Thompson Creek announces third-quarter 2009 financial results and production
and cost guidance for 2010
NYSE: TCTSX: TCM, TCM.WT Frankfurt: A6R
Overview (all in U.S. dollars): - Net income in the third quarter was $19.7 million or $0.16 per basic and $0.14 per diluted share, compared with a net loss in the second quarter of $0.4 million or $0.00 per basic and diluted common share. The improved financial results were due to both higher realized prices and an increase in sales of molybdenum from the Company's mines to 7.4 million pounds in the third quarter from 6.5 million in the second quarter. - Molybdenum production was 6.2 million pounds in the third quarter of 2009, down from 6.7 million pounds in the second quarter. The reduction was due to a planned two-week shutdown of both mines during the third quarter. - Weighted-average cash cost per pound produced rose to $5.67 per pound in the third quarter from $5.21 per pound in the second quarter. - 2009 guidance for molybdenum production has been revised to 24 to 26 million pounds (versus previous guidance of 22 to 26 million pounds). Sales of molybdenum produced at the Company's mines this year are expected to be 26 to 27 million pounds (up from previous guidance of 22 to 26 million pounds). The guidance range for cash cost per pound produced has been narrowed to $5.80 to $6.30 per pound (from previous guidance of $5.75 to $7.00 per pound). - For 2010, the Company expects molybdenum production will be 29 to 32 million pounds and cash cost per pound produced is estimated at $6 to $7 per pound. Sales of molybdenum produced at the Company's mines are expected to be 27 to 30 million pounds. - Total cash, cash equivalents and short-term investments at September 30, 2009 were $478.2 million, including $194.6 million in net proceeds from an equity issue completed in the third quarter. Total debt at quarter-end was $14.3 million. - Average realized price on molybdenum and upgraded product sales was $12.75 per pound in the third quarter, up from $9.41 per pound in the second quarter and $10.14 per pound in the first quarter of 2009. - Total capital expenditures were $47.5 million in the first nine months of 2009 and guidance for the full year has been revised to $61 million (from previous guidance of $80 million). Note: A conference call and webcast for analysts and investors is scheduled for Friday, November 6, 2009 at 8:30 a.m. Eastern.
Thompson Creek Metals Company Inc. ("Company"), one of the world's largest publicly traded, pure molybdenum producers, today announced financial results for the three and nine months ended
"Thompson Creek's financial results improved in the third quarter primarily due to higher molybdenum prices," said
"Due to the improved outlook for molybdenum market fundamentals, the Company intends to operate the mill at the Thompson Creek Mine at full capacity starting in
Third-Quarter Financial Results
The Company's revenues declined by 65% to
After the deduction of operating, selling, marketing, depreciation, depletion, amortization and accretion costs, the Company generated income from mining and processing operations totaling
Third-quarter net income was
The per-share figures are based on a weighted-average number of shares outstanding of 125.9 million basic and 136.2 million diluted in the third quarter of 2009, compared with 125.0 million basic and 136.8 million diluted in the third quarter of 2008. At
Third-quarter cash flow from operating activities was
Selected Consolidated Operations Information (Unaudited) Three months ended Nine months ended September 30 September 30 --------------------------------------- 2009 2008 2009 2008 --------------------------------------- Operations Molybdenum production from mines (000's lb)(1) 6,221 6,499 18,992 18,272 Cash cost ($/lb produced)(2) $ 5.67 $ 7.33 $ 5.59 $ 8.11 Molybdenum sold (000's lb) Thompson Creek Mine and Endako Mine production 7,445 6,879 20,499 15,791 Product purchased, processed and resold 1,324 3,044 3,219 9,116 --------- --------- --------- --------- 8,769 9,923 23,718 24,907 --------- --------- --------- --------- Average realized price ($/lb) $ 12.75 $ 32.85 $ 10.90 $ 32.75 (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 Metallurgical Facility, and the transportation cost from Thompson Creek to Langeloth.
