Thompson Creek Reports Significantly Improved Third Quarter 2014 Financial Results
Revenue up 153%, Operating Income up 1,318%, Operating Cash Flow up 326% and a Cash Balance of $267 Million
(firmenpresse) - DENVER, CO -- (Marketwired) -- 11/10/14 -- Thompson Creek Metals Company Inc. (NYSE: TC) (TSX: TCM) (the "Company" or "Thompson Creek"), a diversified North American mining company, announced today financial results for the three and nine months ended September 30, 2014, prepared in accordance with United States generally accepted accounting principles ("US GAAP"). All dollar amounts are in United States ("US") dollars unless otherwise indicated.
Jacques Perron, Chief Executive Officer of Thompson Creek, said, "We are pleased with our much improved financial performance for the quarter, as well as year-to-date. For the quarter, we had revenue of $229.3 million, cash flow from operations of $83.0 million, and operating income of $63.8 million. We ended the quarter with $266.6 million of cash, an increase of 23% from the last quarter."
at September 30, 2014 were $266.6 million, compared to $216.1 million at June 30, 2014, $202.7 million at March 31, 2014 and $233.9 million at December 31, 2013.
was $83.0 million in the third quarter of 2014 compared to $19.5 million in the third quarter of 2013.
for the third quarter of 2014 were $229.3 million, up from $90.8 million for the third quarter of 2013, primarily as a result of copper and gold revenue of $100.7 million from Mt. Milligan Mine. For the third quarter of 2014, we made three shipments and sales of copper and gold concentrate.
for copper and gold in the third quarter of 2014 were 16.5 million pounds of copper at an average realized price of $3.02 per pound and 57,974 ounces of gold at an average realized price of $952 per ounce. Molybdenum sales volumes in the third quarter of 2014 were 8.9 million pounds at an average realized price of $13.94 per pound compared to 8.3 million pounds at an average realized price of $10.30 per pound for the third quarter of 2013.
for the third quarter of 2014 was $63.8 million compared to operating income of $4.5 million for the third quarter of 2013. The increase in consolidated operating income in the third quarter of 2014 was due primarily to increased operating income from the Thompson Creek Mine ("TC Mine") and the addition of operating income from Mt. Milligan Mine.
for copper and gold for the third quarter of 2014 were, on a by-product basis, $0.77 per pound of copper, and, on a co-product basis, $1.80 per pound of copper and $477 per ounce of gold. See "Non-GAAP Financial Measures" for the definition and reconciliation of non-GAAP cash costs. The by-product cash cost for copper for the third quarter of 2014 was positively impacted by increased gold ounces sold during the third quarter when compared to the second quarter of 2014; however, a decrease in average realized gold sales prices resulted in higher by-product cash cost for copper for the third quarter, as compared to the second quarter.
for the third quarter of 2014 was $11.1 million, or $0.05 per diluted share, compared to net income of $13.8 million, or $0.06 per diluted share, for the third quarter of 2013. The third quarter of 2014 and 2013 included non-cash foreign exchange losses of $60.3 million and foreign exchange gains of $24.2 million, respectively, primarily on intercompany notes.
for the third quarter of 2014 was $38.3 million, or $0.17 per diluted share, compared to non-GAAP adjusted net loss of $7.6 million, or $0.04 per diluted share, for the third quarter of 2013. Non-GAAP adjusted net income for the third quarter of 2014 and 2013 excluded foreign exchange losses and gains, net of their tax impacts, respectively. See "Non-GAAP Financial Measures" for the definition and reconciliation of non-GAAP adjusted net income (loss).
during the third quarter of 2014 was 16.3 million pounds of copper and 60,366 ounces of gold.
for the third quarter of 2014 was 6.6 million pounds compared to 8.5 million pounds in the third quarter of 2013. Non-GAAP average molybdenum cash cost per pound produced for the third quarter of 2014 was $6.77 per pound compared to $5.93 per pound in the third quarter of 2013. See "Non-GAAP Financial Measures" for the definition and reconciliation of non-GAAP cash costs.
in the third quarter of 2014 were $21.9 million, comprised of $20.5 million for Mt. Milligan Mine and $1.4 million of other capital costs for Endako Mine, TC Mine, the Langeloth Facility and corporate combined, compared to $112.9 million in the third quarter of 2013.
, including capital lease obligations, at September 30, 2014 was $977.1 million, compared to $1,012.8 million at December 31, 2013.
The Mt. Milligan ramp-up continued to advance in the third quarter, with improved copper and gold recoveries of 83.1% and 66.6%, respectively. The Company has been conducting a variety of tests to determine the impact of additional crushing to achieve, and potentially exceed, current design mill throughput of 60,000 tonnes per day. Further tests are expected to be performed through November utilizing various blends of crushed material in order to assist in determining the best course of action for throughput optimization. The Company expects to make a final capital investment decision by year-end and announce its decision in January 2015.
