THOMPSON CREEK ANNOUNCES FIRST QUARTER 2011 RECORD PRODUCTION OF 10.3 MILLION POUNDS OF MOLYBDENUM AND APPROVES MT. MILLIGAN CAPITAL EXPENDITURE BUDGET
DENVER, May 6 /CNW/ --
NYSE: TC
TSX: TCM, TCM.WT
TSX-V: TRX.WT
DENVER, May 6 /CNW/ - Thompson Creek Metals Company Inc. ('Company' or
'Thompson Creek'), a growing, diversified North American mining
company, today announced financial results for the three months ended
March 31, 2011, prepared in accordance with United States generally
accepted accounting principles ('US GAAP'). All dollar amounts are in
United States ('US') dollars unless otherwise indicated.
Financial Highlights:
Revenue for the quarter ended March 31, 2011 was $206.7 million, up 62% from
$127.8 million for the first quarter of 2010.
Net Income for the quarter ended March 31, 2011 was $128.9 million, or $0.78 per
basic and $0.73 per diluted share, which included a non-cash unrealized
gain on common stock purchase warrants of $66.0 million, or $0.40 per
basic and $0.37 per diluted share. Net income for the quarter ended
March 31, 2010 was $1.1 million, or $0.01 per basic and diluted share,
which included a non-cash unrealized loss on common stock purchase
warrants of $24.5 million, or $0.17 per basic and $0.16 per diluted
share.
Non-GAAP Adjusted Net Income for the quarter ended March 31, 2011 (excluding the non-cash unrealized
gain on the warrants) was $62.9 million, or $0.38 per basic and $0.36
per diluted share. Non-GAAP adjusted net income for the quarter ended
March 31, 2010 (excluding the non-cash unrealized loss on the warrants)
was $25.6 million, or $0.18 per basic and $0.17 per diluted share.
The Company's net income continues to be affected by the previously
disclosed requirement under US GAAP to account for the Company's
outstanding common stock warrants as a derivative liability, with
changes in the fair market value recorded in net income.
Molybdenum Production for the quarter ended March 31, 2011 was a new quarterly record of 10.3
million pounds, up 25% from 8.3 million pounds in the first quarter of
2010.
Non-GAAP Average Cash Cost Per Pound Produced for the quarter ended March 31, 2011 was $5.37 per pound, compared to
$5.36 per pound for the first quarter of 2010.
Cash Flow From Operations for the quarter ended March 31, 2011 was $76.6 million, up 200% from
$25.6 million for the first quarter of 2010.
Capital Costs incurred for the quarter ended March 31, 2011 were $121.4 million, comprised of
$10.1 million of capital costs for the mines, the Langeloth Facility
and corporate, and $51.9 million and $59.4 million of capital costs for
the mill expansion project at the Endako Mine (75% share) and the
development of Mt. Milligan, respectively. The capital costs for the
first quarter of 2011 include amounts accrued of $28.5 million at March
31, 2011; therefore, capital expenditures for the first quarter of 2011
were $92.9 million.
Total Cash and Cash Equivalents at March 31, 2011 were $303.0 million, compared to $316.0 million as of
December 31, 2010. Total debt as of March 31, 2011 was $20.5 million,
compared to $22.0 million as of December 31, 2010.
'Thompson Creek achieved excellent financial performance in the first
quarter of 2011, mainly as a result of increased production, sales
volumes and molybdenum prices,' said Kevin Loughrey, Chairman and Chief
Executive Officer of Thompson Creek. 'The Company produced a record
10.3 million pounds of molybdenum, and sold a record 10.1 million
pounds of molybdenum from its mines for an average realized molybdenum
sales price for the quarter of $17.39, up 20% from $14.50 in the first
quarter of 2010. We anticipate that over the remainder of 2011, the
price for molybdenum oxide will continue to be volatile, but will
gradually increase with the expected improvement in worldwide
molybdenum bearing steel production,' added Mr. Loughrey.
