In c4825 transmitted on Thursday, February 25, 2010, an error
occurred due to an inadvertent calculation error. The news release
regarding its 2009 Financial Results incorrectly stated the cash
flow from operations in the fifth bullet point of the introductory
overview, as well as the amount of cash generated by operating
activities in the tables 'Selected Consolidated Financial and
Operational Information' and 'Summary of Quarterly Results', for
each quarter in 2009, although the total of $105.9 million for the
2009 year was correct. The correct quarterly numbers for cash flow
from operations (cash generated by operating activities) are $37.4
million in the first quarter of 2009, $6.1 million in the second
quarter, $24.2 million in the third quarter, and $38.2 million in
the fourth quarter. Corrected copy follows: TORONTO, Feb. 25
/PRNewswire-FirstCall/ -- Overview (all in U.S. dollars): -
Fourth-quarter 2009 net income was $26 million or $0.19 per basic
and $0.18 per diluted share, including a non-cash gain of $5.6
million related to the previously announced reclassification
(required under US GAAP) of the Company's outstanding common share
purchase warrants as a derivative liability. - Non-GAAP adjusted
net income in the fourth quarter (excluding the non-cash gain) was
$20.4 million or $0.15 per basic and $0.14 per diluted share. - Net
loss for 2009 was $56 million or $0.44 per basic and diluted share,
which included a previously disclosed $93.4 million non-cash charge
related to the Company's warrants. - Non-GAAP adjusted net income
in 2009 (excluding the non-cash charge) was $37.4 million or $0.29
per basic and diluted share. - Cash flow from operations totaled
$38.2 million in the fourth quarter and $105.9 million in 2009. -
Molybdenum production was 6.3 million pounds in the fourth quarter
and 25.3 million pounds in 2009. - Weighted-average cash cost per
pound produced was $6.61 per pound in the fourth quarter and $5.84
per pound in 2009. - Total cash, cash equivalents and short-term
investments at December 31, 2009 were $511.5 million. Total debt at
year-end was $12.9 million. - The Company reaffirmed previous
estimates for 2010 for molybdenum production of 29 to 32 million
pounds, sales of molybdenum produced at the Company's mines of 27
to 30 million pounds, cash cost per pound produced of $6 to $7 per
pound, and capital expenditures of $298 million, including $209
million for its 75% share of the Endako expansion project. Note: A
conference call and webcast for analysts and investors is scheduled
for Friday, February 26, 2010 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 twelve months ended December
31, 2009 prepared in accordance with United States generally
accepted accounting principles ("US GAAP"). The 2007 and 2008
financial results presented herein have been recast to US GAAP from
Canadian generally accepted accounting principles ("Canadian
GAAP"). All dollar amounts are in United States ("US") dollars
unless otherwise indicated. "During 2009, Thompson Creek's mining
operations successfully achieved operational goals for production
and costs while operating our properties in a safe, environmentally
responsible manner," said Kevin Loughrey, Chairman and Chief
Executive Officer. "When the outlook was uncertain at the start of
the year, we undertook measures to conserve cash through production
and cost reductions and then in the second half, as market
conditions improved, we increased production and resumed the Endako
expansion project. "I wish to congratulate and thank our operations
managers and employees for their excellent performance in achieving
the Company's objectives during difficult economic times," Mr.
Loughrey stated. "As previously announced, since more than 50% of
the Thompson Creek's shares are now held by U.S. residents, the
Company has been required by U.S. Securities and Exchange
Commission rules to adopt US GAAP beginning with the fourth-quarter
2009 results and this has had a significant impact on the 2009
financial results presented herein, mainly due to the different
accounting treatment of the Company's warrants and stripping costs.
