Nov. 5, 2009 (PR Newswire) --
NYSE: TC
TSX: TCM, TCM.WT
Frankfurt: A6R
TORONTO, Nov. 5 /PRNewswire-FirstCall/ -
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 September 30, 2009 prepared in accordance with Canadian generally accepted accounting principles. All dollar amounts are in U.S. dollars unless otherwise indicated.
"Thompson Creek's financial results improved in the third quarter primarily due to higher molybdenum prices," said Kevin Loughrey, Chairman and Chief Executive Officer. "In addition, our mining operations remained on track to achieve annual production and cost guidance that we had previously announced for 2009.
"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 January 2010 (up from 78% of full capacity currently), and we expect that this will result in an increase of over 20% in the Company's annual molybdenum production to a range of 29 to 32 million pounds in 2010 from 24 to 26 million pounds in 2009."
Third-Quarter Financial Results
The Company's revenues declined by 65% to $114.4 million in the third quarter of 2009 from $331.1 million a year earlier primarily due to a 61% decline in the average realized price for molybdenum and upgraded products to $12.75 per pound from $32.85 per pound. Sales volume for molybdenum produced at the Company's mines was 8% higher at 7.4 million pounds in the third quarter versus 6.9 million pounds a year earlier.
After the deduction of operating, selling, marketing, depreciation, depletion, amortization and accretion costs, the Company generated income from mining and processing operations totaling $43 million in the third quarter, down from $159 million a year earlier.
Third-quarter net income was $19.7 million or $0.16 per basic and $0.14 per diluted common share, compared with $100.6 million or $0.80 per basic and $0.74 per diluted common share in the third quarter of 2008.
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 November 5, 2009, there were 139.2 million common shares, 24.5 million warrants and 5.1 million employee options outstanding.
Third-quarter cash flow from operating activities was $28.6 million, compared with $110.3 million a year earlier.
Selected Consolidated Operations Information
(Unaudited) Three months ended Nine months ended
September 30 September 30
---------------------------------------
2009 2008 2009 2008
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Operations
Molybdenum production from mines
(000's lb)(1) 6,221 6,499 18,992 18,272
Cash cost ($/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 $12.8 million in the third quarter of 2009, comprised of $7 million of sustaining capital expenditures and $5.8 million for the Company's 75% share of capital expenditures for the Endako mill expansion.
Cash, cash equivalents and short-term investments were $478.2 million on September 30, 2009, compared with $262 million at June 30, 2009. On September 16, 2009, the Company completed an equity issue of 15.5 million shares and received $194.6 million in net proceeds.
The Company's total debt (primarily equipment loans) on September 30, 2009 was $14.3 million, compared with $15.6 million on June 30, 2009.
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 $5.67 per pound in the third quarter of 2009, compared with $7.33 per pound 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 at both of the Company's mines in the third quarter compared to the 2008 quarter, and lower costs for grinding media and consumables. 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 cost per pound produced in the third quarter was $5.35 per pound (including deferred stripping costs of $0.99 per pound), compared with $7.38 per pound (including deferred stripping costs of $1.80 per pound) a year earlier. The Endako Mine's cash cost per pound produced was $6.47 per pound, compared with $7.23 per pound a year earlier.
