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Enter Symbol
or Name
USA
CA



Thompson Creek Metals Company Inc
Symbol TCM
Shares Issued 222,475,350
Close 2016-05-04 C$ 0.54
Market Cap C$ 120,136,689
Recent Sedar Documents

Thompson Creek earns $35.1-million (U.S.) in Q1

2016-05-04 18:46 ET - News Release

Mr. Jacques Perron reports

THOMPSON CREEK REPORTS FIRST QUARTER 2016 FINANCIAL RESULTS

Thompson Creek Metals Company Inc. has released its financial results for the three months ended March 31, 2016, prepared in accordance with U.S. generally accepted accounting principles (GAAP). All dollar amounts are in U.S. dollars unless otherwise indicated.

Jacques Perron, president and chief executive officer of Thompson Creek, said: "During the first quarter, we remained focused on improving our safety performance, optimizing operations at Mount Milligan and containing costs at our molybdenum operations. We are pleased with the quarter-over-quarter increases in throughput, and payable copper and gold production at Mount Milligan, and the 30-per-cent decrease in our unit cash costs on a byproduct basis, resulting from much higher gold sales revenue compared to the first quarter of 2015. We ended the quarter with approximately $169-million of working capital, which included approximately $139-million of cash."

Mr. Perron continued, "Activities relating to the construction of the permanent secondary crushing circuit at Mount Milligan are progressing on schedule and on budget, and we expect to complete construction and commissioning by year-end."

Highlights for the first quarter of 2016

  • Total cash and cash equivalents at March 31, 2016, were $139.1-million, compared with $176.8-million at Dec. 31, 2015. Total debt, including capital lease obligations but excluding unamortized debt issuance costs and debt discounts, was $879.6-million at March 31, 2016, compared with $885.9-million at Dec. 31, 2015.
  • Working capital at March 31, 2016, was $168.7-million, compared with $174.7-million at Dec. 31, 2015.
  • Cash used in operating activities was $15.7-million in the first quarter of 2016, compared with cash used in operating activities of $5.3-million in the first quarter of 2015.
  • Consolidated revenues for the first quarter of 2016 were $97.4-million, compared with $123-million in the first quarter of 2015. Copper and gold sales contributed $73.4-million in revenue in the first quarter of 2016, compared with $68.2-million in the first quarter of 2015. Molybdenum sales were $19.6-million for the first quarter of 2016, compared with $42.8-million in the first quarter of 2015. During the first quarter of 2016, the company completed three shipments of copper-gold concentrate and recorded three sales, compared with four shipments and three sales in the first quarter of 2015.
  • Sales volumes and average realized sales prices for copper and gold for the first quarter of 2016 were 15 million pounds of copper at an average realized price of $2.17 per pound and 44,391 ounces of gold at an average realized price of $1,026 per ounce, compared with 14.8 million pounds of copper at an average realized price of $2.47 per pound and 36,750 ounces of gold at an average realized price of $986 per ounce for the first quarter of 2015. In the first quarter of 2016, the company sold three million pounds of molybdenum, which consisted of roasted molybdenum concentrate sourced from third parties, at an average realized price of $6.47 per pound. In the first quarter of 2015, the company sold 4.3 million pounds of molybdenum, which consisted of inventory produced at its mines in 2014 in addition to third-party-sourced product, at an average realized price of $10.00 per pound.
  • Consolidated operating income for the first quarter of 2016 was $7.4-million, compared with $5.2-million for the first quarter of 2015.
  • Net income for the first quarter of 2016 was $35.1-million or 16 cents per diluted share, compared with a net loss of $87.2-million or 41 cents per diluted share for the first quarter of 2015. The net income for the first quarter of 2016 and the net loss for the first quarter of 2015 included primarily unrealized non-cash foreign exchange gains and losses of $59.4-million and $88.2-million, respectively, primarily on intercompany notes.
  • Non-GAAP adjusted net loss for the first quarter of 2016 was $19.3-million or nine cents per diluted share, compared with non-GAAP adjusted net loss for the same period of 2015 of $14.2-million or seven cents per diluted share. Non-GAAP adjusted net income (loss) excludes foreign exchange gains and losses, net of related income tax effects.
  • Payable production at the Mount Milligan mine for the first quarter of 2016 was 19.1 million pounds of copper and 53,329 ounces of gold, compared with payable production of 15.4 million pounds of copper and 46,119 ounces of gold for the first quarter of 2015.
  • Non-GAAP unit cash cost per pound of copper produced for the first quarter of 2016 was, on a byproduct basis, net of gold credits, 78 cents per pound and was, on a co-product basis, $1.41 per pound of copper and $523 per ounce of gold. Non-GAAP unit cash cost in the first quarter of 2015 was, on a byproduct basis, $1.12 per pound and was, on a co-product basis, $1.64 per pound of copper and $498 per ounce of gold.
  • Capital expenditures for the first quarter of 2016 were $15.6-million, composed of $15.2-million for the Mount Milligan mine and $400,000 for the TC mine, compared with $13.2-million for the first quarter of 2015.

