Thompson Creek Reports Third Quarter 2015 Cash Balance of $217 Million and Non-GAAP Unit Cash Cost on a By-Product Basis of Negative $0.16 per Pound of Copper Produced

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2015

2015

2015

2014

2014

Financial Information

Revenues

$

141.7

$

134.1

$

123.0

$

168.0

$

229.3

Operating income (loss)

$

10.5

$

12.1

$

5.2

$

(98.1)

$

63.8

Net (loss) income

$

(60.9)

$

0.3

$

(87.2)

$

(135.6)

$

(11.1)

Loss per share:

—basic

$

(0.28)

$

0.00

$

(0.41)

$

(0.63)

$

(0.05)

—diluted

$

(0.28)

$

0.00

$

(0.41)

$

(0.63)

$

(0.05)

Cash generated by (used in) operating activities

$

38.5

$

23.9

$

(5.3)

$

34.9

$

83.0

Adjusted Non-GAAP Measures ⁽¹⁾

Adjusted net (loss) income

$

(5.0)

$

(13.5)

$

(14.2)

$

(10.0)

$

38.3

Adjusted net (loss) income per share

—basic

$

(0.02)

$

(0.06)

$

(0.07)

$

(0.05)

$

0.18

—diluted

$

(0.02)

$

(0.06)

$

(0.07)

$

(0.05)

$

0.17

Operational Statistics

Copper

Payable production (000's lb) ⁽²⁾

16,363

20,159

15,405

18,024

16,267

Cash cost ($/payable lb produced) - By-Product ⁽¹⁾

$

(0.16)

$

0.48

$

1.12

$

1.16

$

0.77

Cash cost ($/payable lb produced) - Co-Product ⁽¹⁾

$

1.66

$

1.55

$

1.64

$

1.88

$

1.80

Copper sold (000's lb)

24,427

21,195

14,791

15,478

16,482

Average realized sales price ($/lb) ⁽¹⁾

$

2.09

$

2.63

$

2.47

$

2.75

$

3.02

Gold

Payable production (oz) ⁽²⁾

53,791

59,917

46,119

40,967

60,366

Cash cost ($/payable oz produced) - Co-Product ⁽¹⁾

$

527

$

434

$

498

$

506

$

477

Gold sold (oz)

75,451

57,920

36,750

38,910

57,974

Average realized sales price ($/oz) ⁽¹⁾

$

926

$

975

$

986

$

1,003

$

952

Molybdenum

Mined molybdenum production (000's lb)

—

—

—

4,328

6,560

Cash cost ($/lb produced)

$

—

$

—

$

—

$

10.34

$

6.77

Molybdenum sold (000's lb):

TC Mine and Endako Mine product

592

576

2,552

5,756

6,732

Purchased and processed product

2,342

1,679

1,733

2,376

2,181

2,934

2,255

4,285

8,132

8,913

Average realized sales price ($/lb)

$

7.86

$

9.23

$

10.00

$

10.79

$

13.94

⁽¹⁾

See "Non-GAAP Financial Measures" for the definition and reconciliation of these non-GAAP measures.

⁽²⁾

Payable production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and payable metal deductions, subject to metal content, levied by smelters. The current payable percentage applied is approximately 95.0% for copper and 96.5% for gold, which may be revised on a prospective basis after sufficient history of payable amounts is determined.

Three Months Ended

Nine Months Ended

September 30,
2015

September 30,
2014

September 30,
2015

September 30,
2014

(unaudited)

(unaudited)

Financial Information

Revenues

Copper sales

$

43.5

$

45.7

$

125.0

$

140.3

Gold sales

69.5

55.0

161.8

133.5

Molybdenum sales

23.0

124.3

86.7

353.5

Tolling, calcining and other

5.7

4.3

25.3

11.4

Total revenues

141.7

229.3

398.8

638.7

Costs and expenses

Cost of sales

Operating expenses

88.5

133.4

246.8

395.2

Depreciation, depletion and amortization

30.9

22.7

77.7

78.3

Total cost of sales

119.4

156.1

324.5

473.5

Total costs and expenses

131.2

165.5

371.0

504.5

Operating income 

10.5

63.8

27.8

134.2

Other expense

88.4

79.7

204.2

128.1

(Loss) income before income and mining taxes

(77.9)

(15.9)

(176.4)