Capital expenditures totaled
Cash, cash equivalents and short-term investments were
The Company's total debt (primarily equipment loans) on
The Company's mines produced 6.2 million pounds of molybdenum in the third quarter, down from 6.5 million pounds in the third quarter of 2008. There was a planned two-week shutdown at both mines during the third quarter of 2009. The Thompson Creek Mine produced 4.4 million pounds, up from 4.3 million pounds a year earlier, while the Company's 75% share of the Endako Mine's production was 1.8 million, compared with 2.2 million pounds a year earlier.
The weighted-average cash cost per pound produced was
At the Thompson Creek Mine, cash cost per pound produced in the third quarter was
Summary of Quarterly Results (US$ in millions except per pound and per share amounts - Unaudited) Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 2008 2008 2009 2009 2009 ------------------------------------------------- Operations Mined molybdenum production (000's lb) 6,499 7,773 6,057 6,714 6,221 Cash cost ($/lb produced)(1) $7.33 $6.01 $5.93 $5.21 $5.67 Molybdenum sold (000's lb): Thompson Creek Mine and Endako Mine production sold 6,879 6,558 6,549 6,505 7,445 Product purchased, processed and resold 3,044 1,565 898 997 1,324 ------------------------------------------------- 9,923 8,123 7,447 7,502 8,769 ------------------------------------------------- Average realized price ($/lb) $32.85 $21.72 $10.14 $9.41 $12.75 Financial Revenue $331.1 $181.6 $78.9 $73.8 $114.4 Income from mining and processing $159.0 $88.5 $12.0 $15.3 $43.0 Net income (loss) $100.6 $(24.6) $11.2 $(0.4) $19.7 Income (loss) per share - basic $0.80 $(0.20) $0.09 $(0.00) $0.16 - diluted $0.74 $(0.20) $0.09 $(0.00) $0.14 Cash flow generated by operating activities $110.3 $181.0 $44.7 $13.4 $28.6
Nine-Month Financial Results
The Company's revenues in the first nine months of 2009 totaled
After the deduction of operating, selling, marketing, depreciation, depletion, amortization and accretion costs, the Company generated income from mining and processing operations totaling
Net income was
The per-share figures are based on a weighted-average number of shares outstanding of 123.5 million basic and 125.1 diluted shares in the first nine months of 2009, compared with 118.5 million (basic) and 133.2 million (diluted) a year earlier.
Cash flow from operating activities in the first nine months of 2009 was
Capital expenditures totaled
Outlook
The Company's realized sales price averaged
Molybdenum production in 2009 is estimated to be 24 to 26 million pounds (versus previous guidance on
The average cash cost per pound produced in 2009 is estimated at
The 2009 estimated Thompson Creek Mine cash cost per pound produced includes approximately
For 2009, the Company's share of estimated sustaining capital expenditures at both mines and the Langeloth Metallurgical Facility are expected to be approximately
2010 Outlook ------------
For 2010, the Company expects molybdenum production volumes to be 29 to 32 million pounds, with the Thompson Creek Mine producing 22 to 24 million pounds and the 75% share of the Endako Mine production at 7 to 8 million pounds. The anticipated average cash cost per pound produced is estimated at
The Company expects to sell 27 to 30 million pounds from its own mines in 2010. The Company has some discretion in building or depleting inventory levels depending upon the economic conditions and the related demand and sales prices for molybdenum. For 2010, the Company currently has fixed-price forward sales contracts for approximately 1.2 million pounds at an average fixed price of
In the third quarter of 2009, the Company's Board of Directors approved the resumption of the mill expansion project at its 75%-owned Endako Mine (subject to the joint venture partner approval). The expansion project had been postponed in late 2008. As of