                                        SUMMARY OF QUARTERLY RESULTS
               (in millions of U.S. dollars, except per-share, per-pound and per-ounce amounts)

                                              March 31,       Dec. 31,      Sept. 30,      June 30,     March 31,
                                                  2016           2015           2015          2015          2015
Financial information
Revenues                                    $     97.4     $     95.3     $    141.7     $   134.1     $   123.0
Operating income (loss)                     $      7.4     $      3.2     $     10.5     $    12.1     $     5.2
Net income (loss)                           $     35.1     $     12.9     $    (60.9)    $     0.3     $   (87.2)
Net income (loss) per share
Basic                                       $     0.16     $     0.06     $    (0.28)    $    0.00     $   (0.41)
Diluted                                     $     0.16     $     0.06     $    (0.28)    $    0.00     $   (0.41)
Cash (used in) generated by operating
activities                                  $    (15.7)    $    (19.7)    $     38.5     $    23.9     $    (5.3)
Adjusted non-GAAP measures(1)
Adjusted net (loss) income                  $    (19.3)    $    (17.1)    $     (5.0)    $   (13.5)    $   (14.2)
Adjusted net (loss) income per share
Basic                                       $    (0.09)    $    (0.08)    $    (0.02)    $   (0.06)    $   (0.07)
Diluted                                     $    (0.09)    $    (0.08)    $    (0.02)    $   (0.06)    $   (0.07)
Operational statistics
Copper
Payable production (000s lb)(2)                 19,062         19,473         16,363        20,159        15,405
Cash cost ($/payable lb produced) --
byproduct(1)                                $     0.78     $     0.79     $    (0.16)    $    0.48     $    1.12
Cash cost ($/payable lb produced) --
co-product(1)                               $     1.41     $     1.39     $     1.66     $    1.55     $    1.64
Copper sold (000s lb)                           14,962         16,123         24,427        21,195        14,791
Average realized sales price ($/lb)(1)      $     2.17     $     1.92     $     2.09     $    2.63     $    2.47
Gold
Payable production (oz)(2)                      53,329         58,254         53,791        59,917        46,119
Cash cost ($/payable oz produced) --
co-product(1)                               $      523     $      463     $      527     $     434     $     498
Gold sold (oz)                                  44,391         51,781         75,451        57,920        36,750
Average realized sales price ($/oz)(1)      $    1,026     $      932     $      926     $     975     $     986
Molybdenum
Molybdenum sold (000s lb)
TC mine and Endako mine product                      -            244            592           576         2,552
Purchased and processed product                  3,036          2,410          2,342         1,679         1,733
                                            ----------     ----------     ----------     ---------     ---------
                                                 3,036          2,654          2,934         2,255         4,285
                                            ----------     ----------     ----------     ---------     ---------
Average realized sales price ($/lb)         $     6.47     $     6.39     $     7.86     $    9.23     $   10.00
                                            ==========     ==========     ==========     =========     =========

(1) Non-GAAP financial 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 per cent for copper and 96.5 per cent for gold.


      SELECTED CONDENSED CONSOLIDATED FINANCIAL AND OPERATIONAL INFORMATION
 (in millions of U.S. dollars, except per-share, per-pound and per-ounce amounts)

                                                      Three months ended March 31,
                                                             2016            2015
Financial information
Revenues
Copper sales                                           $     28.1      $     32.2
Gold sales                                                   45.3            36.0
Molybdenum sales                                             19.6            42.8
Tolling, calcining and other                                  4.4            12.0
                                                       ----------      ----------
Total revenues                                               97.4           123.0
                                                       ==========      ==========
Costs and expenses
Cost of sales
Operating expenses                                           57.5            83.0
Depreciation, depletion and amortization                     19.8            20.0
                                                       ----------      ----------
Total cost of sales                                          77.3           103.0
                                                       ==========      ==========
Total costs and expenses                                     90.0           117.8
                                                       ==========      ==========
Operating income                                              7.4             5.2
Other (income) expense                                      (35.2)          109.1
Income (loss) before income and mining taxes                 42.6          (103.9)
Income and mining tax benefit                                 7.5           (16.7)
Net income (loss)                                      $     35.1      $    (87.2)
                                                       ==========      ==========
Net income (loss) per share
Basic                                                  $     0.16      $    (0.41)
Diluted                                                $     0.16      $    (0.41)
Cash used in operating activities                      $    (15.7)     $     (5.3)
Adjusted non-GAAP measures(1)
Adjusted net (loss) income(1)                          $    (19.3)     $    (14.2)
Adjusted net (loss) income per share -- basic(1)       $    (0.09)     $    (0.07)
Adjusted net (loss) income per share -- diluted(1)     $    (0.09)     $    (0.07)
                                                       ==========      ==========


