Thompson Creek reports net income of US$56.8 million or 51 cents per share in Q2 2007



    Shares outstanding: 112,961,000
    TSX: TCM, TCM.WT
    Frankfurt: A6R

    TORONTO, Aug. 10 /CNW/ - Highlights (all in U.S. dollars):

    
    -   Revenues were $247.8 million in the second quarter and $515.8 million
        in the first half of 2007.
    -   Net income was $56.8 million or $0.51 per basic and $0.45 per diluted
        share in the second quarter and $104.5 million or $0.97 per basic and
        $0.89 per diluted share in the first half.
    -   Debt was reduced by $50.4 million during the second quarter and by a
        total of $133.5 million since the beginning of 2007. As at June 30,
        2007, the principal outstanding on the First Lien Credit Facility was
        $269.5 million and cash balances totaled $94.4 million.
    -   Average realized prices on molybdenum sales rose to $29.59 per pound
        in the second quarter from $25.57 in the first quarter.
    -   At the Endako Mine, updated estimates of reserves announced in July
        significantly extend the mine life to 27 years at current production
        rates.
    

    Note: Conference call and webcast for analysts and investors scheduled
for Monday, August 13, 2007 at 10:00 a.m. Eastern

    Thompson Creek Metals Company Inc., one of the world's largest publicly
traded, pure molybdenum producers, today announced financial results for the
three and six months ended June 30, 2007 prepared in accordance with Canadian
generally accepted accounting principles. All dollar amounts are in U.S.
dollars unless otherwise indicated.
    "We are pleased with the performance of all operations during the second
quarter," said Kevin Loughrey, President and Chief Executive Officer. "We
continue to execute on the business plan we set out after the acquisition last
October and we remain confident of continued strong molybdenum prices."
    Thompson Creek's revenues totaled $247.8 million in the second quarter of
2007 and $515.8 million in the first half of the year. Second-quarter revenues
were positively affected by a 15.7% rise in the average price realized on the
Company's molybdenum sales between the first and second quarters of 2007. The
average realized price was $29.59 per pound in the second quarter versus
$25.57 per pound in the first quarter. No revenues were earned by Thompson
Creek in the first half of 2006 as it was in the development stage.
    After the deduction of operating, selling, marketing, depreciation,
depletion and accretion costs, the Company generated substantial income from
mining operations totaling $192.2 million in the first half of the year.
Income from mining operations increased to $104.1 million in the second
quarter from $88.1 million in the first quarter of 2007.
    Net income for the second quarter of 2007 was $56.8 million or $0.51 per
basic and $0.45 per diluted share, compared with a net loss of $2.9 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 111,224,000
(basic) and 126,371,000 (diluted) in the second quarter of 2007 and 48,418,000
(basic and diluted) a year earlier. At August 7, 2007 there were 112,961,000
shares outstanding.
    Net income in the first half of 2007 was $104.5 million or $0.97 per
basic and $0.89 per diluted share, compared with a net loss of $5.3 million or
$0.11 per basic and diluted share a year earlier. The per-share figures are
based on a weighted-average number of shares outstanding of 107,258,000
(basic) and 117,609,000 (diluted) in the first half of 2007 and 46,628,000
(basic and diluted) a year earlier. Net income in the first half 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 in October 2006.
    For the first half of 2007, cash flow from operating activities was
$105.4 million, compared with cash used of $6.4 million in the same period in
2006.
    A substantial increase in product inventory and unusually high tax
payments were the main reasons for cash from operating activities being
significantly reduced to $0.4 million in the second quarter from
$105.1 million the first quarter of 2007. In particular, there was a
significant impact on cash from operating activities in the second quarter
from a $53.1 million increase in product inventory. This increase was
primarily the result of purchasing third-party concentrate at the higher
prevailing market prices and an increased volume of third-party purchased
inventory on hand at June 30, 2007. Another significant impact on cash from
operating activities was the $89.7 million payment of income and mining tax
installments in the second quarter of 2007. These amounts were much higher
than usual for a quarter due to the timing of annual and quarterly
installments and the prepayment of certain taxes to reduce interest costs.
Quarterly installments for U.S. income and mining taxes for the first and
second quarter of each year are due and payable during the second quarter of
each year. Tax installments related to the first quarter were $18.3 million.
The Company additionally paid $21.9 million as a result of prior under-funded
Canadian tax installments and prepaid $9 million in Canadian tax installments
to eliminate the non-deductible interest accrued on the under-funded tax
installments.
    During the second quarter of 2007, the Company made payments of
$49.8 million to reduce its First Lien Credit Facility to $269.5 million on
June 30, 2007. This followed payments in the first quarter to reduce the First
Lien Credit Facility by $20.7 million to $319.3 million on March 31, 2007 and
to fully discharge the $61.9 million Second Lien Credit Facility.
    Since the acquisition of mining and metallurgical operations in October
2006, the Company has used $194.0 million of cash to reduce debt by
$133.5 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 to the former
owner of up to $125 million depending on the average price for molybdenum. If
the average price for molybdenum continues to exceed $25 per pound for the
remainder of 2007, the Company will be required to pay the former owner
$100 million of this contingent payment in January 2008. 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 $94.4 million as at June 30, 2007 versus
$114.5 million on March 31, 2007 and $98.1 million as at December 31, 2006.
    The Company's mines produced 4.5 million pounds of molybdenum at an
average production cost of $7.09 per pound in the second quarter of 2007. The
Thompson Creek Mine produced 2.4 million pounds at an average cost of $6.74
per pound. The Company's 75% share of the Endako Mine's production was
2.1 million pounds at an average cost of $7.48 per pound.
    In the first half of 2007, the Company's mines produced 9.9 million
pounds of molybdenum at an average production cost of $6.27 per pound. The
Thompson Creek Mine produced 6.2 million pounds at an average production cost
of $5.36 per pound and the Company's 75% share of the Endako Mine's production
was 3.7 million pounds at an average cost of $7.80 per pound.
    The cited amounts for the second quarter and first half 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
stripping costs.