The Company also announced that it has approved the increased capital
expenditure budget for the Mt. Milligan project in British Columbia
from C$915 million to C$1.265 billion. The C$350 million increase is
attributable to design improvements, increases in labor costs, the cost
of steel, concrete and other materials, and changes in the foreign
exchange rate.
'Mt. Milligan is an important building block for our Company, both in
terms of growth and diversification,' said Kevin Loughrey. 'We believe
that, notwithstanding the capital increase, the economics for the
project are still extremely attractive, and our liquidity and capital
resources are sufficient to complete the construction of the Mt.
Milligan mine. We expect to commence production in late 2013 and
produce approximately 81 million pounds of copper and 194,000 ounces of
gold annually,' added Mr. Loughrey.
At March 31, 2011, Thompson Creek had working capital of $392.7 million,
including $303.0 million of cash, cash equivalents and short-term
investments, $106.8 million of receivables, and $20.5 million of debt
related to equipment financings. The Company intends to fund the
remaining mill expansion costs at the Endako Mine and the Mt. Milligan
development costs from a combination of cash on hand, cash flow from
operations, funds from various financing facilities, the remaining
proceeds from the gold stream transaction with Royal Gold and expected
funds from the exercise of warrants that expire in October 2011.
Thompson Creek may consider additional debt financings. The timing of
any financing transaction will depend on market conditions. The Company
does not currently intend to fund Mt. Milligan development costs
through the issuance of equity or equity-linked securities.
Selected Consolidated Financial and Operational Information
(US$ in millions except per share and per pound amounts - unaudited)
Three Months Ended
March 31,
2011 2010
Financial
Revenues
Molybdenum sales $ 202.4 $ 124.0
Tolling, calcining and other 4.3 3.8
206.7 127.8
Costs and expenses
Cost of sales
Operating expenses 98.0 76.3
Depreciation, depletion and
amortization 18.4 11.0
Total cost of sales 116.4 87.3
Selling and marketing 2.4 1.5
Accretion expense 0.5 0.4
General and administrative 7.9 5.8
Exploration 3.6 1.7
Total costs and expenses 130.8 96.7
Operating income 75.9 31.1
Other (income) and expense (65.0) 25.1
Income before income and mining taxes 140.9 6.0
Income and mining taxes 12.0 4.9
Net income $ 128.9 $ 1.1
Net income per share
Basic $ 0.78 $ 0.01
Diluted $ 0.73 $ 0.01
Cash generated by operating activities $ 76.6 $ 25.6
Adjusted non-GAAP Measures:(1)
Adjusted net income(1) $ 62.9 $ 25.6
Adjusted net income per share - basic(1) $ 0.38 $ 0.18
Adjusted net income per share - diluted(1) $ 0.36 $ 0.17
Operational Statistics
Mined molybdenum production (000's lb)(2) 10,329 8,269
Cash cost ($/lb produced)(3) $ 5.37 $ 5.36
Molybdenum sold (000's lb):
Thompson Creek and Endako Mine product 10,060 6,735
Purchased and processed product 1,580 1,820
11,640 8,555
Average realized sales price ($/lb)(1) $ 17.39 $ 14.50
_____________________________
(1) See 'Non-GAAP Financial Measures' for the definition and calculation
of these non-GAAP measures.
(2) Mined production pounds reflected are molybdenum oxide and high
performance molybdenum disulfide ('HPM') from our share of production
from the mines; excludes molybdenum processed from purchased product.
(3) Weighted-average of Thompson Creek and Endako Mine (75% share) cash
costs (mining, milling, mine site administration, 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,
stock-based compensation, other non-cash employee benefits and
depreciation, depletion, amortization and accretion. The cash cost for
Thompson Creek Mine, which only produces molybdenum sulfide on site,
includes an estimated molybdenum loss, an allocation of roasting and
packaging costs from the Langeloth Facility, and transportation costs.
See 'Non-GAAP Financial Measures' for additional information.
