TSX: TCM, TCM.WT
TORONTO, Feb. 18 /CNW/ - Thompson Creek Metals Company Inc. (the
"Company"), one of the world's largest publicly traded, pure molybdenum
producers, today provided additional information concerning its plans to
reduce molybdenum production and conserve cash in 2009.
"Thompson Creek has taken the necessary steps to adjust production and
reduce costs and capital spending in response to the lower demand for
molybdenum and generally unfavorable market conditions," said Kevin Loughrey,
Chairman and Chief Executive Officer.
"The changes we have adopted, along with the Company's substantial cash
balances and low debt, put Thompson Creek in a better position to continue
operating at both mines during the worldwide economic downturn. We intend to
remain flexible and ready to adjust our production higher or lower if there
are substantial changes in market conditions in the future."
The Company announced on January 27, 2009 that its molybdenum production
is expected to be 20 to 24 million pounds in 2009, down from previous guidance
of 31.5 to 34 million pounds. The Company now has completed a review of mine
operation plans and currently expects this year's Thompson Creek Mine
production to be 15 to 17 million pounds and its 75% share of Endako Mine
production to be 5 to 7 million pounds.
The planned production adjustments include a reduction in mill operation
to 70% of capacity (a 10 days on, four days off schedule) at the Thompson
Creek Mine beginning mid-April and a temporary shutdown for about a month this
summer at both the Thompson Creek and Endako mines.
The Company's sales of molybdenum produced at its own mines are expected
to be 20 to 24 million pounds in 2009.
For 2009, Thompson Creek currently expects sustaining capital
expenditures at both mines and the Langeloth Metallurgical Facility will total
$38 million. In addition, the Company's share of expansion capital
expenditures at the Endako Mine is now expected to be $22 million in 2009. As
previously announced, the Endako expansion project has been suspended until
the molybdenum market improves.
The Company's cash balances were $258 million and outstanding debt was
$17.3 million as at December 31, 2008. Cash balances as of February 16, 2009
were approximately $271 million.
2008 Production, Sales and Capital Expenditures
Thompson Creek's molybdenum production totaled 7.8 million pounds in the
fourth quarter of 2008 and 26.0 million pounds during the entire year.
Production at the Thompson Creek Mine was 4.8 million pounds in the fourth
quarter and 16.7 million pounds for the year, while the Company's 75% share of
production at the Endako Mine was 3.0 million pounds in the fourth quarter and
9.3 million pounds for all of 2008.
Total sales of molybdenum produced at the Company's own mines were 6.6
million pounds in the fourth quarter of 2008 and 22.4 million pounds during
the full year.
Total capital expenditures in 2008 were $114 million, comprised of
sustaining capital expenditures of $71 million and Endako expansion capital
expenditures of $43 million.
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 800
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.
For further information:
For further information: Wayne Cheveldayoff, Director of Investor
Relations, Thompson Creek Metals Company Inc., Tel.: (416) 860-1438,
firstname.lastname@example.org; Dan Symons, Renmark Financial Communications Inc.,
Tel.: (514) 939-3989, email@example.com