Thompson Creek announces third-quarter financial results and revised outlook



    Shares outstanding: 113,297,000

    TSX: TCM, TCM.WT
    Frankfurt: A6R

    TORONTO, Nov. 9 /CNW/ -

    
    Overview (all in U.S. dollars):
    -   Molybdenum production estimates have been revised downwards for 2007
        and 2008 and upwards for 2009. Production is now estimated at between
        17.5 and 18 million pounds in 2007, between 24 and 25.5 million
        pounds in 2008, and in excess of 34 million pounds in 2009 (not
        including any potential production from the Davidson Deposit).
    -   Revenues were $200.9 million in the third quarter and $716.6 million
        in the first nine months of 2007.
    -   Net income was $23.9 million or $0.21 per basic and $0.18 per diluted
        share in the third quarter and $128.5 million or $1.18 per basic and
        $1.05 per diluted share in the first nine months of the year.
    -   Net income during the third quarter was negatively affected by a
        withholding tax expense of $4.5 million on the cross-border
        distribution of earnings and an $8.7 million annual bonus to
        employees paid for the 12-month period ending June 30, 2007.
    -   Lower molybdenum production due to lower-grade ore increased per-
        pound operating costs in the third quarter.
    -   Debt was reduced by $17.3 million during the third quarter and by a
        total of $150.9 million since the beginning of 2007. At September 30,
        2007, the principal outstanding on the First Lien Credit Facility was
        $252.8 million and cash balances totaled $96.4 million.
    -   Average realized prices on molybdenum sales rose to $32.05 per pound
        in the third quarter from $29.59 in the second quarter and $25.57 in
        the first quarter.
    

    Note: A conference call and webcast for analysts and investors is
    scheduled for Friday, November 9, 2007 at 11:00 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 and nine months ended September 30, 2007 prepared in
accordance with Canadian generally accepted accounting principles. All dollar
amounts are in U.S. dollars unless otherwise indicated.
    "The second half of 2007 is a transition period for the Company as
molybdenum production has been lower than what we achieved in the past and
substantially below the level we will be able to achieve in future years,"
said Kevin Loughrey, President and Chief Executive Officer.
    Production in the third quarter was reduced from the second quarter
mainly due to the processing of low-grade stockpiled ore at the Thompson Creek
mill in Idaho while the stripping of 8.6 million tonnes of waste rock occurred
to gain access to Phase 6 ore at the mine. However, the mill shifted to
processing some Phase 6 ore at the beginning of the fourth quarter. As a
result, molybdenum production is expected to increase. The Company estimates
production from both the Thompson Creek and Endako mines combined will be
between 4.5 and 5 million pounds in the fourth quarter of 2007 compared with
3 million pounds in the third quarter. The Company produced 4.5 million pounds
of molybdenum in the second quarter and 5.4 million pounds in the first
quarter of 2007.
    "We remain confident that the future bodes well for the Company. We
expect molybdenum production from our two existing mines to rise from between
17.5 and 18 million pounds in 2007 to in excess of 34 million pounds in 2009 -
a rise of about 100% -- at a time when molybdenum prices are likely to remain
relatively strong," Mr. Loughrey stated.

