Thompson Creek Metals Company Inc. 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 U.S. dollars unless otherwise indicated.
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 (loss).
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.
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