The Company expects to conduct development and exploration drilling at its operating mines totalling
In 2010, the Company expects to spend approximately
Accounting Change
The Company has determined that as of
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
Conference call and webcast
Thompson Creek will hold a conference call for analysts and investors to discuss its third-quarter 2009 financial results on
To participate in the call, please dial 416-644-3425 or 1-800-589-8577 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 call will be available at 416-640-1917 or 1-877-289-8525 (Access code 4169885 followed by the number sign) from
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 evaluating the Mount Emmons Deposit, a high-grade underground molybdenum deposit near Crested Butte, Colorado. Thompson Creek has an option to acquire up to 75% of the property. The Company is continuing to pursue permitting of the Davidson Deposit, a high-grade underground molybdenum deposit near Smithers, B.C. The Company has approximately 750 employees. Its principal executive office is in
Cautionary Note Regarding Forward-Looking Statements ----------------------------------------------------
This news release contains "forward-looking information" within the meaning of the
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 and 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) September 30, December 31, 2009 2008 -------------- ------------- Assets Current assets Cash and cash equivalents $ 303.5 $ 258.0 Short-term investments 174.7 - Accounts receivable 55.7 55.0 Product inventory 45.6 57.1 Material and supplies inventory 34.6 36.2 Prepaid expense and other current assets 4.2 6.3 Income and mining taxes recoverable 3.0 1.4 -------------- ------------- 621.3 414.0 Other assets 1.9 3.0 Restricted cash 16.1 14.2 Reclamation deposits 30.1 26.9 Property, plant and equipment 664.4 594.1 Goodwill 47.0 47.0 -------------- ------------- $ 1,380.8 $ 1,099.2 -------------- ------------- -------------- ------------- Liabilities Current liabilities Accounts payable and accrued liabilities $ 31.9 $ 36.5 Income and mining taxes payable 8.2 7.5 Current portion of long-term debt 4.4 5.6 Future income and mining taxes 6.1 8.1 -------------- ------------- 50.6 57.7 Long-term debt 9.9 11.7 Other liabilities 21.3 21.8 Asset retirement obligations 24.9 23.3 Future income and mining taxes 172.4 167.2 -------------- ------------- 279.1 281.7 -------------- ------------- Shareholders' Equity Common shares 691.8 484.1 Common share warrants 35.0 35.0 Contributed surplus 42.5 40.4 Retained earnings 334.8 304.3 Accumulated other comprehensive loss (2.4) (46.3) -------------- ------------- 1,101.7 817.5 -------------- ------------- $ 1,380.8 $ 1,099.2 -------------- ------------- -------------- ------------- Consolidated Statements of Income (US dollars in millions, except per share amounts - Unaudited) Three months ended Nine months ended September 30 September 30 ------------------- ------------------- 2009 2008 2009 2008 --------- --------- --------- --------- Revenues Molybdenum sales $ 111.8 $ 325.9 $ 258.5 $ 815.7 Tolling and calcining 2.6 5.2 8.6 14.1 --------- --------- --------- --------- 114.4 331.1 267.1 829.8 --------- --------- --------- --------- Cost of sales Operating expenses 55.7 155.2 153.6 447.5 Selling and marketing 1.9 3.0 4.4 8.0 Depreciation, depletion and amortization 13.4 13.6 37.6 31.2 Accretion 0.4 0.3 1.1 1.4 --------- --------- --------- --------- 71.4 172.1 196.7 488.1 --------- --------- --------- --------- Income from mining and processing 43.0 159.0 70.4 341.7 Other (income) expenses General and administrative 3.7 