"We are pleased with our progress at Mt. Milligan and continue to track to our previously announced 2014 production and unit cost guidance," said Mr. Perron. "During the quarter, gold production increased to 60,366 ounces, up 63% from the second quarter of 2014. We achieved unit costs for copper of $0.77 per pound on a by-product basis and $1.80 per pound on a co-product basis. Unit cost for gold on a co-product basis was $477 per ounce. We continue to believe that the Mt. Milligan Mine will consistently achieve approximately 80% of the designed mill throughput of 60,000 tonnes per day by year-end," said Mr. Perron.
The Company's molybdenum operations contributed $124.3 million to total revenue in the third quarter, primarily as a result of a higher average realized sales price of $13.94 per pound, up 35.3% from $10.30 per pound in the third quarter of 2013. At TC Mine, mining of Phase 7 ore was completed in August and the Company expects to process stockpiled ore through the remainder of this year. Thereafter, the mine will be placed on care and maintenance. However, while in care and maintenance, the Company intends to conduct limited stripping operations for the next phase of mining. "This limited stripping plan will enable us to maintain the optionality of the mine with a reduced workforce, while continuing to evaluate viable alternatives for the next stage of mining," added Mr. Perron.
"We remain focused on operating our mines safely and efficiently, managing our capital and balance sheet prudently, and building value for our shareholders," said Mr. Perron.
The following table presents our current full year 2014 guidance.
In addition to the condensed consolidated financial statements presented in accordance with US GAAP, management uses certain non-GAAP financial measures to assess the Company's operating performance for the reasons described further below. These measures do not have standard meanings prescribed by US GAAP and may not be comparable to similar measures presented by other companies. The presentation of these measures is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with US GAAP. 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.
Management of the Company uses adjusted net income (loss) and adjusted net income (loss) per share -- basic and diluted to evaluate the Company's operating performance and for planning and forecasting future business operations. The Company believes the use of these measures allows investors and analysts to compare results of the continuing operations of the Company to similar operating results of other mining companies, by excluding items that are considered non-core to the Company's business.
Adjusted net income (loss) represents the income (loss) prepared in accordance with US GAAP, adjusted for significant non-cash items.
For the third quarter and first nine months of 2014 and 2013, the significant non-cash items were the non-cash losses related to the impact of foreign exchange due primarily to intercompany notes, and related tax effects.
In connection with the Company's strategy to manage cash balances, fund operations and provide future tax benefits, the Company may enter into intercompany loan arrangements. At times, the loans are denominated in currencies other than the measurement currency of one of the parties. US GAAP requires that notes that are intended to be repaid should not be considered a capital contribution, and, therefore, the foreign exchange fluctuations related to these loans impact net income (loss) each period. At each period end, the Company compares the exchange rate between the Canadian and US dollars to the exchange rate at the end of the prior reporting period. The difference between those rates is recorded as an unrealized gain or loss on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) at each period end. As the loans between the Company and its subsidiaries are the primary driver of the Company's foreign exchange gains and losses, as discussed above, management does not consider gains or losses on foreign exchange in its evaluation of the Company's financial performance. Management believes that presentation of non-GAAP measures excluding these gains or losses provides useful information to investors regarding the Company's financial condition and results of operations.
Adjusted net income (loss) per share (basic and diluted) is calculated using adjusted net income (loss), 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. If the adjustments to net (loss) on a US GAAP basis result in non-GAAP adjusted net income, the Company calculates weighted-average diluted shares outstanding in accordance with US GAAP and use that to calculate adjusted net income per share -- diluted. If the adjustments to net income on a US GAAP basis result in non-GAAP adjusted net (loss), the Company utilizes weighted-average basic shares outstanding to calculate adjusted net income per share -- diluted, in accordance with US GAAP.
The following table reconciles net income (loss) presented in accordance with US GAAP to the non-GAAP financial measures of adjusted net income (loss) and adjusted net income (loss) per share -- basic and diluted, for the three and nine months ended September 30, 2014 and 2013. All figures within the table are presented in US$ in millions, except shares and per share amounts.
Unit cash cost on a by-product and co-product basis are considered key measures in evaluating operating performance in the Company's Copper and Gold operations, as well as measures of profitability and efficiency on a consolidated basis. Although, unit cash cost on a by-product and co-product basis are not measures of financial performance, do not have standardized meaning prescribed by US GAAP and may not be comparable to similar measures presented by other companies, management believes these non-GAAP measures provide useful supplemental information to investors.
Unit cash cost on a by-product and co-product basis represent the mining, milling, on-site general and administration, truck and rail transportation, warehousing, refining and treatment, and ocean freight and insurance; and exclude the effects of changes in inventory; non-cash corporate allocations; other non-cash employee benefits, such as stock-based compensation; depreciation, depletion, amortization and accretion.
On a by-product basis, sales of by-product metals are deducted when computing cash costs in accordance with the cash cost standard endorsed by the World Gold Council and, previously, the Gold Institute.