By comparison, if the Company was still reporting under Canadian
GAAP, our fourth-quarter 2009 net income would have been $24.7
million or $0.18 per basic and $0.17 per diluted share and our 2009
net income would have been $55.2 million or $0.43 per basic and
$0.42 per diluted share. Details of the reconciliation between US
GAAP and Canadian GAAP are available in Notes 22 and 24 of the
Company's Annual Report on Form 10K, which will be filed with
regulators and posted on our website. "As we begin 2010, the world
economy is showing signs of recovery and Thompson Creek and its
shareholders are in an excellent position to benefit financially
from improving market conditions," Mr. Loughrey said. "Thompson
Creek's mines are currently operating at full capacity and the
Company expects molybdenum production in 2010 to reach a record
level of 29 to 32 million pounds. At the same time, cash costs are
expected to be in the range of $6 to $7 per pound, which is well
below current world molybdenum prices of approximately $17 per
pound. "The medium-term outlook for molybdenum prices remains
favorable, especially as the world industrial economy returns to a
more normal growth rate and that growth stimulates additional
demand for molybdenum." Fourth-Quarter Financial Results The
Company's revenues declined by 42% to $106.2 million in the fourth
quarter of 2009 from $181.6 million a year earlier primarily due to
a 43% decline in the average realized price for molybdenum products
to $12.37 per pound from $21.72 per pound. After the deduction of
operating, selling, marketing, depreciation, depletion,
amortization and accretion costs, the Company generated income from
mining and processing operations totaling $24.7 million in the
fourth quarter, down from $80.4 million a year earlier.
Fourth-quarter net income was $26 million or $0.19 per basic and
$0.18 per diluted share, compared with a net loss of $23.8 million
or $0.19 per basic and diluted share in the fourth quarter of 2008.
Non-GAAP adjusted net income in the fourth quarter of 2009
(excluding a $5.6 million non-cash gain related to the Company's
warrants) was $20.4 million, or $0.15 per basic and $0.14 per
diluted share. This non-cash unrealized gain on common stock
purchase warrants of $5.6 million for the fourth quarter of 2009 is
the result of a previously disclosed requirement under US GAAP to
reclassify the Company's outstanding common stock purchase warrants
as a derivative liability, with changes in the fair market value
recorded in net income (loss), beginning January 1, 2009. The
change to being classified as a derivative liability (from being
classified as equity) is because the exercise price of the warrants
is denominated in Canadian dollars instead of the Company's
functional currency (US dollars). The Company notes that up until
the expiration date of the 24.5 million warrants (exercisable at
CDN$9 per share until October 23, 2011), only one of two scenarios
will occur. One is that the warrants are exercised and the Company
receives cash. The second is that the warrants expire unexercised
and no cash proceeds are received. The Company does not have an
obligation related to the recorded fair value that would require a
cash payment, other than minor administrative expenses related to
the exercise of warrants. In the fourth quarter of 2008, non-GAAP
adjusted net income (excluding a $68.2 million non-cash charge
related to a previously reported write-down of goodwill) was $44.4
million, or $0.36 per basic and diluted share. As a result of the
adoption of US GAAP, the Company is required to expense all
stripping costs in the period they occur (a change from the
requirement under Canadian GAAP that stripping costs be deferred if
they are related to future mining phases). In the fourth quarter of
2009, the Company was required to expense stripping costs of $4.1
million (net of amortization and taxes) that would have been
deferred under Canadian GAAP. This amount represented $0.03 per
basic and diluted share. The Company's mines produced 6.3 million
pounds of molybdenum in the fourth quarter versus 6.2 million
pounds in the third quarter of 2009. The Thompson Creek Mine
produced 4.3 million pounds, down from 4.4 million pounds in the
preceding quarter, while the Company's 75% share of the Endako
Mine's production was 2.0 million, compared with 1.8 million
pounds. The weighted-average cash cost per pound produced
(including all stripping costs) was $6.61 per pound in the fourth
quarter, up from $5.67 per pound in the third quarter of 2009. At
the Thompson Creek Mine, cash cost per pound produced in the fourth
quarter was $6.43 per pound, up from $5.35 per pound in the third
quarter of 2009. The Endako Mine's cash cost per pound produced was
$7.00 per pound, compared with $6.47 per pound in the preceding
quarter. 2009 Financial Results The Company's revenues declined 63%
to $373.4 million in 2009 from $1.01 billion in 2008 primarily due
to a 62% reduction in the average realized price on molybdenum and
upgraded product sales to $11.28 per pound from $30.04 per pound.