6.1

Income and mining tax benefit

(17.0)

(4.8)

(28.6)

(5.3)

Net (loss) income

$

(60.9)

$

(11.1)

$

(147.8)

$

11.4

Net (loss) income per share

Basic

$

(0.28)

$

(0.05)

$

(0.68)

$

0.06

Diluted

$

(0.28)

$

(0.05)

$

(0.68)

$

0.05

Cash generated by (used in) operating activities

$

38.5

$

83.0

$

57.1

$

149.9

Adjusted Non-GAAP Measures: ⁽¹⁾

Adjusted net income (loss) ⁽¹⁾

$

(5.0)

$

38.3

$

(32.7)

$

64.6

Adjusted net income (loss) per share—basic ⁽¹⁾

$

(0.02)

$

0.18

$

(0.15)

$

0.35

Adjusted net income (loss) per share—diluted ⁽¹⁾

$

(0.02)

$

0.17

$

(0.15)

$

0.29

Three Months Ended

Nine Months Ended

September 30,
2015

September 30,
2014

September 30,
2015

September 30,
2014

(unaudited)

(unaudited)

Operational Statistics

Copper

Payable production (000's lb) ⁽¹⁾

16,363

16,267

51,927

46,545

Cash cost ($/payable lb produced) - By-Product ⁽²⁾

$

(0.16)

$

0.77

$

0.46

$

1.14

Cash cost ($/payable lb produced) - Co-Product ⁽²⁾

1.66

$

1.80

$

1.61

$

2.00

Copper sold (000's lb)

24,427

16,482

60,413

49,214

Average realized sales price ($/lb) ⁽²⁾

$

2.09

$

3.02

$

2.37

$

3.10

Gold

Payable production (oz)

53,791

60,366

159,827

136,639

Cash cost ($/payable oz produced) - Co-Product ⁽²⁾

$

527

$

477

$

484

$

530

Gold sold (oz)

75,451

57,974

170,121

133,831

Average realized sales price ($/oz) ⁽²⁾

$

926

$

952

$

956

$

1,002

Molybdenum

Mined production (000's lb) ⁽³⁾

—

6,560

—

21,928

Cash cost ($/lb produced)

$

—

$

6.77

$

—

$

6.23

Molybdenum sold (000's lb):

TC Mine and Endako Mine product

592

6,732

3,720

22,762

Purchased and processed product

2,342

2,181

5,754

5,685

2,934

8,913

9,474

28,447

Average realized sales price ($/lb)

$

7.86

$

13.94

$

9.15

$

12.43

⁽¹⁾

Payable production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and payable metal deductions, subject to metal content, levied by smelters. The current payable percentage applied is approximately 95.0% for copper and 96.5% for gold, which may be revised on a prospective basis after sufficient history of payable amounts is determined.

⁽²⁾

See "Non-GAAP Financial Measures" for the definition and reconciliation of these non-GAAP measures.

⁽³⁾

Mined production pounds reflected are molybdenum oxide and HPM from our share of production from the mines. (Excludes molybdenum processed from purchased product.)

Year Ended
December 31, 2015

Year Ended
December 31, 2015

(Estimated)
(Updated)

(Estimated)
(Previous)

Mount Milligan Mine Copper and Gold

Concentrate production (000's dry tonnes)

140 - 150

140 - 160

Copper payable production (000's lb)

70,000 - 80,000

70,000 - 90,000

Gold payable production (000's oz)

210 - 220

200 - 220

Unit cash cost - By-product ($/payable lb copper produced): ^{(1) (2)}

$0.55 - $0.75

$0.70 - $0.90

Molybdenum Business - Cash Inflow (Outflow) ($ in millions): ⁽²⁾⁽³⁾

Ongoing molybdenum operations - Langeloth

$6 - $10

$6 - $10

Suspended molybdenum operations:

TC Mine

Care and Maintenance

($8 - $9)

($7 - $10)

Phase 8 Stripping

($3 - $4)

($4 - $5)

Sale of Inventory

$32 - $34

$32 - $34

Endako Mine (75% share)

Temporary suspension, care and maintenance and severance costs

($16 - $18)

($17 - $19)

