Thompson Creek Metals Company Inc. (“Company” or “Thompson Creek”), a growing, diversified North American stage.mining.company, today announced financial results for the three and six months ended June 30, 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 second quarter of 2011 was $190.9 million, up 28.6% from $148.4 million in the second quarter of 2010. Revenue for the first six months of 2011 was $397.6 million, up 44% from $276.2 million for the same period in 2010. Sales volumes for the second quarter of 2011 were 10.8 million pounds, up 25% from 8.6 million pounds in the second quarter of 2010. Sales volumes for the first six months of 2011 were 22.4 million pounds, up 30.4% from 17.2 million pounds for the same period in 2010.
- Net Income for the second quarter of 2011 was $116.8 million, or $0.70 per basic and $0.68 per diluted share, down 7.7% from $126.5 million, or $0.90 per basic and $0.87 per diluted share for the second quarter of 2010. Net income for the second quarter of 2011 included a non-cash unrealized gain on common share purchase warrants of $60.4 million, or $0.36 per basic share and $0.35 per diluted share. Net income for the second quarter of 2010 included a non-cash unrealized gain on common share purchase warrants of $74.8 million, or $0.54 per basic and $0.51 per diluted share.
Net income for the first six months of 2011 was $245.7 million, or $1.48 per basic and $1.41 per diluted share, up 92.6% from $127.6 million, or $0.91 per basic and $0.86 per diluted share for the same period in 2010. Net income for the first six months of 2011 included a non-cash unrealized gain on common share purchase warrants of $126.4 million, or $0.76 per basic and $0.72 per diluted share. Net income for the first six months of 2010 included a non-cash unrealized gain on common share purchase warrants of $50.3 million, or $0.36 per basic and $0.34 per diluted share.
- Non-GAAP Adjusted Net Income for the second quarter of 2011 (excluding the non-cash unrealized gain on the warrants) was $56.4 million, or $0.34 per basic and $0.33 per diluted share, up 9.1% from $51.7 million, or $0.37 per basic and $0.36 per diluted share for the second quarter of 2010.
Non-GAAP adjusted net income for the first six months of 2011 (excluding the non-cash unrealized gain on the warrants) was $119.3 million, or $0.72 per basic and $0.68 per diluted share, up 54.3% from $77.3 million, or $0.55 per basic and $0.52 per diluted share for the same period in 2010.
The Company’s net income continues to be affected by the previously disclosed requirements 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 second quarter of 2011 was 10.0 million pounds, up 42.3% from 7.0 million pounds in the second quarter of 2010. Molybdenum produced for the first six months of 2011 was 20.3 million pounds, up 32.9% from 15.3 million pounds for the same period in 2010.
- Non-GAAP Average Cash Cost Per Pound Produced for the second quarter of 2011 was $5.74 per pound, down 18.7% from $7.06 per pound for the second quarter of 2010. Non-GAAP average cash cost per pound produced for the first six months of 2011 was $5.54 per pound, down 10% from to $6.14 per pound for the same period of 2010.
- Cash Flow From Operations for the second quarter of 2011 was $53.6 million, up 30% from $41.2 million in the second quarter of 2010. Cash flow from operations for the first six months of 2011 was $130.2 million, up 94.9% from $66.8 for the same period in 2010.
- Capital Costs incurred for the first six months of 2011 were $294.5 million, comprised of $153.7 million for the development of Mt. Milligan, $113.5 million for the mill expansion project at the Endako mine (75% share) and $27.3 million for the mines, the Langeloth facility and corporate. The capital costs for the first six months of 2011 included amounts accrued of $43.4 million and capitalized interest of $3.0 million at June 30, 2011; therefore, cash used for capital expenditures for the six months was $248.1 million.
- Total Cash and Cash Equivalents as of June 30, 2011 were $560.4 million, compared to $316.0 million as of December 31, 2010. Total debt as of June 30, 2011 was $369.2 million, compared to $22.0 million as of December 31, 2010.
“Thompson Creek achieved excellent financial performance for the second quarter and first half of the year, with significant increases in revenue, cash flow from operations and adjusted net income,” said Kevin Loughrey, Chairman and Chief Executive Officer of Thompson Creek. “For the first half of 2011, the Company produced 20.3 million pounds of molybdenum and sold 19.0 million pounds of molybdenum from its mines for an average realized molybdenum sales price of $17.33, up 10.5% from $15.68 in the first half of 2010. While we expect our production to be lower and our cash costs to be higher in the second half of the year, the Company is on track to achieve its previously announced production and cash cost guidance for the year,” added Mr. Loughrey.
The Company also announced that the capital expenditures for the mill expansion project at the Endako mine may be approximately 15% higher than the previously announced revised estimate of C$550 million (100%) and the start-up of the new mill to be in the first quarter of 2012. “We look forward to the near-term completion of the Endako state-of-the-art mill facility and are confident that our liquidity and capital resources are sufficient to complete this project, as well as the Mt. Milligan copper-gold project,” added Mr. Loughrey.