On a co-product basis, cash costs are allocated between copper and gold based on production. Copper production is stated in thousands of pounds. Gold production has been converted to thousands of copper equivalent (Cu eq.) pounds using the gold production for the periods presented, as well as the most recent quarterly average prices for copper and gold. The price used for copper is the most recent quarterly average of the Metals Bulletin Daily published price for LME settlement per tonne. The price used for gold is a weighted average of the most recent quarterly average of the Metals Bulletin Daily published prices for daily average London price per ounce adjusted for the fixed price established under the Gold Stream Arrangement ($435 per oz).
The following tables provide a reconciliation of cash costs and unit cash costs, and operating expenses for Copper and Gold operations included in the Company's Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in the determination of net income (loss).
The average realized sales price per payable pound or payable ounce sold is calculated by dividing copper or gold sales revenue, gross, by the pounds or ounces sold, respectively, as shown in the tables below.
Cash cost per pound produced, weighted-average cash cost per pound produced and average realized sales price per pound sold are considered key measures in evaluating the Company's operating performance in its Molybdenum operations, as well as profitability and efficiency on a consolidated basis. Although, cash cost per pound produced, weighted-average cash cost per pound produced and average realized sales price per pound sold are not measures of financial performance, do not have standardized meanings prescribed by US GAAP and may not be comparable to similar measures presented by other companies, management believes these non-GAAP measures provide useful supplemental information to investors.
Cash cost per pound produced represents the mining, milling, on-site general and administration, transportation to Langeloth Facility, and allocation of roasting and packaging from the Langeloth Facility for molybdenum oxide and HPM produced; and excludes the effects of purchase price adjustments; changes in inventory; non-cash corporate allocations; other non-cash employee benefits, such as stock-based compensation; and depreciation, depletion, amortization and accretion. Mining includes all stripping costs. Stripping costs that provide access to mineral reserves that will be produced in future periods are expensed as incurred under US GAAP.
The weighted-average cash cost per pound produced represents the cumulative total of the cash costs for TC Mine and Endako Mine divided by the cumulative total production from TC Mine and Endako Mine.
The following tables provide a reconciliation of cash costs and cash cost per pound produced, by mine, and operating expenses included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) in the determination of net income (loss).
Additional information on the Company's financial position is available in Thompson Creek's Quarterly Report on Form 10-Q for the period ended September 30, 2014, which was filed today on EDGAR () and SEDAR () and posted on the Company's website ().
Thompson Creek will hold a conference call for analysts and investors to discuss its third quarter 2014 financial results on Tuesday, November 11, 2014 at 12:00 pm Eastern Time.
To participate in the call, please dial 1 (888) 211-7383. A live audio webcast of the conference call will be available at and .
An archived recording of the conference call will be available at 1 (888) 203-1112 (replay code 2909360) from 3:00 p.m. ET on November 11, 2014 to 11:59 p.m. ET on November 30, 2014. An archived recording of the webcast will also be available at Thompson Creek's website.
Thompson Creek Metals Company Inc. is a diversified North American mining company. The Company's principal operating properties are its 100%-owned Mt. Milligan Mine, an open-pit copper and gold mine and concentrator in British Columbia, its 100%-owned TC Mine, an open-pit molybdenum mine and concentrator in Idaho, its 75% joint venture interest in the Endako Mine, an open-pit molybdenum mine, concentrator and roaster in British Columbia, and the Langeloth Metallurgical Facility in Pennsylvania. The Company's development projects include the Berg property, a copper, molybdenum, and silver exploration property located in British Columbia and the Maze Lake property, a gold exploration project located in the Kivalliq District of Nunavut, Canada. The Company's principal executive office is located in Denver, Colorado. More information is available at .
This news release contains ''forward-looking statements'' within the meaning of the United States Private Securities Litigation Reform Act of 1995 Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and applicable Canadian securities legislation. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "future," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Our forward-looking statements include, without limitation, statements with respect to: future financial or operating performance of the Company or its subsidiaries and its projects; access to existing or future financing arrangements; future inventory, production, sales, payments from customers, cash costs, capital expenditures and exploration expenditures; future earnings and operating results; expected concentrate and recovery grades; estimates of mineral reserves and resources, including estimated mine life and annual production; statements as to the projected ramp-up of Mt. Milligan and other projects, including expected achievement of design capacities and whether additional crushing is needed; future operating plans and goals; and future molybdenum, copper, gold and silver prices.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the section entitled "Risk Factors" in Thompson Creek's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed on EDGAR at and on SEDAR at . Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors, currently unknown to us or deemed immaterial at the present time that could cause results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond our ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
For more information, please contact:
Pamela Solly
Director, Investor Relations
Thompson Creek Metals Company Inc.
Tel: (303) 762-3526
Barbara Komorowski
Renmark Financial Communications Inc.
Tel: (514) 939-3989
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Datum: 10.11.2014 - 22:21 Uhr
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