6.6 11.5 15.7 Stock-based compensation 0.9 4.8 6.3 13.0 Exploration and development 1.2 1.2 4.9 2.5 Loss (gain) on foreign exchange 6.8 (2.8) 10.8 (5.5) Interest and finance fees 0.4 0.1 0.9 14.9 Interest income (0.8) (0.7) (1.8) (2.3) Other (0.1) (0.3) (0.5) (0.4) --------- --------- --------- --------- 12.1 8.9 32.1 37.9 --------- --------- --------- --------- Income before income and mining taxes 30.9 150.1 38.3 303.8 Income and mining taxes (recoverable) Current 9.2 39.5 16.1 90.5 Future 2.0 10.0 (8.3) 5.5 --------- --------- --------- --------- 11.2 49.5 7.8 96.0 --------- --------- --------- --------- Net income $ 19.7 $ 100.6 $ 30.5 $ 207.8 --------- --------- --------- --------- --------- --------- --------- --------- Net income per share Basic $ 0.16 $ 0.80 $ 0.25 $ 1.75 --------- --------- --------- --------- --------- --------- --------- --------- Diluted $ 0.14 $ 0.74 $ 0.24 $ 1.56 --------- --------- --------- --------- --------- --------- --------- --------- Consolidated Statements of Comprehensive Income (US dollars in millions - Unaudited) Three months ended Nine months ended September 30 September 30 ------------------- ------------------- 2009 2008 2009 2008 --------- --------- --------- --------- Net income $ 19.7 $ 100.6 $ 30.5 $ 207.8 Foreign currency translation adjustments 26.9 (14.6) 43.9 (23.9) --------- --------- --------- --------- Comprehensive income $ 46.6 $ 86.0 $ 74.4 $ 183.9 --------- --------- --------- --------- --------- --------- --------- --------- Consolidated Statements of Cash Flows (US dollars in millions - Unaudited) Three months ended Nine months ended September 30 September 30 ------------------- ------------------- 2009 2008 2009 2008 --------- --------- --------- --------- Operating Activities Net income $ 19.7 $ 100.6 $ 30.5 $ 207.8 Items not affecting cash: Depreciation, depletion and amortization 13.4 13.6 37.6 31.2 Accretion expense 0.4 0.3 1.1 1.4 Amortization of finance fees - - - 5.4 Stock-based compensation 0.9 4.8 6.3 13.0 Future income taxes (recoverable) 2.0 10.0 (8.3) 5.5 Unrealized loss (gain) on derivative instruments (0.8) (3.9) 0.9 (5.3) Change in working capital accounts (7.0) (15.1) 18.4 (22.4) --------- --------- --------- --------- Cash generated by operating activities 28.6 110.3 86.5 236.6 --------- --------- --------- --------- Investing Activities Short-term investments 9.6 - (172.2) - Property, plant and equipment (13.1) (26.1) (54.4) (54.7) Deferred stripping costs (4.4) (7.8) (18.8) (20.7) Restricted cash (0.1) 0.6 (1.9) (3.3) Reclamation deposit (0.1) (0.2) (2.6) (0.7) Acquisition cost - - - (100.0) --------- --------- --------- --------- Cash used in investing activities (8.1) (33.5) (249.9) (179.4) --------- --------- --------- --------- Financing Activities Proceeds from issuance of common shares, net 199.8 - 203.5 223.8 Repayment of long-term debt (1.3) (0.8) (4.0) (238.2) --------- --------- --------- --------- Cash generated (used) by financing activities 198.5 (0.8) 199.5 (14.4) --------- --------- --------- --------- Effect of exchange rate changes on cash 7.0 (3.6) 9.4 (4.8) --------- --------- --------- --------- Increase in cash and cash equivalents 226.0 72.4 45.5 38.0 Cash and cash equivalents, beginning of period 77.5 79.3 258.0 113.7 --------- --------- --------- --------- Cash and cash equivalents, end of period $ 303.5 $ 151.7 $ 303.5 $ 151.7 --------- --------- --------- --------- --------- --------- --------- ---------
For further information: Wayne Cheveldayoff, Director of Investor Relations, Thompson Creek Metals Company Inc., Tel: (416) 860-1438, Toll free: 1-800-827-0992, [email protected]; Dan Symons, Renmark Financial Communications Inc., Tel.: (514) 939-3989, [email protected]
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