    Outlook

    Molybdenum production from the Thompson Creek Mine in the second quarter
was lower than historic levels and lower than planned for several reasons. The
mine is in a development stage, in between two phases of the mine plan. Until
the development of the next phase (Phase 6) is complete, the mine is producing
primarily from lower-grade stockpiled material. This material is difficult to
mill and has a lower grade than the Phase 6 ore. In addition, the development
work for Phase 6 has, earlier than expected, prevented access to exposed ore
at the bottom of the pit. It is anticipated that, as the year progresses, the
operations at the mine will continue to have improving access to the
higher-grade Phase 6 ore consistent with the existing mine plan. The Company
expects to be in full production from the new phase late in the fourth
quarter. However, for the last half of 2007, molybdenum production volumes
will be lower and unit costs will be higher than past periods.
    The impact from lower production on the Company's third-quarter revenues
may be offset in part by the higher molybdenum prices being enjoyed recently.
The quoted price for molybdenum oxide rose to approximately $33 per pound on
average in June from an approximate average of $28 per pound in March and $25
per pound in January and February. Because of the normal one-month pricing lag
on the Company's sales, the Company did not begin to receive the highest
prices evident in June until its July deliveries. The price increase that
began in March has been generally sustained with the market price for
molybdenum oxide remaining above $30 per pound to date.
    The Company previously announced that it was expecting to produce
21 million pounds of molybdenum in 2007 from its existing Thompson Creek and
Endako mines and, as higher grade ore is accessed at the mines, was planning
to increase production from these mines to 27 million pounds in 2008 and
29 million pounds in 2009. As a result of lower-than-expected ore grades and
the development of a new phase of the Thompson Creek Mine, the Company now
expects to produce slightly less than the previously announced forecast for
2007. The forecasts for 2008 and 2009 remain unchanged.
    On July 10, 2007, the Company announced an updated estimate of ore
reserves and mine life for its Endako Mine. The updated reserves and mine life
were calculated by Wardrop Engineering Inc. to the specifications of the
Canadian Securities Administrators National Instrument 43-101 and in
accordance with the Canadian Institute of Mining Standards. Wardrop estimates
that the Endako Mine's reserves are 276 million tonnes of ore with an average
grade equivalent to 0.051% molybdenum (Mo) containing 310 million pounds of
molybdenum (75% of which are to Thompson Creeks's account). These reserves
consist of proven reserves of 112 million tonnes at an average grade
equivalent to 0.053% Mo and probable reserves of 164 million tonnes at an
average grade equivalent to 0.049% molybdenum. The estimates are based on an
assumed molybdenum price of $10 per pound and updated costs.
    At the current milling rate of 10.2 million tonnes of ore per year,
Wardrop estimates Endako's mine life is 27 years, not including stockpile
material. The previous reserve estimates and mine plan extending to 2013 for
Endako assumed a long-term molybdenum price of $3.50 per pound and included
2.5 years of milling low-grade stockpile material. The Wardrop estimates are
based on an optimized model for the Endako deposit combining the existing
Endako, East Denak and West Denak pits into one "super pit".
    The new reserves and mine life estimates at the Endako Mine were
estimated by Anoush Ebrahimi, P. Eng., of Wardrop Engineering Inc., a
qualified person as defined in National Instrument 43-101.
    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. The
study is expected to be completed by the end of 2007.
    The Company is also developing a new mine plan for its Thompson Creek
Mine based on a re-evaluation of mineral reserves assuming a long-term
molybdenum price of $10 per pound and updated costs. The previous mine plan
had assumed a long-term price of $5 per pound. The new plan is expected to
significantly increase reserves and mine life when 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.
    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 six months ended June 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 second-quarter 2007 financial results on Monday August 13, 2007 at
10 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 416-644-3419 or 1-800-731-6941
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 21243042 followed by the number sign) from 12:00 p.m.
on August 13 to 11:59 p.m. on August 20. 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 June 30, 2007 and December 31, 2006
    (US dollars in thousands - Unaudited)