    Financial Results

    Thompson Creek's revenues totaled $200.9 million in the third quarter of
2007 and $716.6 million in the first nine months of the year. Third-quarter
revenues were positively affected by a 8.3% rise in the average price realized
on the Company's molybdenum sales between the second and third quarters of
2007. The average realized price was $32.05 per pound in the third quarter,
compared with $29.59 per pound in the second quarter and $25.57 per pound in
the first quarter. No revenues were earned by Thompson Creek in the first nine
months of 2006 as it was in the development stage and did not own operating
properties at the time.
    After the deduction of operating, selling, marketing, depreciation,
depletion and accretion costs, the Company generated income from mining
operations totaling $253.1 million in the first nine months of the year.
Income from mining operations was $60.9 million in the third quarter versus
$104.1 million in the second quarter and $88.1 million in the first quarter of
2007.
    Net income for the third quarter of 2007 was $23.9 million or $0.21 per
basic and $0.18 per diluted share, compared with a net loss of $2.8 million or
$0.06 per basic and diluted share a year earlier. The per-share figures are
based on a weighted-average number of shares outstanding of 112,875,000
(basic) and 129,638,000 (diluted) in the third quarter of 2007 and 50,186,000
(basic and diluted) a year earlier. At November 2, 2007 there were 113,297,000
shares outstanding.
    Net income during the third quarter of 2007 was reduced by a withholding
tax expense of $4.5 million on the cross-border distribution of earnings.
Also, operating and general and administrative expenses in the quarter were
increased by an $8.7 million annual bonus to employees for the 12-month period
ending June 30, 2007.
    Net income in the first nine months of 2007 was $128.5 million or
$1.18 per basic and $1.05 per diluted share, compared with a net loss of $8.1
million or $0.17 per basic and diluted share a year earlier. The per-share
figures are based on a weighted-average number of shares outstanding of
109,151,000 (basic) and 121,985,000 (diluted) in the first nine months of 2007
and 47,755,000 (basic and diluted) a year earlier. Net income in the first
nine months was negatively affected by the inclusion in first-quarter
operating expenses of $29.6 million related to the inventory portion of the
purchase price adjustment associated with the Company's purchase of Thompson
Creek Metals Company USA (formerly known as Thompson Creek Metals Company) in
October 2006.
    Cash flow from operating activities was $29.1 million in the third
quarter and $136.8 million in the first nine months of 2007, compared with
cash used of $3.3 million in the third quarter and $9.7 million in the first
nine months of 2006.
    During the third quarter of 2007, the Company made payments of
$16.7 million to reduce its First Lien Credit Facility to $252.8 million on
September 30, 2007. This followed payments in the first half of the year to
reduce the First Lien Credit Facility by $70.5 million to $269.5 million on
June 30, 2007 and to fully discharge the $61.9 million Second Lien Credit
Facility.
    Since the acquisition of the mining and metallurgical operations in
October 2006, the Company has used $210.6 million of cash to reduce debt by
$149.1 million and to pay the former owner $61.5 million in December 2006 for
certain receivables acquired on the acquisition date.
    The Company is responsible for a future contingent payment amount to the
former owner of up to $125 million depending on the average price for
molybdenum. Since the average price for molybdenum is now expected to exceed
$25 per pound for 2007, the Company will be required to pay the former owner
$100 million of this contingent payment amount in January 2008, and the
Company has enough funds to make the payment. If the average price for
molybdenum exceeds $15 per pound in 2009, an additional $25 million will be
owed to the former owner in January 2010.
    Cash balances were $96.4 million at September 30, 2007, compared with
$94.4 million at June 30, 2007, and $98.1 million at December 31, 2006.
    The Company's mines produced 3.0 million pounds of molybdenum at an
average production cost of $11.63 per pound in the third quarter of 2007 and
12.9 million pounds of molybdenum at an average production cost of $7.69 per
pound in the first nine months of 2007.
    The cited amounts for the third quarter and first nine months reflect
molybdenum produced at the Thompson Creek and Endako mines but do not include
molybdenum purchased from third parties, roasted and sold by the Company. The
average costs reflect production costs, including roasting costs, for
molybdenum from the Thompson Creek and Endako mines but exclude deferred
development stripping costs.
    The Thompson Creek Mine produced 1.1 million pounds at an average cost of
$15.57 per pound in the third quarter. The higher costs reflect the impact of
dividing the relatively fixed costs by a small number of pounds produced.
Production was lower than historic levels in the quarter because the mine was
producing primarily from lower-grade stockpiled material while waste material
was being stripped to access Phase 6 ore. In addition, the development work
for Phase 6 prevented access to exposed ore at the bottom of the Phase 5 pit.
In the first nine months of 2007, the Thompson Creek Mine produced 7.3 million
pounds at an average production cost of $7.20 per pound.
    The Company's 75% share of Endako Mine's production was 1.9 million
pounds at an average cost of $9.27 per pound in the third quarter and
5.6 million pounds at an average cost of $8.34 per pound in the first nine
months of 2007. For both the three and nine-month periods, production was
lower than expected due to lower ore grades and lower recoveries in the
milling process.