The volume of molybdenum sales, including third-party product
sales, declined 3% to 32.1 million pounds from 33 million pounds.
After the deduction of operating, selling, marketing, depreciation,
depletion, amortization and accretion costs, the Company generated
income from mining and processing operations totaling $81.1 million
in 2009, down from $402.2 million a year earlier. Net loss for 2009
was $56 million or $0.44 per basic and diluted share, which
included a previously disclosed $93.4 million pre-tax non-cash
charge related to the Company's outstanding common share purchase
warrants. This non-cash charge was the result of a requirement
under US GAAP to reclassify the Company's outstanding common stock
purchase warrants as a derivative liability because the exercise
price of these warrants is denominated in Canadian dollars instead
of the Company's functional currency (US dollars). In 2008, the
Company had net income of $173.1 million or $1.45 per basic and
$1.31 per diluted share, which included a pre-tax non-cash charge
of $68.2 million related to the write-down of goodwill. Non-GAAP
adjusted net income for 2009 (excluding the non-cash charge related
to the warrants) was $37.4 million, or $0.29 per basic and diluted
share. Non-GAAP adjusted net income for 2008 (excluding the
non-cash charge related to the write-down of goodwill) was $241.3
million or $2.02 per basic and $1.83 per diluted share. For 2009,
as a result of the adoption of US GAAP, the Company was required to
expense stripping costs of $12.8 million (net of amortization and
taxes) that would have been deferred under Canadian GAAP. This
amount represented $0.10 per basic and diluted share. Cash flow
from operating activities in 2009 was $105.9 million, compared with
$389 million a year earlier. Cash, cash equivalents and short-term
investments were $511.5 million on December 31, 2009, compared with
$258 million a year earlier. The Company's total debt was $12.9
million, compared with $17.3 million on December 31, 2008. Capital
expenditures (including accruals) totaled $60.2 million in 2009,
comprised of $39.7 million of sustaining capital expenditures and
$20.5 million for the Company's 75% share of capital expenditures
for the Endako mill expansion. Selected Consolidated Financial and
Operational Information (US$ in millions except per Three months
ended For the year ended pound and per share amounts) December 31,
December 31, -------------------- -------------------- 2009 2008(1)
2009 2008(1) --------- --------- --------- --------- Financial
(unaudited) Revenue Molybdenum sales $ 103.3 $ 176.5 $ 361.9 992.2
Tolling and calcining 2.9 5.1 11.5 19.2 --------- ---------
--------- --------- 106.2 181.6 373.4 1,011.4 --------- ---------
--------- --------- Cost of sales Operating expenses 68.1 86.8
241.3 557.4 Selling and marketing 1.6 2.0 6.2 10.1 Depreciation,
depletion and amortization 11.4 12.1 43.4 40.0 Accretion expense
0.4 0.3 1.4 1.7 --------- --------- --------- --------- 81.5 101.2
292.3 609.2 --------- --------- --------- --------- Income from
mining and processing 24.7 80.4 81.1 402.2 Other (income) expenses
4.1 68.7 135.1 104.8 Income and mining taxes (benefit) (5.4) 35.5
2.0 124.3 --------- --------- --------- --------- Net income (loss)
$ 26.0 $ (23.8) $ (56.0) $ 173.1 --------- --------- ---------
--------- --------- --------- --------- --------- Net income (loss)
per share: Basic $ 0.19 $ (0.19) $ (0.44) $ 1.45 Diluted $ 0.18 $
(0.19) $ (0.44) $ 1.31 Cash generated by operating activities $
38.2 $ 173.1 $ 105.9 $ 389.0 Adjusted non-GAAP Measures:(2)
Adjusted net income (loss)(2) $ 20.4 $ 44.4 $ 37.4 $ 241.3 Adjusted
net income (loss) - basic share(2) $ 0.15 $ 0.36 $ 0.29 $ 2.02
Adjusted net income (loss) - diluted share(2) $ 0.14 $ 0.36 $ 0.29
$ 1.83 Operational Statistics (unaudited) Molybdenum production -
mines (000's lb)(3) 6,268 7,773 25,260 26,045 Cash cost ($/lb
produced)(4) $ 6.61 $ 6.01 $ 5.84 $ 7.54 Molybdenum sold (000's
lb): Thompson Creek and Endako Mine product 6,889 6,558 27,389
22,349 Product purchased, processed and resold 1,464 1,565 4,683
10,681 --------- --------- --------- --------- 8,353 8,123 32,072
33,030 --------- --------- --------- --------- Average realized
price ($/lb)(2) $ 12.37 $ 21.72 $ 11.28 $ 30.04 --------- ---------
--------- --------- --------- --------- --------- --------- (1)
Recast in US GAAP. (2) See "Non-GAAP Financial Measures" below and
in the Annual Report on Form 10-K for the definition and
calculation of these non-GAAP measures. (3) Mined production pounds
reflected are molybdenum oxide and high performance molybdenum
disulfide ("HPM") from the Company's share of the production from
the mines; excludes molybdenum processed from purchased product.