                                                      June 30    December 31
                                                         2007           2006

    Assets
    Current assets
      Cash and cash equivalents                     $  94,353      $  98,059
      Accounts receivable                             102,615         84,476
      Product inventory                               123,936        131,269
      Material and supplies inventory                  26,329         25,498
      Prepaid expenses and other assets                 3,250          3,015
      Income and mining taxes recoverable              11,960              -
      Future income and mining taxes                    1,029              -
                                                   -----------    -----------
                                                      363,472        342,317
    Property, plant and equipment                     487,372        480,187
    Reclamation deposits                               23,918         23,005
    Restricted cash                                     9,766          8,081
    Goodwill                                          102,725         46,322
                                                   -----------    -----------
                                                    $ 987,253      $ 899,912
                                                   -----------    -----------
                                                   -----------    -----------
    Liabilities
    Current liabilities
      Accounts payable and accrued liabilities      $  69,737      $  38,794
      Acquisition cost payable                         50,000              -
      Income and mining taxes payable                       -         29,407
      Current portion of long-term debt                66,668         73,758
      Future income and mining taxes                    2,534         16,769
                                                   -----------    -----------
                                                      188,939        158,728
    Long-term debt                                    204,021        324,048
    Asset retirement obligations                       27,479         25,992
    Sales contract liability                           24,933         11,421
    Severance and other liabilities                    10,048          8,008
    Future income and mining taxes                    138,339        147,664
                                                   -----------    -----------
                                                      593,759        675,861
                                                   -----------    -----------
    Shareholders' Equity
    Common shares                                     257,726        210,857
    Warrants                                           35,042         35,445
    Contributed surplus                                19,726         14,953
    Retained earnings (deficit)                        76,955        (27,579)
    Accumulated other comprehensive income (loss)       4,045         (9,625)
                                                   -----------    -----------
                                                      393,494        224,051
                                                   -----------    -----------
                                                    $ 987,253      $ 899,912
                                                   -----------    -----------
                                                   -----------    -----------



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

                                   Three months ended     Six months ended
                                         June 30               June 30
                                     2007       2006       2007       2006

    Revenues
      Molybdenum sales            $ 241,255  $       -  $ 501,990  $       -
      Tolling and calcining           6,529          -     13,761          -
                                  ---------- ---------- ---------- ----------
                                    247,784          -    515,751          -
                                  ---------- ---------- ---------- ----------
    Cost of sales
      Operating expenses            127,807          -    289,574          -
      Selling and marketing           3,488          -      5,088          -
      Depreciation and depletion     11,970          -     28,052          -
      Accretion                         393          -        830          -
                                  ---------- ---------- ---------- ----------
                                    143,658          -    323,544          -
                                  ---------- ---------- ---------- ----------

