Emmons Deposit. The Company has approximately 750 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
http://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 http://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 http://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 the 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 http://www.sedar.com/ and is incorporated in its Annual
Report on Form 40-F filed with the SEC which is available at
http://www.sec.gov/ and subsequent continuous disclosure documents
available at http://www.sedar.com/ and http://www.sec.gov/ for
further information on mineral reserves and mineral resources,
which is subject to the qualifications and notes set forth therein.
Consolidated Balance Sheets (US dollars in millions - Unaudited)
March 31, December 31, 2009 2008 ------------- ------------- Assets
Current assets Cash and cash equivalents $ 160.3 $ 258.0 Short-term
investments 100.3 - Accounts receivable 31.6 55.0 Product inventory
45.4 57.1 Material and supplies inventory 35.0 36.2 Prepaid expense
and other current assets 6.4 6.3 Income and mining taxes
recoverable 1.3 1.4 ------------- ------------- 380.3 414.0 Other
assets 3.1 3.0 Restricted cash 15.0 14.2 Reclamation deposits 29.2
26.9 Property, plant and equipment 600.4 594.1 Goodwill 47.0 47.0
------------- ------------- $ 1,075.0 $ 1,099.2 -------------
------------- ------------- ------------- Liabilities Current
liabilities Accounts payable and accrued liabilities $ 24.9 $ 36.5
Income and mining taxes payable 0.1 7.5 Current portion of
long-term debt 5.4 5.6 Future income and mining taxes 7.5 8.1
------------- ------------- 37.9 57.7 Long-term debt 11.5 11.7
Other liabilities 21.2 21.8 Asset retirement obligations 23.5 23.3
Future income and mining taxes 159.9 167.2 -------------
------------- 254.0 281.7 ------------- ------------- Shareholders'
Equity Common shares 484.1 484.1 Common share warrants 35.0 35.0
Contributed surplus 41.8 40.4 Retained earnings 315.5 304.3
Accumulated other comprehensive loss (55.4) (46.3) -------------
------------- 821.0 817.5 ------------- ------------- $ 1,075.0 $
1,099.2 ------------- ------------- ------------- -------------
Consolidated Statements of Income (US dollars in millions, except
per share amounts - Unaudited) Three months ended
--------------------------- March 31, December 31, 2009 2008
------------- ------------- Revenues Molybdenum sales $ 75.5 $
250.2 Tolling and calcining 3.4 4.6 ------------- -------------
78.9 254.8 ------------- ------------- Cost of sales Operating
expenses 53.3 166.6 Selling and marketing 1.4 2.5 Depreciation,
depletion and amortization 11.9 7.7 Accretion 0.3 0.7 -------------
------------- 66.9 177.5 ------------- ------------- Income from
mining and processing 12.0 77.3 Other (income) expenses General and
administrative 3.7 3.4 Stock-based compensation 1.4 1.7 Exploration
and development 1.7 1.0 Gain on foreign exchange (3.2) (1.5)
Interest and finance fees 0.3 6.7 Interest income (0.4) (0.8) Other
(0.4) 0.8 ------------- ------------- 3.1 11.3 -------------
------------- Income before income and mining taxes 8.9 66.0 Income
and mining taxes (recoverable) Current 3.3 25.5 Future (5.6) (6.3)
------------- ------------- (2.3) 19.2 ------------- -------------
Net income $ 11.2 $ 46.8 ------------- ------------- -------------
------------- Net income per share Basic $ 0.09 $ 0.41
------------- ------------- ------------- ------------- Diluted $
0.09 $ 0.37 ------------- ------------- ------------- -------------
Consolidated Statements of Cash Flows (US dollars in millions -
Unaudited) Three months ended --------------------------- March 31,
December 31, 2009 2008 ------------- ------------- Operating
Activities Net income $ 11.2 $ 46.8 Items not affecting cash:
Depreciation, depletion and amortization 11.9 7.7 Accretion expense
0.3 0.7 Accretion of finance fees - 0.6 Stock-based compensation
1.4 1.7 Future income taxes recoverable (5.6) (6.3) Unrealized loss
on derivative instruments 0.1 1.0 Change in non-cash working
capital 25.4 11.2 ------------- ------------- Cash generated by
operating activities 44.7 63.4 ------------- -------------
Investing Activities Short-term investments (100.3) - Property,
plant and equipment (27.6) (8.1) Deferred stripping costs (7.3)
(2.8) Restricted cash (0.8) (2.4) Reclamation deposit (2.4) (0.2)
Acquisition cost - (100.0) ------------- ------------- Cash used in
investing activities (138.4) (113.5) ------------- -------------
Financing Activities Proceeds from issuance of common shares - 0.4
Repayment of long-term debt (1.3) (17.4) Proceeds from revolving
facility - 22.5 Repayment of revolving facility - (22.5)
------------- ------------- Cash used in financing activities (1.3)
(17.0) ------------- ------------- Effect of exchange rate changes
on cash (2.7) 0.9 ------------- ------------- Decrease in cash and
cash equivalents (97.7) (66.2) Cash and cash equivalents, beginning
of period 258.0 113.7 ------------- ------------- Cash and cash
equivalents, end of period $ 160.3 $ 47.5 -------------
------------- ------------- ------------- CONTACT: Wayne
Cheveldayoff, Director of Investor Relations, Thompson Creek Metals
Company Inc., Tel: (416) 860-1438, Toll free: 1-800-827-0992, ; Dan
Symons, Renmark Financial Communications Inc., Tel.: (514)
939-3989, DATASOURCE: Thompson Creek Metals Company Inc. CONTACT:
Wayne Cheveldayoff, Director of Investor Relations, Thompson Creek
Metals Company Inc., Tel: (416) 860-1438, Toll free:
1-800-827-0992, ; Dan Symons, Renmark Financial Communications
Inc., Tel.: (514) 939-3989,
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