Summary of Quarterly Results
(US$ in millions except per share and per pound amounts — unaudited)
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
2011 2010 2010 2010 2010 2009 2009 2009
Financial
Revenues $ 206.7 $ 156.8 $ 161.8 $ 148.4 $ 127.8 $ 106.2 $ 114.4 $ 74.0
Operating income
(loss) $ 75.9 $ 47.4 $ 45.6 $ 50.3 $ 31.1 $ 15.8 $ 32.4 $ (0.2)
Net income
(loss) $ 128.9 $ (45.0) $ 31.1 $ 126.5 $ 1.1 $ 26.0 $ (1.4) $ (89.3)
Income (loss) per
share:
- basic $ 0.78 $ (0.28) $ 0.22 $ 0.90 $ 0.01 $ 0.19 $ (0.01) $ (0.73)
- diluted $ 0.73 $ (0.28) $ 0.22 $ 0.87 $ 0.01 $ 0.18 $ (0.01) $ (0.73)
Cash generated by
operating
activities $ 76.6 $ 31.6 $ 59.0 $ 41.2 $ 25.6 $ 38.2 $ 24.2 $ 6.1
Adjusted non-GAAP
Measures:(1)
Adjusted net
income (loss)(1) $ 62.9 $ 34.4 $ 51.6 $ 51.7 $ 25.6 $ 20.4 $ 14.3 $ (6.3)
Adjusted net
income (loss) per
share:(1)
- basic(1) $ 0.38 $ 0.22 $ 0.37 $ 0.37 $ 0.18 $ 0.15 $ 0.11 $ (0.05)
- diluted(1) $ 0.36 $ 0.20 $ 0.36 $ 0.36 $ 0.17 $ 0.14 $ 0.11 $ (0.05)
Operational
Statistics
Mined molybdenum
production
(000's lb) 10,329 9,316 7,958 7,034 8,269 6,268 6,221 6,714
Cash cost ($/lb
produced)(1) $ 5.37 $ 5.81 $ 6.24 $ 7.06 $ 5.36 $ 6.61 $ 5.67 $ 5.21
Molybdenum sold
(000's lb):
Thompson
Creek and
Endako
Mine product 10,060 7,574 7,750 7,013 6,735 6,889 7,445 6,505
Purchased and
processed
product 1,580 1,896 2,513 1,626 1,820 1,464 1,324 997
11,640 9,470 10,263 8,639 8,555 8,353 8,769 7,502
Average realized
sales price
($/lb)(1) $ 17.39 $ 16.05 $ 15.30 $ 16.84 $ 14.50 $ 12.37 $ 12.75 $ 9.41
___________________
(1) See 'Non-GAAP Financial Measures' for the definition and calculation
of these non-GAAP measures.
Updated 2011 Annual Guidance
Production and Cash Costs
-- Thompson Creek Mine - estimated production is expected to be 22
- 24 million pounds (unchanged from previous guidance) and
estimated cash costs are expected to be $6 - $7 per pound
(unchanged from previous guidance).
-- Endako Mine - estimated production (Thompson Creek's 75%) is
expected to be 6 - 8 million pounds of molybdenum (changed from
previous guidance of 8 - 9 million pounds) and estimated cash
costs are expected to be $10 - $12 per pound, assuming a US to
Canadian foreign exchange rate of US$1.00 - C$1.00 for the last
nine months of the year (changed from previous guidance of $9 -
$10 per pound).
-- Total 2011 production is expected to be 28 - 32 million pounds
(changed from previous guidance of 30 - 33 million pounds) and
2011 average cash costs are expected to be $7 - $8 per pound
(unchanged from previous guidance).
For the Thompson Creek Mine, the Company expects that the first half of
2011 will have higher production and lower cash costs than the second
half of 2011. This is primarily the result of the Thompson Creek Mine
pit sequencing and the tapering off of the higher grade production in
the first half of 2011, with more stripping activities and
significantly lower-grade production in the second half of 2011. This
is expected to increase operating expenses and significantly reduce net
income in the second half of 2011.
Capital Expenditures
-- Operations - estimated capital expenditures for the mines,
Langeloth Facility and corporate are expected to be $62 million
(changed from previous guidance of $60 million).