    Income from mining operations   104,126          -    192,207          -

    Other expenses (income)
      General and administrative      3,672        578      6,780        982
      Exploration and development     2,364      2,336      4,231      4,588
      Interest and finance fees       9,670          -     27,538          -
      Unrealized gain on other
       derivative instruments          (590)         -     (1,388)         -
      Stock-based compensation        5,810          -      8,428        496
      Interest income                (2,263)       (59)    (4,163)      (104)
      Other                           2,479          -      2,773         (6)
                                  ---------- ---------- ---------- ----------
                                     21,142      2,855     44,199      5,956
                                  ---------- ---------- ---------- ----------

    Income (loss) before taxes       82,984     (2,855)   148,008     (5,956)

    Income and mining taxes
     (recoverable)
      Current                        33,977          -     71,826          -
      Future                         (7,792)         -    (28,352)      (620)
                                  ---------- ---------- ---------- ----------
                                     26,185          -     43,474       (620)
                                  ---------- ---------- ---------- ----------

    Net income (loss)             $  56,799  $  (2,855) $ 104,534  $  (5,336)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Net income (loss) per share
      Basic                       $    0.51  $   (0.06) $    0.97  $  (0.11)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
      Diluted                     $    0.45  $   (0.06) $    0.89  $  (0.11)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------



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

                                   Three months ended     Six months ended
                                         June 30               June 30
                                     2007       2006       2007       2006

    Operating Activities
    Net income (loss)             $  56,799  $  (2,855) $ 104,534  $  (5,336)
    Items not affecting cash
      Depreciation and depletion     11,970          -     28,052          -
      Accretion                         393          -        830          -
      Amortization of finance fees    1,633          -      6,417          -
      Unrealized gain on other
       derivative instruments          (590)         -     (1,388)         -
      Stock-based compensation        5,810          -      8,428        496
      Future income and mining
       taxes                         (7,792)         -    (28,352)      (620)
      Gain on sale of marketable
       securities                         -          -          -         (6)
    Change in non cash working
     capital                        (67,864)       105    (13,103)      (957)
                                  ---------- ---------- ---------- ----------
        Cash generated by (used
         in) operating activities       359     (2,750)   105,418     (6,423)
                                  ---------- ---------- ---------- ----------

    Investing Activities
    Property, plant and equipment    (3,036)      (444)    (5,638)      (444)
    Deferred stripping costs         (8,767)         -    (15,620)         -
    Restricted cash                    (960)      (191)    (1,397)      (235)
    Reclamation deposits               (242)         -       (764)         -
    Proceeds from disposition of
     marketable securities                -          -          -         26
                                  ---------- ---------- ---------- ----------
        Cash used in investing
         activities                 (13,005)      (635)   (23,419)      (653)
                                  ---------- ---------- ---------- ----------

    Financing Activities
    Proceeds from issue of
     common shares                   38,541      3,430     43,712      5,565
    Long-term debt repayments       (50,353)         -   (133,534)         -
                                  ---------- ---------- ---------- ----------
        Cash provided by (used
         in) financing activities   (11,812)     3,430    (89,822)     5,565
                                  ---------- ---------- ---------- ----------

    Effect of exchange rate
     changes on cash and cash
     equivalents                      4,299         45      4,117        (48)
                                  ---------- ---------- ---------- ----------

    Increase (decrease) in cash
     and cash equivalents           (20,159)        90     (3,706)    (1,559)

    Cash and cash equivalents,
     beginning of period            114,512      5,266     98,059      6,915
                                  ---------- ---------- ---------- ----------
    Cash and cash equivalents,
     end of period                $  94,353  $   5,356  $  94,353  $   5,356
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------



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

                                   Three months ended     Six months ended
                                         June 30               June 30
                                     2007       2006       2007       2006

    Retained earnings (deficit),
     beginning of period          $  20,156  $  (9,417) $ (27,579) $  (6,936)
    Net income (loss)                56,799     (2,855)   104,534     (5,336)
                                  ---------- ---------- ---------- ----------
    Retained earnings (deficit),
     end of period                $  76,955  $ (12,272) $  76,955  $ (12,272)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------



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

                                   Three months ended     Six months ended
                                         June 30               June 30
                                     2007       2006       2007       2006

    Net income (loss)             $  56,799  $  (2,855) $ 104,534  $  (5,336)
    Other comprehensive income
     (loss)
      Foreign currency
       translation adjustment        14,157       (114)    13,670       (214)
                                  ---------- ---------- ---------- ----------
    Comprehensive income (loss)   $  70,956  $  (2,969) $ 118,204  $  (5,550)
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    





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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