(4) Weighted-average of Thompson Creek Mine and Endako Mine cash
costs (mining, milling, roasting and packaging) for molybdenum
oxide and HPM produced in the period, including all stripping
costs. Cash cost excludes: the effect of purchase price
adjustments, the effects of changes in inventory, stock-based
compensation, other non-cash employee benefits and depreciation,
depletion, amortization and accretion. The cash cost for Thompson
Creek, which only produces sulfide on site, includes an estimated
molybdenum loss, an allocation of roasting and packaging costs from
the Langeloth Metallurgical Facility, and transportation costs. See
"Non-GAAP Financial Measures" in the Annual Report on Form 10-K for
additional information. Summary of Quarterly Results (US$ in
millions except per share and per pound amounts - unaudited and
recast in US GAAP) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 2009 2009
2009 2009 2008 ---------------------------------------------
Financial Revenue $ 106.2 $ 114.4 $ 74.0 $ 78.8 $ 181.6 Income from
mining and processing $ 24.7 $ 38.1 $ 9.8 $ 8.5 $ 80.4 Net income
(loss) $ 26.0 $ (1.4) $ (89.3) $ 8.7 $ (23.8) Income (loss) per
share: - basic $ 0.19 $ (0.01) $ (0.73) $ 0.07 $ (0.19) - diluted $
0.18 $ (0.01) $ (0.73) $ 0.07 $ (0.19) Adjusted non-GAAP
Measures:(1) Adjusted net income (loss)(1) $ 20.4 $ 14.3 $ (6.3) $
9.0 $ 44.4 Adjusted net income (loss) per share:(1) - basic(1) $
0.15 $ 0.11 $ (0.05) $ 0.07 $ 0.36 - diluted(1) $ 0.14 $ 0.11 $
(0.05) $ 0.07 $ 0.36 Cash generated by operating activities $ 38.2
$ 24.2 $ 6.1 $ 37.4 $ 173.1 Operational Statistics Mined molybdenum
production(000's lbs) 6,268 6,221 6,714 6,057 7,773 Cash cost ($/lb
produced)(1) $ 6.61 $ 5.67 $ 5.21 $ 5.93 $ 6.01 Molybdenum sold
(000's lb): Thompson Creek and Endako Mine 6,889 7,445 6,505 6,549
6,558 Purchased and processed product 1,464 1,324 997 898 1,565
--------------------------------------------- 8,353 8,769 7,502
7,447 8,123 --------------------------------------------- Average
realized price ($/lb)(1) $ 12.37 $ 12.75 $ 9.41 $ 10.14 $ 21.72
--------------------------------------------- (1) See "Non-GAAP
Financial Measures" in the Annual Report on Form 10-K for the
definition and calculation of these non-GAAP measures. Outlook For
2010, the Company maintains its previously disclosed guidance.