-- Endako Expansion Project - estimated capital expenditures for
Thompson Creek's 75% share of the mill expansion project at the
Endako Mine are expected to be $181 million (unchanged from
previous guidance).
-- Mt. Milligan copper-gold mine - estimated capital expenditures
for the Mt. Milligan development project are expected to be
$437 million (changed from previous guidance of $350 million).
-- Total 2011 capital expenditures are expected to be $680 million
(changed from previous guidance of $591 million).
Exploration Expenditures
-- Thompson Creek and Endako Mines - estimated exploration
expenditures are expected to be $6 - $8 million (changed from
previous guidance of $6 - $7 million for both operating mines).
-- Mount Emmons - estimated exploration expenditures are expected
to be $4 - $5 million. Estimate includes expenditures prior to
termination of the Option Agreement with U.S. Energy Corp. and
wind-down costs in connection with such termination (changed
from previous guidance of $11 - $12 million).
-- Berg - estimated exploration expenditures for the Berg Property
are expected to be $8 - $9 million (changed from previous
guidance of $2 - $3 million). An advanced scoping study will be
initiated in 2011.
-- Other - estimated exploration expenditures are expected to be
approximately $2 million (changed from previous guidance of $1
million).
-- Total 2011 exploration expenditures are expected to be $20 -
$24 million (changed from previous guidance of $20 - $23
million).
Non-GAAP Financial Measures
In addition to the consolidated financial statements presented in
accordance with US GAAP, the Company uses the following non-GAAP
financial measures of its financial performance in this press
release: adjusted net income, adjusted net income per share (basic and
diluted), cash cost per pound produced, weighted average cash cost per
pound produced, and average realized sales price per pound sold. These
are considered key measures by Management in evaluating the Company's
performance. These measures do not have standard meanings prescribed by
US GAAP and may not be comparable to similar measures presented by
other companies. The Company believes these measures provide useful
supplemental information to investors in order for them to evaluate the
Company's financial performance using the same measures as
Management. The Company believes that the use of these measures affords
investors greater transparency in assessing the Company's financial
performance. Non-GAAP financial measures should not be considered in
isolation from, as a substitute for, or superior to, measures of
financial performance prepared in accordance with US GAAP. The
presentation of these measures may be different from non-GAAP financial
measures used by other companies. In addition, these non-GAAP measures
have limitations in that they do not reflect all of the amounts
associated with the results of operations as determined in accordance
with US GAAP.
Adjusted Net Income, Adjusted Net Income Per Share — Basic and Diluted
Adjusted net income represents the net income prepared in accordance
with US GAAP, adjusted for significant non-cash items. For the quarter
ended March 31, 2011 and 2010, the significant non-cash items were the
non-cash gains and losses on the fair value adjustment related to the
Company's outstanding common stock purchase warrants.
On January 1, 2009, Thompson Creek was required to adopt the guidance
issued by the Emerging Issues Task Force that common stock purchase
warrants, with a strike price denominated in a currency other than the
entity's reporting currency, are not considered linked to equity and,
therefore, are to be accounted for as derivatives. The Company has
outstanding common stock purchase warrants denominated in Canadian
dollars. Changes to the fair value of the outstanding warrants are
recorded to the consolidated statements of income at each quarter
end. Since a cash payment will never be required at the settlement of
the Warrants, Management does not consider gains or losses on the
warrants in its evaluation of the Company's financial performance.
Adjusted net income per share (basic and diluted) is calculated using
adjusted earnings, as defined above, divided by the weighted average
basic and weighted average diluted shares outstanding during the
period, as determined in accordance with US GAAP.