    Outlook

    The molybdenum price has remained above $30 per pound subsequent to
quarter-end and with the one month delay in pricing for most contracts, the
Company will receive over $30 per pound for most of its fourth-quarter
production. The current worldwide supply and demand fundamentals suggest that
the molybdenum price will remain relatively strong for the foreseeable future.
    Production for the nine months ending September 30, 2007 was lower than
historic levels largely because the Thompson Creek Mine was processing
lower-grade stockpiled ore while waste stripping occurred to access Phase 6
ore and also because of lower-than-expected grades at the Endako Mine.
Production for the last quarter of 2007 is expected to increase over the third
quarter as more Thompson Creek Mine production will come from Phase 6 ore and
as grades increase. Production for 2007 from both the Thompson Creek Mine and
from the Company's 75% interest in the Endako Mine is now expected to be in
the range of 17.5 to 18 million pounds, which is below the previous estimate
issued in January 2007 of approximately 21 million pounds. Production at the
Thompson Creek Mine is expected to be in the range of 10.0 to 10.3 million
pounds in 2007 while the Company's 75% share of Endako's production is
expected to total between 7.5 and 7.7 million pounds.
    The Company has changed its forecast for molybdenum production for both
2008 and 2009. In summary, the Company expects its molybdenum production to be
in the range of 24.0 to 25.5 million pounds in 2008 versus a previous estimate
of 27 million pounds, and to exceed 34 million pounds in 2009 (without
including any potential from the Davidson deposit), up from a previous
estimate of 29 million pounds for that year.
    The change in production estimates is mainly due to a change in the mine
plan at the Thompson Creek Mine as a result of several factors but primarily
due to the fact that stripping activity took longer than expected and the ore
body was reached 2.5 months later than planned. The shift from lower-grade ore
to higher-grade ore was expected to occur in 2007 but now the mining of some
of the lower-grade ore has been shifted into 2008. The production estimate for
2009, however, has been increased from previous estimates because the annual
average grade will be higher than previously expected, and the mill throughput
has been increased from the prior estimate. Production and cost ranges for the
Thompson Creek Mine and the Company's 75% share of Endako Mine are expected to
be as follows:

    
                                      Molybdenum         Production
                                      Production            Costs
                                   (million pounds)        ($ / lb)
                             2008        2009         2008          2009

    Thompson Creek Mine   16.5 to 17  approx. 26  6.00 to 6.50  approx. 5.00

    Endako Mine (TCM's
     75% interest)        7.5 to 8.5  approx. 8   8.50 to 9.25  approx. 8.50
    

    The Company has initiated a study to examine the feasibility of
increasing production at Endako by increasing mill processing capacity to
50,000 tonnes per day from the current average of 28,000 tonnes per day.
Results of the study were announced by the Company in a news release dated
November 8, 2007.
    The Company is also re-evaluating mineral reserves and developing a new
mine plan for its Thompson Creek Mine. The work is expected to be completed
later this year.
    A feasibility study of the Davidson Project is currently being prepared
by external consultants and is expected to be completed in 2007.
    The Thompson Creek Mine production targets cited above will require
additional capital expenditures as will the Davidson development and any
potential increase in the Endako production. Later this year, once a decision
has been reached on the proposed Endako expansion and when the Davidson
feasibility is completed, the amount and timing of all the capital
expenditures will be finalized along with the related cash flows. The Company
will discuss these capital expenditure requirements with current and potential
lenders at that time.
    Additional information on the Company's financial position is available
in Thompson Creek's Financial Statements and Management's Discussion and
Analysis for the three and nine months ended September 30, 2007, 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 third-quarter 2007 financial results on Friday, November 9, 2007
at 11 a.m. (Eastern).
    Ian McDonald, Executive Chairman, Kevin Loughrey, President and Chief
Executive Officer, and Derek Price, Chief Financial Officer, will be available
to answer questions during the call.
    To participate in the call, please dial 416-644-3430 or 1-800-588-4942
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 21252263 followed by the number sign) from 1:00 p.m.
on November 9 to 11:59 p.m. on November 16. 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. (formerly Blue Pearl Mining Ltd.) 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 75% share of the Endako open-pit mine, mill and roasting facility in
northern British Columbia, and a metallurgical roasting facility in Langeloth,
Pennsylvania. Thompson Creek is also developing the Davidson high-grade
underground molybdenum project near Smithers, B.C. The Company has more than
700 employees. Its head office is in Toronto, Ontario. It also has executive
offices in Denver, Colorado (including sales and marketing) 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" 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 annual information
form for the year ended December 31, 2006 which is available on SEDAR at
www.sedar.com. 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
disclaims any obligation to update any forward-looking statements, whether as
a result of new information, future events or results or otherwise. 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. Thompson Creek undertakes no obligation to
update forward-looking statements if circumstances or management's estimates
or opinions should change. Accordingly, the reader is cautioned not to place
undue reliance on forward-looking statements.