Sale of inventory

$10 - $11

$10 - $11

Total Cash Flow from Molybdenum Operations ⁽³⁾

$21 - $23

$20 - $21

Capital expenditures ($ in millions): ⁽²⁾⁽⁴⁾

Mount Milligan operations

$22 ± 10%

$22 ± 10%

Mount Milligan tailings dam

$24 ± 10%

$24 ± 10%

Mount Milligan secondary crusher engineering and site preparation

$15 ± 10%

$15 ± 10%

Mount Milligan vendor claims settlement ⁽⁵⁾

$13

$13

Langeloth and other

$7 ± 10%

$7 ± 10%

Total capital expenditures

$81 ± 10%

$81 ± 10%

⁽¹⁾

Copper by-product unit cash cost is calculated using gold by-product credits and a gold price of $781 per ounce for the first nine months of 2015 and an expected gold price of $753 per ounce for the last quarter of 2015, which takes into account the contractual price of $435 per ounce under the Gold Stream Arrangement.

⁽²⁾ 

Estimates for cash costs, molybdenum cash inflow (outflow) and cash capital expenditures assume an average foreign exchange rate of US$1.00 = C$1.26 for the first nine months of 2015 and US$1.00 = C$1.28 for the last quarter of 2015.

⁽³⁾ 

Cash inflow (outflow) excludes capital expenditures.

⁽⁴⁾

Includes 2015 cash capital expenditures, but excludes cash capital expenditures related to 2014 accruals paid in 2015.

⁽⁵⁾

In July 2015, Terrane Metals Corp., a wholly-owned subsidiary of the Company ("Terrane"), settled outstanding claims from two contractors that provided construction and installation services for the construction of Mount Milligan. The settlement amount was a one-time payment made in the third quarter of 2015.              

Three Months Ended

Nine Months Ended

September 30,
2015

September 30,
2014

September 30,
2015

September 30,
2014

Net (loss) income

$

(60.9)

$

(11.1)

$

(147.8)

$

11.4

Add (Deduct):

Loss on foreign exchange ⁽¹⁾

69.9

59.7

142.5

63.9

Tax expense benefit on foreign exchange loss

(14.0)

(10.3)

(27.4)

(10.7)

Non-GAAP adjusted net (loss) income

$

(5.0)

$

38.3

$

(32.7)

$

64.6

Net (loss) income per share

Basic

$

(0.28)

$

(0.05)

$

(0.68)

$

0.06

Diluted

$

(0.28)

$

(0.05)

$

(0.68)

$

0.05

Adjusted net (loss) income per share

Basic

$

(0.02)

$

0.18

$

(0.15)

$

0.35

Diluted

$

(0.02)

$

0.17

$

(0.15)

$

0.29

Weighted-average shares

Basic

221.2

213.9

217.9

186.8

Diluted

221.2

220.4

217.9

220.1

⁽¹⁾ 

Included foreign exchange losses of $1.1 million and $2.4 million presented in income and mining tax expense (benefit) on the Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2015, respectively. Included $0.6 million of foreign exchange gains for each of the three and nine months ended September 30, 2014 which was presented in income and mining tax expense (benefit) on the Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2014.  

Three Months Ended

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2015

2015

2015

2014

2014

Net (loss) income

$

(60.9)

$

0.3

$

(87.2)

$

(135.6)

$

(11.1)

Add (Deduct):

Asset impairments

—

—

—

104.8

—

Tax benefit of asset impairments ⁽¹⁾

—

—

—

(7.0)

—

Loss (gain) on foreign exchange ⁽²⁾

69.9

(17.2)

89.8

34.8

59.7

Tax (benefit) expense on foreign exchange loss (gain)

(14.0)

3.4

(16.8)

(7.0)

(10.3)

Non-GAAP adjusted net (loss) income

$

(5.0)

$

(13.5)

$

(14.2)

$

(10.0)

$

38.3

Net (loss) income per share

Basic

$

(0.28)

$

0.00

$

(0.41)

$

(0.63)

$

(0.05)

Diluted

$

(0.28)

$

0.00

$

(0.41)

$

(0.63)

$

(0.05)

Adjusted net (loss) income per share

Basic

$

(0.02)

$

(0.06)

$

(0.07)

$

(0.05)

$

0.18

Diluted

$

(0.02)

$

(0.06)

$

(0.07)

$

(0.05)

$

0.17

Weighted-average shares

Basic

221.2

218.0

214.4

214.1

213.9

Diluted

221.2

218.0

214.4

214.1

220.4

⁽¹⁾

The asset impairment for Endako Mine and TC Mine in 2014 did not have a net tax impact due to offsetting valuation allowance movement; therefore, the non-GAAP adjusted net income (loss) presentation excluded this tax effect.