The following tables reconcile net income presented in accordance with
US GAAP to the non-GAAP financial measures of adjusted net income, and
adjusted net income per share (basic and diluted) for the three months
ended March 31, 2011 and 2010:
For the Three Months Ended March 31, 2011
(US$ in millions except shares and per share amounts - unaudited)
Weighted Average Weighted Average
Basic Shares Diluted Shares
Shares Shares
Net Income (000's) $/share (000's) $/share
US GAAP measures $ 128.9 165,565 $ 0.78 176,452 $ 0.73
Add (Deduct):
Unrealized (gain) on
common stock warrants (66.0) 165,565 (0.40) 176,452 (0.37)
Non-GAAP measures $ 62.9 165,565 $ 0.38 176,452 $ 0.36
For the Three Months Ended March 31, 2010
(US$ in millions except shares and per share amounts - unaudited)
Weighted Average Weighted Average
Basic Shares Diluted Shares
Shares Shares
Net Income (000's) $/share (000's) $/share
US GAAP measures $ 1.1 139,629 $ 0.01 149,329 $ 0.01
Add (Deduct):
Unrealized loss
on common
stock warrants 24.5 139,629 0.17 149,329 0.16
Non-GAAP
measures $ 25.6 139,629 $ 0.18 149,329 $ 0.17
Cash Cost per Pound Produced and Average Realized Sales Price per Pound
Sold
Cash cost per pound produced represents the mining (including all
stripping costs), milling, mine site administration, roasting and
packaging costs for molybdenum oxide and High-Purity Molybdenum
Disulfide ('HPM') produced at each mine in the period. Stripping costs
represent the costs associated with the activity of removing overburden
and other mine waste materials in the production phase of a mining
operation. Stripping costs that provide access to mineral reserves that
will be produced in future periods are expensed under US GAAP as
incurred. Cash cost per pound produced excludes the effects of purchase
price adjustments, the effects of changes in inventory, stock-based
compensation, other non-cash employee benefits and depreciation,
depletion, amortization and accretion. Cash cost for the Thompson Creek
Mine, which only produces molybdenum sulfide and HPM on site, includes
an estimated molybdenum loss (sulfide to oxide), an allocation of
roasting and packaging costs from the Langeloth Facility, and
transportation costs from the Thompson Creek mine to the Langeloth
Facility. The weighted average cash cost per pound produced represents
the cumulative total of the cash costs for the Thompson Creek Mine and
the Endako Mine divided by the cumulative total production from the
Thompson Creek Mine and the Endako Mine.
The average realized sales price per pound sold represents molybdenum
sales revenue divided by the pounds sold.
(US$ in millions except per pound amounts — Unaudited)
Three months ended March 31, Three months ended March 31,
2011 2010
Pounds Pounds
Operating Produced(1) Operating Produced
Expenses (000's lbs) Expenses (1)
(in (in (000's
millions) $/lb millions) lbs) $/lb
Thompson Creek
Mine
Cash costs
— Non-GAAP
(2) $ 35.9 8,684 $ 4.13 $ 29.9 6,298 $ 4.74
Add/(Deduct):
Stock-based
compensation 0.3 0.9
Inventory and
other
adjustments 7.8 1.2
GAAP operating
expenses $ 44.0 $ 32.0
Endako Mine
Cash costs
— Non-GAAP
(2) $ 19.3 1,645 $ 11.73 $ 14.3 1,971 $ 7.26
Add/(Deduct):
Stock-based
compensation 0.2 0.6
Inventory and
other
adjustments 6.4 (1.0)
GAAP operating
expenses $ 25.9 $ 13.9
Other operations
GAAP operating
expenses (3) $ 28.1 $ 30.4
GAAP
consolidated
operating
expenses $ 98.0 $ 76.3
Weighted-average
cash cost
—
Non-GAAP $ 55.2 10,329 $ 5.37 $ 44.2 8,269 $ 5.36
__________________________
(1) Mined production pounds are molybdenum oxide and HPM from our share
of the production from the mines; excludes molybdenum processed from
purchased product.
(2) Cash costs represent the mining (including all stripping costs),
milling, mine site administration, roasting and packaging costs for
molybdenum oxide and HPM produced in the period. Cash cost excludes:
the effect of purchase price adjustments, the effects of changes in
inventory, stock-based compensation, other non-cash employee benefits
and depreciation, depletion, amortization and accretion. The cash cost
for the Thompson Creek Mine, which only produces molybdenum sulfide and
HPM on site, includes an estimated molybdenum loss (sulfide to oxide),
an allocation of roasting and packaging costs from the Langeloth
Facility, and transportation costs from the Thompson Creek Mine to the
Langeloth Facility.