    
    Consolidated Balance Sheets
    At September 30, 2007 and December 31, 2006
    (US dollars in thousands - Unaudited)

                                                    September 30 December 31
                                                            2007        2006
                                                    ------------ ------------
    Assets
    Current assets
      Cash and cash equivalents                     $    96,443  $    98,059
      Accounts receivable                                81,846       84,476
      Product inventory                                 121,554      131,269
      Material and supplies inventory                    27,411       25,498
      Prepaid expenses and other assets                   3,421        3,015
      Income and mining taxes recoverable                20,276            -
                                                    ------------ ------------
                                                        350,951      342,317
    Property, plant and equipment                       501,722      480,187
    Reclamation deposits                                 26,090       23,005
    Restricted cash                                       9,847        8,081
    Goodwill                                            154,081       46,322
                                                    ------------ ------------
                                                    $ 1,042,691  $   899,912
                                                    ------------ ------------
                                                    ------------ ------------
    Liabilities
    Current liabilities
      Accounts payable and accrued liabilities      $    40,578  $    38,794
      Acquisition cost payable                          100,000            -
      Current portion of long-term debt                  66,893       73,758
      Income and mining taxes payable                         -       29,407
      Future income and mining taxes                      3,009       16,769
                                                    ------------ ------------
                                                        210,480      158,728
    Long-term debt                                      187,192      324,048
    Asset retirement obligations                         28,266       25,992
    Sales contract liabilities                           18,844       11,421
    Severance and other liabilities                       9,848        8,008
    Future income and mining taxes                      148,599      147,664
                                                    ------------ ------------
                                                        603,229      675,861
                                                    ------------ ------------
    Shareholders' Equity
    Common shares                                       264,724      210,857
    Warrants                                             35,041       35,445
    Contributed surplus                                  22,427       14,953
    Retained earnings (deficit)                         100,903      (27,579)
    Accumulated other comprehensive income (loss)        16,367       (9,625)
                                                    ------------ ------------
                                                        439,462      224,051
                                                    ------------ ------------
                                                    $ 1,042,691  $   899,912
                                                    ------------ ------------
                                                    ------------ ------------


    Consolidated Statements of Income (Loss)
    Three and Nine Months Ended September 30, 2007 and 2006
    (US dollars and share amounts in thousands, except per share amounts -
     Unaudited)

                                Three months ended         Nine months ended
                                    September 30             September 30
                                 2007         2006         2007         2006

    Revenues
      Molybdenum sales    $   195,905  $         -  $   697,895  $         -
      Tolling and
       calcining                4,951            -       18,712            -
                          ------------ ------------ ------------ ------------
                              200,856            -      716,607            -
                          ------------ ------------ ------------ ------------
    Cost of sales
      Operating expenses      125,410            -      414,985            -
      Selling and marketing     2,378            -        7,466            -
      Depreciation and
       depletion               11,783            -       39,834            -
      Accretion                   379            -        1,209            -
                          ------------ ------------ ------------ ------------
                              139,950            -      463,494            -
                          ------------ ------------ ------------ ------------

    Income from mining
     operations                60,906            -      253,113            -

    Other expenses (income)
      General and
       administrative           2,579          487        9,361        1,469
      Exploration and
       development              1,071        2,375        5,301        6,963
      Interest and
       finance fees             7,843            -       35,381            -
      Stock-based
       compensation             3,115            -       11,543          496
      Interest income          (1,844)         (67)      (6,007)        (171)
      Other                     1,436            -        2,820           (6)
                          ------------ ------------ ------------ ------------
                               14,200        2,795       58,399        8,751
                          ------------ ------------ ------------ ------------

    Income (loss)
     before taxes              46,706       (2,795)     194,714       (8,751)

    Income and mining taxes
     (recoverable)
      Current                  14,675            -       86,501            -
      Future                    8,083            -      (20,269)        (620)
                          ------------ ------------ ------------ ------------
                               22,758            -       66,232         (620)
                          ------------ ------------ ------------ ------------

    Net income (loss)     $    23,948  $    (2,795) $   128,482  $    (8,131)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Net income (loss)
     per share
      Basic               $      0.21  $     (0.06) $      1.18  $     (0.17)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------
      Diluted             $      0.18  $     (0.06) $      1.05  $     (0.17)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------