⁽²⁾

Included a foreign exchange loss of $1.1 million; a foreign exchange gain of $0.3 million, a foreign exchange loss of $1.6 million, foreign exchange gains of $0.5, million and a $0.6 million foreign exchange loss, presented in income and mining tax expense (benefit) in the Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 2014, respectively.  

Three Months Ended

Nine Months Ended

(US$ in millions)

September
30, 2015

September
30, 2014

September
30, 2015

September
30, 2014

Direct mining costs⁽¹⁾

$

41.3

$

48.8

$

123.7

$

138.2

Truck and rail transportation and warehousing costs

3.9

3.8

12.1

10.0

Costs reflected in inventory and operations costs

$

45.2

$

52.6

$

135.8

$

148.2

Refining and treatment costs

7.9

4.4

19.0

12.9

Ocean freight and insurance costs

2.5

1.1

6.3

4.6

Direct costs reflected in revenue and selling and marketing costs

$

10.4

$

5.5

$

25.3

$

17.5

Non-GAAP cash costs

$

55.6

$

58.1

$

161.1

$

165.7

Reconciliation to amounts reported (US$ in millions)

Direct costs

$

(10.4)

$

(5.5)

$

(25.3)

$

(17.5)

Changes in inventory

14.1

(4.5)

8.9

14.0

Silver by-product credits ⁽²⁾

(1.4)

(1.1)

(3.8)

(3.4)

Non cash costs and other

0.2

0.4

0.6

1.1

Copper-Gold segment US GAAP operating expenses

$

58.1

$

47.4

$

141.5

$

159.9

Three Months Ended

(US$ in millions)

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2015

2015

2015

2014

2014

Direct mining costs ⁽¹⁾

$

41.3

$

45.0

$

37.4

$

45.2

$

48.8

Truck and rail transportation and warehousing costs

3.9

3.8

4.4

3.3

3.8

Costs reflected in inventory and operations costs

$

45.2

$

48.8

$

41.8

$

48.5

$

52.6

Refining and treatment costs

7.9

6.6

4.5

4.6

4.4

Ocean freight and insurance costs

2.5

1.8

2.0

1.5

1.1

Direct costs reflected in revenue and selling and marketing costs

$

10.4

$

8.4

$

6.5

$

6.1

$

5.5

Non-GAAP cash costs

$

55.6

$

57.2

$

48.3

$

54.6

$

58.1

Reconciliation to amounts reported (US$ in millions)

Direct costs

$

(10.4)

$

(8.4)

$

(6.5)

$

(6.1)

$

(5.5)

Changes in inventory

14.1

1.8

(7.0)

(6.2)

(4.5)

Silver by-product credits ⁽²⁾

(1.4)

(1.2)

(1.2)

(0.9)

(1.1)

Non cash costs and other

0.2

0.2

0.2

—

0.4

Copper-Gold segment US GAAP operating expenses

$

58.1

$

49.6

$

33.8

$

41.4

$

47.4

⁽¹⁾

Mining, milling and on-site general and administration costs. Mining includes all stripping costs but excludes costs  capitalized related to the construction of the tailings dam. Stripping costs that provide access to mineral reserves that will be produced in future periods are expensed as incurred under US GAAP.

⁽²⁾

Silver sales are reflected as a credit to operating costs.

Three Months Ended

Nine Months Ended

(US$ in millions, except pounds and per pound amounts)

September
30, 2015

September
30, 2014

September
30, 2015

September
30, 2014

Copper payable production (000's lbs)

16,363

16,267

51,927

46,545

Non-GAAP cash cost

$

55.6

$

58.1

$

161.1

$

165.7

Less by-product credits

Gold sales ⁽¹⁾

$

69.9

$

55.2

$

162.6

$

134.1

Gold sales related to deferred portion of Gold Stream Arrangement

(13.1)

(10.8)

(29.5)

(24.9)

Net gold by-product credits

$

56.8

$

44.4

$

133.1

$

109.2

Silver by-product credits ⁽²⁾

1.4

1.1

3.9

3.4

Total by-product credits

$

58.2

$

45.5

$

137.0

$

112.6

Non-GAAP cash cost net of by-product credits

$

(2.6)