(3) Other operations represent activities related to the roasting and
processing of third-party concentrate and other metals at the Langeloth
Facility and exclude product volumes and costs related to the roasting
and processing of Thompson Creek Mine and Endako Mine concentrate. The
Langeloth Facility costs associated with roasting and processing of
Thompson Creek Mine and Endako Mine concentrate are included in their
respective operating results above.
Additional information on the Company's financial results is available
in Thompson Creek's Quarterly Report on Form 10-Q for the period ended
March 31, 2011, which was filed today on EDGAR (www.sec.gov) and 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 2011 financial results on Monday, May 9, 2011
at 8:30 am Eastern Time. 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 1 (647) 427-7450 or 1 (888)
231-8191 about five minutes prior to the start of the call. A live
audio webcast of the investor conference call will be available at www.newswire.ca/en/webcast and www.thompsoncreekmetals.com.
An archived recording of the conference call will be available at 1
(416) 849-0833 or 1 (800) 642-1687 (access code 56947200 followed by
the number sign) from 11:30 a.m. Eastern Time on May 9 to 11:59 p.m.
Eastern Time on May 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. is a growing, diversified North
American mining company. The Company produces molybdenum at its
100%-owned Thompson Creek Mine in Idaho and Langeloth Metallurgical
Facility in Pennsylvania and its 75%-owned Endako Mine in northern
British Columbia. The Company is also in the process of constructing
the Mt. Milligan copper-gold mine in northern British Columbia, which
is expected to commence production in 2013. The Company's development
projects include the Davidson molybdenum property and the Berg
copper-molybdenum-silver property, both located in central British
Columbia. Thompson Creek has approximately 967 employees. Its principal
executive office is in Denver, Colorado and its Canadian administrative
office is in 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. Forward-looking
statements include statements with respect to: future financial or
operating performance of Thompson Creek or its subsidiaries and its
projects; future inventory, production, cash costs, capital
expenditures and exploration expenditures; funding sources for the
Endako Mine expansion and Mt. Milligan development costs; 2011
operating goals; and 2011 molybdenum prices.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, risks
related to general business, economic, competitive, political and
social uncertainties including global economic conditions; volatility
in molybdenum prices; labor cost and materials cost fluctuations;
foreign currency fluctuations; energy price fluctuations; project
delays; title disputes or claims; limitations of insurance coverage;
changes in governmental regulation of mining operations; risks related
to the volatility of Thompson Creek's share price; changes in
environmental regulation; the actual results of current exploration
activities; actual results of reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans continue
to be refined; possible variations of ore grade or recovery rates; and
failure of plant, equipment or processes to operate as
anticipated. Additional factors that could cause Thompson Creek's
results to differ from those described in the forward-looking
information can be found in the section entitled 'Risk Factors' in
Thompson Creek's Annual Report on Form 10-K and in Section 1A of Form
10-Q, and subsequent documents filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com. 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, except as required by law. 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, the reader is
cautioned not to place undue reliance on forward-looking statements.
THOMPSON CREEK METALS COMPANY INC.