                                                      Three months ended March 31,
                                                             2016            2015
Operational statistics
Copper
Payable production (000s lb)(2)                            19,062          15,405
Cash cost ($/payable lb produced) -- byproduct(1)      $     0.78      $     1.12
Cash cost ($/payable lb produced) -- co-product(1)           1.41      $     1.64
Copper sold (000s lb)                                      14,962          14,791
Average realized sales price ($/lb)(1)                 $     2.17      $     2.47
Gold
Payable production (oz)                                    53,329          46,119
Cash cost ($/payable oz produced) -- co-product(1)     $      523      $      498
Gold sold (oz)                                             44,391          36,750
Average realized sales price ($/oz)(1)                 $    1,026      $      986
Molybdenum sold (000s lb)
TC mine and Endako mine product                        $        -      $    2,552
Purchased and processed product                             3,036           1,733
                                                            3,036           4,285
                                                       ----------      ----------
Average realized sales price ($/lb)                    $     6.47      $    10.00
                                                       ==========      ==========

(1) Non-GAAP financial 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 per cent for copper and 96.5 per cent 
    for gold.

Current guidance

The accompanying table presents the company's guidance for full-year 2016, which remains unchanged from the guidance issued previously.

                                                                          Year ending
                                                                        Dec. 31, 2016
                                                                           (estimated)
Mount Milligan mine copper and gold(1)
Concentrate production (000s dry tonnes)                                   125 to 135
Copper payable production (000s lb)                                  55,000 to 65,000
Gold payable production (000s oz)(1)                                       240 to 270
Unit cash cost -- byproduct ($/payable lb copper produced)(2)          $0.25 to $0.70
Cash capital expenditures ($ in millions, plus or minus 10%)
Mount Milligan operations                                                          $5
Mount Milligan tailings dam                                                       $20
Mount Milligan secondary crusher(3)                                               $47
Total capital expenditures                                                        $72

(1) Estimates for cash costs and capital expenditures assume an average foreign 
    exchange rate of $1 (U.S.) equals $1.28 for 2016.
(2) Assumes gold byproduct credits at a weighted average gold price of $825 per ounce,
    which takes into account the $435 per ounce under the streaming arrangement with 
    Royal Gold.
(3) Excluded $6.2-million in accruals as of Dec. 31, 2015, that were paid in 2016.

Conference call and webcast

Thompson Creek will hold a conference call for analysts and investors to discuss its first quarter 2016 financial results on Thursday, May 5, 2016, at 11 a.m. ET.

To participate in the call, please dial 1-647-427-7450 or 1-888-231-8191. A live audio webcast of the conference call will be available on the company's website and elsewhere on-line.

An archived recording of the conference call will be available through May 19, 2016. To access the recording, dial 1-416-849-0833 or 1-855-859-2056 and enter replay code 86376413. The archived recording will also be available on the Thompson Creek website.

             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)
                      (in millions of U.S. dollars, except per-share amounts)

                                                                              Three months ended March 31,
                                                                                2016                 2015
Revenues
Copper sales                                                           $        28.1        $        32.2
Gold sales                                                                      45.3                 36.0
Molybdenum sales                                                                19.6                 42.8
Tolling, calcining and other                                                     4.4                 12.0
                                                                       -------------        -------------
Total revenues                                                                  97.4                123.0
                                                                       =============        =============
Costs and expenses
Cost of sales
Operating expenses                                                              57.5                 83.0
Depreciation, depletion and amortization                                        19.8                 20.0
                                                                       -------------        -------------
Total cost of sales                                                             77.3                103.0
                                                                       =============        =============
Selling and marketing                                                            2.2                  3.0
Strategic initiatives and related costs                                          3.4                    -
Accretion expense                                                                0.6                  0.6
General and administrative                                                       4.1                  5.6
Costs for idle mining operations                                                 2.4                  5.6
                                                                       -------------        -------------
Total costs and expenses                                                        90.0                117.8
                                                                       =============        =============
Operating income                                                                 7.4                  5.2
Other (income) expense
(Gain) loss on foreign exchange                                                (59.4)                88.2
Interest and finance fees                                                       21.1                 22.6
Gain from debt extinguishment                                                      -                 (0.3)
Interest income                                                                 (0.1)                (0.1)
Other                                                                            3.2                 (1.3)
                                                                       -------------        -------------
Total other (income) expense                                                   (35.2)               109.1
                                                                       =============        =============
Income (loss) before income and mining taxes                                    42.6               (103.9)
                                                                       -------------        -------------
Total income and mining tax expense (benefit)                                    7.5                (16.7)
                                                                       =============        =============
Net income (loss)                                                      $        35.1        $       (87.2)
                                                                       -------------        -------------
Comprehensive income (loss)
Foreign currency translation                                                    69.5                (96.5)
                                                                       -------------        -------------
Total other comprehensive (income) loss                                         69.5                (96.5)
                                                                       -------------        -------------
Total comprehensive income (loss)                                      $       104.6        $      (183.7)
                                                                       =============        =============
Net income (loss) per share
Basic                                                                  $        0.16        $       (0.41)
Diluted                                                                $        0.16        $       (0.41)

We seek Safe Harbor.

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