Thompson Creek announces first-quarter 2009 financial results



    
    NYSE:   TC
    TSX: TCM, TCM.WT
    Frankfurt: A6R
    

    TORONTO, May 7 /CNW/ -

    
    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
(www.sedar.com) and posted on the Company's website
(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 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 (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 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 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 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)

                                                      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
                                                  ------------- -------------
                                                  ------------- -------------
    




For further information:

For further information: Wayne Cheveldayoff, Director of Investor
Relations, Thompson Creek Metals Company Inc., Tel: (416) 860-1438, Toll free:
1-800-827-0992, wcheveldayoff@tcrk.com; Dan Symons, Renmark Financial
Communications Inc., Tel.: (514) 939-3989, dsymons@renmarkfinancial.com

Organization Profile

Thompson Creek Metals Company Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890