    Consolidated Statements of Cash Flows
    Three and Nine Months Ended September 30, 2007 and 2006
    (US dollars in thousands - Unaudited)

                                Three months ended         Nine months ended
                                    September 30              September 30
                                 2007         2006         2007         2006

    Operating Activities
    Net income (loss)     $    23,948  $    (2,795) $   128,482  $    (8,131)
    Items not affecting
     cash
      Depreciation and
       depletion               11,783            -       39,834            -
      Accretion                   380            -        1,209            -
      Amortization of
       finance fees               729            -        7,146            -
      Gain on other
       derivative
       instruments             (1,227)           -       (2,615)           -
      Stock-based
       compensation             3,115            -       11,543          496
      Future income and
       mining taxes             8,083            -      (20,269)        (620)
      Gain on sale of
       marketable
       securities                   -            -            -           (6)
    Change in non cash
     working capital          (17,694)        (493)     (28,486)      (1,450)
                          ------------ ------------ ------------ ------------
    Cash generated by
     (used in) operating
     activities                29,117       (3,288)     136,844       (9,711)
                          ------------ ------------ ------------ ------------

    Investing Activities
    Property, plant and
     equipment                 (3,801)           -       (9,439)        (444)
    Deferred stripping costs   (9,896)           -      (25,516)           -
    Restricted cash               (81)           -       (1,503)        (235)
    Reclamation deposits       (1,890)           -       (2,626)           -
    Proceeds from
     disposition of
     marketable securities          -            -            -           26
                          ------------ ------------ ------------ ------------
    Cash used in investing
     activities               (15,668)           -      (39,084)        (653)
                          ------------ ------------ ------------ ------------

    Financing Activities
    Proceeds from issue of
     common shares              4,805        1,167       48,504        6,732
    Long-term debt
     repayments               (17,333)           -     (150,867)           -
                          ------------ ------------ ------------ ------------
    Cash provided by
     (used in) financing
     activities               (12,528)       1,167     (102,363)       6,732
                          ------------ ------------ ------------ ------------

    Effect of exchange
     rate changes on cash
     and cash equivalents       1,169           (8)       2,987          (56)
                          ------------ ------------ ------------ ------------

    Increase (decrease)
     in cash and cash
     equivalents                2,090       (2,129)      (1,616)      (3,688)

    Cash and cash
     equivalents,
     beginning of period       94,353        5,356       98,059        6,915
                          ------------ ------------ ------------ ------------
    Cash and cash
     equivalents, end of
     period               $    96,443  $     3,227  $    96,443  $     3,227
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------


    Consolidated Statements of Retained Earnings (Deficit)
    Three and Nine Months Ended September 30, 2007 and 2006
    (US dollars in thousands - Unaudited)

                                Three months ended         Nine months ended
                                    September 30              September 30
                                 2007         2006         2007         2006

    Retained earnings
     (deficit), beginning
     of period            $    76,955  $   (12,272) $   (27,579) $    (6,936)
    Net income (loss)          23,948       (2,795)     128,482       (8,131)
                          ------------ ------------ ------------ ------------
    Retained earnings
     (deficit), end of
     period               $   100,903  $   (15,067) $   100,903  $   (15,067)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------


    Consolidated Statements of Comprehensive Income (Loss)
    Three and Nine Months Ended September 30, 2007 and 2006
    (US dollars in thousands - Unaudited)

                                Three months ended         Nine months ended
                                    September 30              September 30
                                 2007         2006         2007         2006

    Net income (loss)     $    23,948  $    (2,795) $   128,482  $    (8,131)
    Other comprehensive
     income (loss)
      Foreign currency
       translation
       adjustment              12,322           (6)      25,992         (220)
                          ------------ ------------ ------------ ------------
    Comprehensive income
     (loss)               $    36,270  $    (2,801) $   154,474  $    (8,351)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------
    




For further information:

For further information: Ian McDonald, Executive Chairman, Thompson
Creek Metals Company Inc., Tel: (416) 860-1438, info@tcrk.com; Wayne
Cheveldayoff, Director of Investor Relations, Thompson Creek Metals Company
Inc., Tel: (416) 860-1438, Toll free: 1-800-827-0992, wcheveldayoff@tcrk.com;
Tina Cameron, Renmark Financial Communications Inc., Tel.: (514) 939-3989,
tcameron@renmarkfinancial.com

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Thompson Creek Metals Company Inc.

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