$

12.6

$

24.1

$

53.1

Non-GAAP cash cost per pound, on a by-product basis

$

(0.16)

$

0.77

$

0.46

$

1.14

Three Months Ended

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(US$ in millions, except pounds and per pound amounts)

2015

2015

2015

2014

2014

Copper payable production (000's lbs)

16,363

20,159

15,405

18,024

16,267

Non-GAAP cash cost

$

55.6

$

57.2

$

48.3

$

54.6

$

58.1

Less by-product credits

Gold sales ⁽¹⁾

$

69.9

$

56.5

$

36.2

$

39.0

$

55.2

Gold sales related to deferred portion of Gold Stream Arrangement

(13.1)

(10.0)

(6.4)

(6.3)

(10.8)

Net gold by-product credits

$

56.8

$

46.5

$

29.8

$

32.7

$

44.4

Silver by-product credits ⁽²⁾

1.4

1.3

1.2

0.9

1.1

Total by-product credits

$

58.2

$

47.8

$

31.0

$

33.6

$

45.5

Non-GAAP cash cost net of by-product credits

$

(2.6)

$

9.4

$

17.3

$

21.0

$

12.6

Non-GAAP cash cost per pound, on a by-product basis

$

(0.16)

$

0.48

$

1.12

$

1.16

$

0.77

⁽¹⁾

Excluded refining and treatment charges.

⁽²⁾

Silver sales are reflected as a credit to operating costs.

Three Months Ended

Nine Months Ended

(US$ in millions, except pounds, ounces and per unit amounts)

September
30, 2015

September
30, 2014

September
30, 2015

September
30, 2014

Copper payable production (000's lbs)

16,363

16,267

51,927

46,545

Gold payable production in Cu eq. (000's lbs) ⁽¹⁾

17,199

15,976

48,598

36,541

Payable production (000's lbs)

33,562

32,243

100,525

83,086

Non-GAAP cash cost allocated to Copper

$

27.2

$

29.3

$

83.2

$

92.8

Non-GAAP cash cost per pound, on a co-product basis

$

1.66

$

1.80

$

1.61

$

2.00

Non-GAAP cash cost allocated to Gold

$

28.4

$

28.8

$

77.9

$

72.9

Gold payable production (ounces)

53,791

60,366

159,827

136,639

Non-GAAP cash cost per ounce, on a co-product basis

$

527

$

477

$

484

$

530

Three Months Ended

(US$ in millions, except pounds, ounces and per unit amounts)

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

2015

2015

2015

2014

2014

Copper payable production (000's lbs)

16,363

20,159

15,405

18,024

16,267

Gold payable production in Cu eq. (000's lbs) ⁽¹⁾

17,199

17,317

14,082

10,954

15,976

Payable production (000's lbs)

33,562

37,476

29,487

28,978

32,243

Non-GAAP cash cost allocated to Copper

$

27.2

$

30.8

$

25.2

$

34.0

$

29.3

Non-GAAP cash cost per pound, on a co-product basis

$

1.66

$

1.55

$

1.64

$

1.88

$

1.80

Non-GAAP cash cost allocated to Gold

$

28.4

$

26.4

$

23.1

$

20.6

$

28.8

Gold payable production (ounces)

53,791

59,917

46,119

40,967

60,366

Non-GAAP cash cost per ounce, on a co-product basis

$

527

$

434

$

498

$

506

$

477

⁽¹⁾

For the nine months ended September 30, 2015 gold has been converted from payable ounces to thousands of copper equivalent pounds by using the gold production for the periods presented, using a gold price of $781 and a copper price of $2.57. For the nine months ended September 30, 2014 gold has been converted from payable ounces to thousands of copper equivalent pounds by using the gold production for the periods presented, using a gold price of $842 and a copper price of $3.15. Gold has been converted from payable ounces to thousands of copper equivalent pounds by using the gold production for the periods presented, using a gold price of $764, $795, $806, $829 and $840 per ounce for the three months ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively, (adjusted for the Royal Gold price of $435 per ounce) and a copper price of $2.39, $2.75, $2.64, $3.10 and $3.17 per pound for the three months ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, respectively.