Molybdenum production is expected to be 29 to 32 million pounds,
with the Thompson Creek Mine at approximately 22 to 24 million
pounds and the 75% share of the Endako Mine at 7 to 8 million
pounds. Anticipated average cash costs per pound produced for the
year are estimated at $6 to $7 per pound, with $5.50 to $6.50 per
pound at the Thompson Creek Mine and $7 to $8 per pound at the
Endako Mine (assuming a US to Canadian dollar exchange rate of
1.05). For the Endako Mine, a $0.01 change in the Canadian foreign
exchange rate would result in a $0.10 change in the cash cost per
pound produced. The Company expects to sell 27 to 30 million pounds
from its own mines. The Company has some flexibility in building or
depleting inventory levels depending upon the economic conditions
and the related demand and sales prices for molybdenum. The
Langeloth Metallurgical Facility is planning a five-week shutdown
in late April 2010 for maintenance and repairs. The Company expects
to build inventory through the first four months of 2010 in
anticipation of this shutdown. For 2010, the Company currently has
forward sales contracts for approximately 1.5 million pounds at an
average fixed price of $14.54 per pound for molybdenum oxide.
Capital expenditures for 2010 are expected to be $298 million,
including $209 million for its 75% share of capital expenditures
required for the mill expansion project at the Endako Mine. The
project includes the construction of a new, modern Endako mill,
which will replace the existing 45-year-old mill and raise
ore-processing capacity from the existing 31,000 tons per day to
55,000 tons per day. Operating permits required by the mill
expansion are proceeding, including the development of a closure
plan for expanded waste dumps and tailing facilities and minor
amendments to the Mining Act permit. In 2010, the Company expects
to conduct exploration drilling at both of its operating mines
totaling $2 to $4 million. For 2010, the Company expects to spend
approximately $7 to $9 million under the option agreement with U.S.
Energy on the Mount Emmons Project for an ongoing pre-feasibility
study, further engineering evaluations, and ongoing project
maintenance. The Company is conducting an internal re-evaluation of
the Davidson Project regarding various operating alternatives and
related economic analysis. As a result, the Company expects to have
minimal expenditures on the Davidson Project in 2010. Non-GAAP
Financial Measures In addition to the audited consolidated
financial statements presented in accordance with US GAAP, the
Company uses certain non-GAAP financial measures of the Company's
financial performance for the reasons described further below and
in the Annual Report on Form 10-K. 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, and the
presentation of these measures may be different from non-GAAP
financial measures used by other companies. 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. Adjusted Net Income (Loss),
Adjusted Net Income (Loss) Per Share - Basic and Diluted Adjusted
net income (loss), and adjusted net income (loss) per share- basic
and diluted, are referred to in this news release. These are
considered key measures by management in evaluating the Company's
performance. These measures do not have standard meanings
prescribed by US GAAP, and may not be comparable to similar
measures presented by other companies. Management believes these
measures provide useful supplemental information to investors in
order that they may evaluate the Company's financial performance
using the same measures as management. Adjusted net income (loss)
represents the net income (loss) prepared in accordance with US
GAAP, adjusted for significant non-cash items. For 2009, the
significant non-cash items were the non-cash gains (losses) on the
fair value adjustment related to the Company's outstanding common
stock purchase warrants. For 2008, the significant non-cash item
was the non-cash write-down of goodwill. The following tables are a
reconciliation of the 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 year ended December 31, 2009 and 2008 and for the
