Overview (all in U.S. dollars):
• Net income in the third quarter was $19.7 million or $0.16 per basic and $0.14 per diluted share, compared with a net loss in the second quarter of $0.4 million or $0.00 per basic and diluted common share. The improved financial results were due to both higher realized prices and an increase in sales of molybdenum from the Company’s mines to 7.4 million pounds in the third quarter from 6.5 million in the second quarter.
• Molybdenum production was 6.2 million pounds in the third quarter of 2009, down from 6.7 million pounds in the second quarter. The reduction was due to a planned two-week shutdown of both mines during the third quarter.
• Weighted-average cash cost per pound produced rose to $5.6 7 per pound in the third quarter from $5.21 per pound in the second quarter.
• 2009 guidance for molybdenum production has been revised to 24 to 26 million pounds (versus previous guidance of 22 to 26 million pounds). Sales of molybdenum produced at the Company’s mines this year are expected to be 26 to 27 million pounds (up from previous guidance of 22 to 26 million pounds). The guidance range for cash cost per pound produced has been narrowed to $5.80 to $6.30 per pound (from previous guidance of $5.75 to $7.00 per pound).
• For 2010, the Company expects molybdenum production will be 29 to 32 million pounds and cash cost per pound produced is estimated at $6 to $7 per pound. Sales of molybdenum produced at the Company’s mines are expected to be 27 to 30 million pounds.
• Total cash, cash equivalents and short-term investments at September 30, 2009 were $478.2 million, including $194.6 million in net proceeds from an equity issue complete d in the third quarter. Total debt at quarter-end was $14.3 million.
• Average realized price on molybdenum and upgraded product sales was $12.75 per pound in the third quarter, up from $9.41 per pound in the second quarter and $10.14 per pound in the first quarter of 2009.
• Total capital expenditures were $47.5 million in the first nine months of 2009 and guidance for the full year has been revised to $61 million (from previous guidance of $80 million).
Note: A conference call and webcast for analysts and investors is scheduled for Friday, November 6, 2009 at 8:30 a.m. Eastern.
Thompson Creek Metals Company Inc. (“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, 2009 prepared in accordance with Canadian generally accepted accounting principles. All dollar amounts are in U.S. dollars unless otherwise indicated.
“Thompson Creek’s financial results improved in the third quarter primarily due to higher molybdenum prices,” said Kevin Loughrey, Chairman and Chief Executive Officer. “In addition, our mining operations remained on track to achieve annual production and cost guidance that we had previously announced for 2009.
“Due to the improved outlook for molybdenum market fundamentals, the Company intends to operate the mill at the Thompson Creek Mine at full capacity starting in January 2010 (up from 78% of full capacity currently), and we expect that this will result in an increase of over 20% in the Company’s annual molybdenum production to a range of 29 to 32 million pounds in 2010 from 24 to 26 million pounds in 2009.”
Third-Quarter Financial Results
The Company’s revenues declined by 65% to $114.4 million in the third quarter of 2009 from $331.1 million a year earlier primarily due to a 61% decline in the average realized price for molybdenum and upgraded products to $12.75 per pound from $32.85 per pound. Sales volume for molybdenum produced at the Company’s mines was 8% higher at 7.4 million pounds in the third quarter versus 6.9 million pounds a year earlier.
After the deduction of operating, selling, marketing, depreciation, depletion, amortization and accretion costs, the Company generated income from mining and processing operations totaling $43 million in the third quarter, down from $159 million a year earlier.
Third-quarter net income was $19.7 million or $0.16 per basic and $0.14 per diluted common share, compared with $100.6 million or $0.80 per basic and $0.74 per diluted common share in the third quarter of 2008.
The per-share figures are based on a weighted-average number of shares outstanding of 125.9 million basic and 136.2 million diluted in the third quarter of 2009, compared with 125.0 million basic and 136.8 million diluted in the third quarter of 2008. At November 5, 2009, there were 139.2 million common shares, 24.5 million warrants and 5.1 million employee options outstanding.
Third-quarter cash flow from operating activities was $28.6 million, compared with $110.3 million a year earlier.
Conference call and webcast
Thompson Creek will hold a conference call for analysts and investors to discuss its third-quarter 2009 financial results on Friday, November 6, 2009 at 8:30 a.m. (Eastern). 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 416-644-3425 or 1-800-589-8577 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 (Access code 4169885 followed by the number sign) from 10:30 a.m. on November 6 to 11:59 p.m. on November 13. 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 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 is evaluating the Mount Emmons Deposit, a high-grade underground molybdenum deposit near Crested Butte, Colorado. Thompson Creek has an option to acquire up to 75% of the property. The Company is continuing to pursue permitting of the Davidson Deposit, a high-grade underground molybdenum deposit near Smithers, B.C. The Company has approximately 750 employees. Its principal executive office is in D enver, Colorado, and it also has an office in Toronto, Ontario. More information is available at www.thompsoncreekmetals.com.