Three Months Ended
September 30,

Nine Months Ended
September 30,

(US$ in millions, except pounds, ounces and per unit amounts)

2015

2014

2015

2014

Average realized sales price for Copper

Copper sales reconciliation ($)

Copper sales, excluding adjustments

$

59.6

$

52.6

$

156.3

$

155.2

Final pricing adjustments

(7.1)

1.3

(12.8)

(0.7)

Mark-to-market adjustments

(1.5)

(4.0)

(0.3)

(1.9)

Copper sales, net of adjustments

51.0

49.9

143.2

152.6

Less Refining and treatment costs

7.5

4.2

18.2

12.3

Copper sales

$

43.5

$

45.7

$

125.0

$

140.3

Pounds of Copper sold (000's lb)

24,427

16,482

60,413

49,214

Average realized sales price for Copper on a per pound basis

Copper sales excluding adjustments

$

2.44

$

3.19

$

2.59

$

3.15

Final pricing adjustments

(0.29)

0.08

$

(0.21)

(0.01)

Mark-to-market adjustments

(0.06)

(0.25)

$

(0.01)

(0.04)

Average realized Copper sales price per pound sold

$

2.09

$

3.02

$

2.37

$

3.10

Average realized sales price for Gold

Gold sales reconciliation ($)

Gold sales related to cash portion of Gold Stream Arrangement

$

17.0

$

13.0

$

38.4

$

30.2

Gold sales related to deferred portion of Gold Stream Arrangement

13.1

10.8

29.5

24.9

Gold sales under Gold Stream Arrangement

30.1

23.8

67.9

55.1

TCM share of gold sales to MTM Customers

40.2

35.6

95.4

82.8

Final pricing adjustments

(0.4)

(0.2)

(0.8)

(0.5)

Mark-to-market adjustments

0.1

(4.0)

0.1

(3.3)

Gold sales TCM Share

39.9

31.4

94.7

79.0

Gold sales, net of adjustments

70.0

55.2

162.6

134.1

Less Refining and treatment costs

0.5

0.2

0.8

0.6

Gold sales

69.5

55.0

161.8

133.5

Ounces of gold sold to Royal Gold

39,061

29,965

88,285

69,329

TCM share of ounces of gold sold to MTM customers

36,390

28,009

81,836

64,502

Total ounces of Gold sold

75,451

57,974

170,121

133,831

Average realized sales price for Gold on a per ounce basis

Gold sales related to cash portion of Gold Stream Arrangement

$

435

$

435

$

435

$

435

Gold sales related to deferred portion of Gold Stream Arrangement

334

359

334

$

359

Average realized sales price per ounce sold to Royal Gold

$

769

$

794

$

769

$

794

TCM share of gold sales to MTM Customers

$

1,105

$

1,271

1,166

$

1,284

Final pricing adjustments

(11)

(7)

(10)

(8)

Mark-to-market adjustments

3

(143)

1

(51)

Average realized sales price per ounce sold for TCM share

$

1,097

$

1,121

$

1,157

$

1,225

Average realized sales price per ounce sold

$

926

$

952

$

956

$

1,002

Three Months Ended

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(US$ in millions, except pounds, ounces and per unit amounts)

2015

2015

2015

2014

2014

Average realized sales price for Copper

Copper sales reconciliation ($)

Copper sales, excluding adjustments

$

59.6

$

58.4

$

38.3

$

46.6

$

52.6

Final pricing adjustments

(7.1)

1.6

(7.3)

(2.5)

1.3

Mark-to-market adjustments

(1.5)

(4.3)

5.5

(1.5)

(4.0)

Copper sales, net of adjustments

51.0

55.7

36.5

42.6

49.9

Less Refining and treatment costs

7.5

6.4

4.3

4.4

4.2

Copper sales

$

43.5

$

49.3

$

32.2

$

38.2

$

45.7

Pounds of Copper sold (000's lb)

24,427

21,195

14,791

15,478

16,482

Average realized sales price for Copper on a per unit basis

Copper sales excluding adjustments

$

2.44

$

2.76

$

2.59

$

3.01

$

3.19

Final pricing adjustments

(0.29)

0.08

(0.49)

(0.16)

0.08

Mark-to-market adjustments

(0.06)

(0.21)

0.37

(0.10)

(0.25)

Average realized Copper sales price per pound sold

$

2.09

$

2.63

$