fourth quarters in 2009 and 2008. For the year ended December 31,
2009 (unaudited - US$ in millions except shares and per share
amounts) Weighted Average Weighted Average Basic Shares Diluted
Shares ----------- ------------------- ------------------- Net
Income Shares Shares (Loss) (000's) $/share (000's) $/share
----------- ------------------- ------------------- US GAAP
measures $ (56.0) 127,521 $ (0.44) 127,521 $ (0.44) Add (Deduct):
Unrealized (gain) loss on common stock warrants 93.4 127,521 0.73
130,702 0.72 ----------- --------- --------- Non-GAAP measures $
37.4 127,521 $ 0.29 130,702 $ 0.29 ----------- --------- ---------
----------- --------- --------- For the year ended December 31,
2008 (unaudited - US$ in millions except shares and per share
amounts) Weighted Average Weighted Average Basic Shares Diluted
Shares ----------- ------------------- ------------------- Net
Income Shares Shares (Loss) (000's) $/share (000's) $/share
----------- ------------------- ------------------- US GAAP
measures $ 173.1 119,524 $ 1.45 131,754 $ 1.31 Add : Non-cash
goodwill impairment 68.2 119,524 0.57 131,754 0.52 -----------
--------- --------- Non-GAAP measures $ 241.3 119,524 $ 2.02
131,754 $ 1.83 ----------- --------- --------- -----------
--------- --------- For the three months ended December 31, 2009
(unaudited - US$ in millions except shares and per share amounts)
Weighted Average Weighted Average Basic Shares Diluted Shares
----------- ------------------- ------------------- Net Income
Shares Shares (Loss) (000's) $/share (000's) $/share -----------
------------------- ------------------- US GAAP measures $ 26.0
139,359 $ 0.19 146,916 $ 0.18 Add (Deduct): Unrealized (gain) loss
on common stock warrants (5.6) 139,359 (0.04) 146,916 (0.04)
----------- --------- --------- Non-GAAP measures $ 20.4 139,359 $
0.15 146,916 $ 0.14 ----------- --------- --------- -----------
--------- --------- For the three months ended December 31, 2008
(unaudited - US$ in millions except shares and per share amounts)
Weighted Average Weighted Average Basic Shares Diluted Shares
----------- ------------------- ------------------- Net Income
Shares Shares (Loss) (000's) $/share (000's) $/share -----------
------------------- ------------------- US GAAP measures $ (23.8)
122,596 $ (0.19) 122,596 $ (0.19) Add (Deduct): Non-cash goodwill
impairment 68.2 122,596 0.55 122,679 0.55 ----------- ---------
--------- Non-GAAP measures $ 44.4 122,596 $ 0.36 122,679 $ 0.36
----------- --------- --------- ----------- --------- ---------
Additional information on the Company's financial position is
available in Thompson Creek's Annual Report on Form 10-K for the
period ended December 31, 2009, which will be filed with EDGAR
(http://www.sec.gov/) and SEDAR (http://www.sedar.com/), and posted
on the Company's website (http://www.thompsoncreekmetals.com/).
Disclosure Controls and Procedures As of December 31, 2008,
management had identified a material weakness in disclosure
controls and procedures and internal control over financial
reporting related to the accounting of complex GAAP transactions.
As of December 31, 2009, management completed the execution of a
remediation plan, evaluated and tested the effectiveness of these
controls as of December 31, 2009 and determined that the material
weakness has been remediated. Please refer to Thompson Creek's
Annual Report on Form 10-K for more information. Conference call
and webcast Thompson Creek will hold a conference call for analysts
and investors to discuss its 2009 financial results on Friday,
February 26, 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 647-427-7450 or 1-888-231-8191
about five minutes prior to the start of the call. A live audio
webcast of the conference call will be available at
http://www.newswire.ca/ and http://www.thompsoncreekmetals.com/. An
archived recording of the call will be available at 416-849-0833 or
1-800-642-1687 (Access code 51166565 followed by the number sign)
from 11:30 a.m. on February 26 to 11:59 p.m. on March 5. 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
Denver, Colorado, and it also has an office in Toronto, Ontario.