CONSOLIDATED BALANCE SHEETS
(US dollars in millions)
March 31, December 31,
2011 2010
(in millions, except share data)
ASSETS
Current assets
Cash and cash equivalents $ 303.0 $ 316.0
Accounts
receivable—trade 96.8 63.3
Accounts
receivable—related
parties 10.0 10.0
Product inventory 68.9 75.5
Material and supplies
inventory 32.3 31.5
Prepaid expense and other
current assets 5.3 7.6
Income tax receivable 7.2 12.9
523.5 516.8
Property, plant and equipment,
net 1,831.2 1,696.1
Restricted cash 25.5 23.5
Reclamation deposits 24.8 24.7
Goodwill 47.0 47.0
Other assets 11.7 9.6
$ 2,463.7 $ 2,317.7
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Accounts payable and accrued 99.8 64.8
liabilities $ $
Income and mining taxes
payable 15.1 3.7
Current portion of long-term
debt 5.7 5.4
Deferred income tax
liabilities 10.2 7.7
Other current liabilities — 0.2
130.8 81.8
Gold Stream deferred revenue 226.5 226.5
Long-term debt 14.8 16.6
Other liabilities 23.0 22.4
Asset retirement obligations 30.4 29.2
Common stock warrant
derivatives 108.3 174.7
Deferred income tax
liabilities 333.0 336.6
866.8 887.8
Commitments and contingencies
Shareholders' equity
Common stock, no-par,
165,813,524 and 165,189,873
shares
issued and outstanding,
as of March 31, 2011 and
December 31, 2010,
respectively 988.5 980.9
Additional paid-in capital 49.2 49.2
Retained earnings 475.4 346.5
Accumulated other
comprehensive income 83.8 53.3
1,596.9 1,429.9
$ 2,463.7 $ 2,317.7
THOMPSON CREEK METALS COMPANY INC.
CONSOLIDATED STATEMENTS OF INCOME
(US dollars in millions, except per share data)
Three Months Ended March 31,
2011 2010
(in millions, except per share
amounts)
REVENUES
Molybdenum sales $ 202.4 $ 124.0
Tolling, calcining and
other 4.3 3.8
Total revenues 206.7 127.8
COSTS AND EXPENSES
Cost of sales
Operating expenses 98.0 76.3
Depreciation, depletion
and amortization 18.4 11.0
Total cost of sales 116.4 87.3
Selling and marketing 2.4 1.5
Accretion expense 0.5 0.4
General and administrative 7.9 5.8
Exploration 3.6 1.7
Total costs and expenses 130.8 96.7
OPERATING INCOME 75.9 31.1
OTHER (INCOME) EXPENSE
Loss on foreign exchange 0.3 0.6
Interest and finance fees 0.9 0.1
Change in fair value of
common stock warrants (66.0) 24.5
Other (0.2) (0.1)
Total other (income) and
expense (65.0) 25.1
Income before income and
mining taxes 140.9 6.0
Income and mining tax expense 12.0 4.9
NET INCOME $ 128.9 $ 1.1
NET INCOME PER SHARE
Basic $ 0.78 $ 0.01
Diluted $ 0.73 $ 0.01
Weighted average number of
common shares
Basic 165.6 139.6
Diluted 176.5 149.3
THOMPSON CREEK METALS COMPANY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(US dollars in millions)
Three Months Ended
March 31,
2011 2010
(in millions)
OPERATING ACTIVITIES
Net income $ 128.9 $ 1.1
Items not affecting cash:
Change in fair value of warrants (66.0) 24.5
Depreciation, depletion and 11.0
amortization 18.4
Accretion expense 0.5 0.4
Amortization of finance fees 0.5 —
Stock-based compensation 1.8 2.5
Deferred income taxes (benefit) (5.3) (1.8)
Unrealized loss on derivative 0.6
instruments —
Change in working capital accounts (2.2) (12.7)
Cash generated by operating 25.6
activities 76.6
INVESTING ACTIVITIES
Short-term investments — (30.1)
Capital expenditures (92.9) (19.4)
Restricted cash (1.9) (1.5)
Cash used in investing activities (94.8) (51.0)
FINANCING ACTIVITIES
Debt issuance costs (1.5) —
Repayment of debt (1.5) (1.5)
Proceeds from issuance of common 2.0
shares, net 5.4
Cash generated by financing 0.5
activities 2.4
EFFECT OF EXCHANGE RATE CHANGES ON 2.4
CASH 2.8
DECREASE IN CASH AND CASH EQUIVALENTS (13.0) (22.5)
Cash and cash equivalents, beginning 158.5
of period 316.0
Cash and cash equivalents, end of
period $ 303.0 $ 136.0
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| Pamela Solly Director Investor Relations Thompson Creek Metals Company Inc. Tel: (303) 762-3526 psolly@tcrk.com | Christine Stewart Renmark Financial Communications Inc. Tel: (416) 644-2020 cstewart@renmarkfinancial.com |