More information is available at
http://www.thompsoncreekmetals.com/. Cautionary Note Regarding
Forward-Looking Statements
---------------------------------------------------- This news
release contains "forward-looking information" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation which may
include, but is not limited to, statements with respect to the
future financial or operating performance of the Company, its
subsidiaries and its projects, the future price of molybdenum,
currency fluctuations, energy price fluctuations, the estimation of
mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production,
costs of production, capital, operating and exploration
expenditures, costs and timing of the development of new deposits,
costs and timing of future exploration, requirements for additional
capital, government regulation of mining operations, environmental
risks, reclamation expenses, title disputes or claims and
limitations of insurance coverage. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company and/or its subsidiaries
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to
general business, economic, competitive, political and social
uncertainties including the current global recessionary economic
conditions, the associated low molybdenum prices and the levels of
disruption and continuing illiquidity in the credit markets; risks
related to foreign currency fluctuations; risks related to the
volatility of the Company's share price; changes in environmental
regulation; the actual results of current exploration activities;
actual results of reclamation activities; conclusions of economic
evaluations; changes in project parameters as plans continue to be
refined; possible variations of ore grade or recovery rates;
impurities and toxic substances in the mined material, failure of
plant, equipment or processes to operate as anticipated; the age of
the Langeloth Facility; structural integrity and old equipment at
the Endako Mine; accidents, labor disputes and other risks of the
mining industry; access to skilled labor; relations with employees;
dependence upon key management personnel and executives; political
instability, insurrection or war; disruption of transportation
services; increased transportation costs and delays in obtaining
governmental permits and approvals, or financing or in the
completion of development or construction activities, as well as
those factors discussed in the section entitled "Risk Factors" in
the current Annual Report on Form 10-K filed on EDGAR at
http://www.sec.gov/ and on SEDAR at http://www.sedar.com/. Although
the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking statements
contained herein are made as of the date of this news release and
the Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or results or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements. Readers should refer to Thompson Creek's current Annual
Report on Form 10-K which will be available on SEDAR at
http://www.sedar.com/ and EDGAR at http://www.sec.gov/ and other
continuous disclosure documents available at http://www.sedar.com/
and http://www.sec.gov/ for further information on ore reserves and
mineralized material, which is subject to the qualifications and
notes set forth therein. CONSOLIDATED BALANCE SHEETS (US dollars in
millions) December 31, --------------------- 2009 2008 ----------
---------- (recast US ASSETS GAAP) Current assets Cash and cash
equivalents $ 158.5 $ 258.0 Short-term investments 353.0 - Accounts
receivable - trade 32.4 46.1 Accounts receivable - related parties
10.3 8.9 Product inventory 43.5 59.9 Material and supplies
inventory 34.5 36.2 Prepaid expense and other current assets 6.0
6.3 Income tax receivable 4.8 1.4 ---------- ---------- 643.0 416.8
Property, plant and equipment, net 605.7 538.5 Restricted cash 16.8
14.2 Reclamation deposits 30.3 26.9 Goodwill 47.0 47.0 Other assets
1.8 3.0 ---------- ---------- $1,344.6 $1,046.4 ----------
---------- ---------- ---------- LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities Accounts payable and accrued liabilities
$ 29.9 $ 36.5 Income and mining taxes payable 3.6 7.5 Current
portion of long-term debt 3.7 5.6 Deferred income tax liabilities
6.7 8.1 ---------- ---------- 43.9 57.7 Long-term debt 9.2 11.7
Other liabilities 24.6 21.8 Asset retirement obligations 24.8 23.3
Common stock warrant derivatives 115.4 - Deferred income tax
liabilities 141.3 141.3 ---------- ---------- 359.2 255.8
---------- ---------- Shareholders' equity Common stock, no-par,
139,511,257 and 122,253,257 shares issued and outstanding, as of
December 31, 2009 and 2008, respectively. 697.1 485.7 Common stock
warrants - 35.0 Additional paid-in-capital 45.7 40.4 Retained
earnings 232.8 275.8 Accumulated other comprehensive income (loss)
9.8 (46.3) ---------- ---------- 985.4 790.6 ---------- ----------
$1,344.6 $1,046.4 ---------- ---------- ---------- ----------
CONSOLIDATED STATEMENTS OF OPERATIONS (US dollars in millions,
except per share amounts) Year Ended December 31,
------------------------------- 2009 2008 2007
------------------------------- REVENUES (Recast US GAAP)
Molybdenum sales $ 361.9 $ 992.2 $ 891.1 Tolling, calcining and
other 11.5 19.2 23.3 --------- --------- --------- 373.4 1,011.4
914.4 --------- --------- --------- COST OF SALES Operating
expenses 241.3 557.4 588.8 Selling and marketing 6.2 10.1 9.0
Depreciation, depletion and amortization 43.4 40.0 48.2 Accretion
expense 1.4 1.7 1.7 --------- --------- --------- 292.3 609.2 647.7
--------- --------- --------- OTHER (INCOME) EXPENSES Goodwill
impairment - 68.2 - General and administrative 25.1 37.9 25.1
Exploration 6.3 8.0 4.6 Loss (gain) on foreign exchange 10.9 (21.5)
2.1 Interest and finance fees 1.2 15.1 42.1 Interest income (1.5)
(2.4) (7.8) Change in fair value of common stock warrants 93.4 - -
Other (0.3) (0.5) (0.7) --------- --------- --------- 135.1 104.8
65.4 --------- --------- --------- Income (loss) before income and
mining taxes (54.0) 297.4 201.3 Income and mining taxes (benefit)
Current 17.2 112.7 103.1 Deferred (15.2) 11.6 (41.4) ---------
--------- --------- 2.0 124.3 61.7 --------- --------- ---------
NET INCOME (LOSS) $ (56.0) $ 173.1 $ 139.6 --------- ---------
--------- --------- --------- --------- NET INCOME (LOSS) PER SHARE
Basic $ (0.44) $ 1.45 $ 1.27 --------- --------- ---------
--------- --------- --------- Diluted $ (0.44) $ 1.31 $ 1.10
Weighted average number of common shares Basic 127.5 119.5 110.2
Diluted 127.5 131.7 126.6 CONSOLIDATED STATEMENTS OF CASH FLOWS (US
dollars in millions) Year Ended December 31,
------------------------------- 2009 2008 2007
------------------------------- OPERATING ACTIVITIES (Recast US
GAAP) Net income (loss) $ (56.0) $ 173.1 $ 139.6 Items not
affecting cash: Goodwill impairment - 68.2 - Change in fair value
of warrants 93.4 - - Depreciation, depletion and amortization 43.4
40.0 48.2 Accretion expense 1.4 1.7 1.7 Amortization of finance
fees - 5.4 7.5 Stock-based compensation 9.2 15.6 16.3 Deferred
income taxes (benefit) (15.2) 11.6 (41.3) Unrealized loss (gain) on
derivative instruments 3.5 (15.4) 4.8 Change in working capital
accounts 26.2 88.8 (28.4) --------- --------- --------- Cash
generated by operating activities 105.9 389.0 148.4 ---------
--------- --------- INVESTING ACTIVITIES Short-term investments
(341.3) - - Capital expenditures (66.1) (101.3) (14.7) Restricted
cash (2.6) (4.2) (1.6) Reclamation deposit (2.6) (1.0) (2.8)
Acquisition cost - (100.0) - --------- --------- --------- Cash
used in investing activities (412.6) (206.5) (19.1) ---------
--------- --------- FINANCING ACTIVITIES Proceeds from issuance of
common shares, net 206.0 223.9 50.8 Repurchase of common shares -
(19.2) - Repayment of long-term debt (5.3) (262.1) (168.2) Proceeds
from issuance of long-term debt - 36.5 - --------- ---------
--------- Cash generated (used) by financing activities 200.7
(20.9) (117.4) --------- --------- --------- EFFECT OF EXCHANGE
RATE CHANGES ON CASH 6.5 (17.3) 3.7 --------- --------- ---------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (99.5) 144.3 15.6
Cash and cash equivalents, beginning of period 258.0 113.7 98.1
--------- --------- --------- Cash and cash equivalents, end of
period $ 158.5 $ 258.0 $ 113.7 --------- --------- ---------
--------- --------- --------- CONTACT: Wayne Cheveldayoff, Director
of Investor Relations, Thompson Creek Metals Company Inc., Tel:
(416) 860-1438, Toll free: 1-800-827-0992, ; Dan Symons, Renmark
Financial Communications Inc., Tel.: (514) 939-3989, DATASOURCE:
Thompson Creek Metals Company Inc. CONTACT: Wayne Cheveldayoff,
Director of Investor Relations, Thompson Creek Metals Company Inc.,
Tel: (416) 860-1438, Toll free: 1-800-827-0992, ; Dan Symons,
Renmark Financial Communications Inc., Tel.: (514) 939-3989,
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