Q1,2014Thompson Creek loses $39.1-million (U.S.) in Q1 2014-05-12 17:59 ET - News Release Ms. Pamela Solly reports THOMPSON CREEK METALS COMPANY REPORTS FIRST QUARTER 2014 REVENUE OF $161-MILLION, AN INCREASE OF 48% FROM FIRST QUARTER 2013, AND CASH FLOW FROM OPERATIONS OF $16.2-MILLION Thompson Creek Metals Company Inc. has released financial results for the three months ended March 31, 2014, prepared in accordance with U.S. generally accepted accounting principles. All dollar amounts are in United States ("US") dollars unless otherwise indicated. Highlights forthe First Quarter 2014 Consolidated revenues for the first quarter of 2014 increased 48.1% over consolidated revenues for the first quarter of 2013, primarily as a result of added revenue generated from sales of copper and gold from Mt. Milligan Mine, which began the commissioning and start-up phase in the third quarter of 2013 and reached commercial production (defined as operation of the mill at 60% design capacity mill throughput for 30 days) as of February 18, 2014. For the first quarter of 2014, the Company made three shipments of concentrate and recorded two sales of copper and gold concentrate. The sale for the last shipment was recorded in early April 2014 and represented future revenues of $15.1 million for copper and $13.9 million for gold. Payable production at Mt. Milligan during the first quarter of 2014 was 14.2 million pounds of copper and 39,181 ounces of gold, and average realized sales prices for copper and gold in the first quarter of 2014 were $3.01 per pound and $1,025 per ounce, respectively. Molybdenum sales volumes increased by 1.0 million pounds for the first quarter of 2014 as compared to the first quarter of 2013, but Thompson Creek's average realized molybdenum sales price decreased to $10.45 per pound in the first quarter of 2014, representing a $1.42 per pound decrease from the first quarter of 2013. Molybdenum production for the first quarter of 2014 was 7.9 million pounds compared to 7.7 million pounds in the first quarter of 2013, resulting primarily from higher mill recoveries at the Company's mines, partially offset by lower grade ore. Consolidated operating income for the first quarter of 2014 was $13.1 million compared to an operating income of $17.0 million for the first quarter of 2013. Consolidated operating results were impacted by lower-of-cost-or-market molybdenum product inventory write downs from Endako Mine of $6.9 million and $5.6 million in the first quarter of 2014 and 2013, respectively. Net loss for the first quarter of 2014 was $39.1 million, or $0.23 per diluted share compared to net income for 2013 of $0.9 million, or nil per diluted share. The first quarter of 2014 and 2013 included non-cash foreign exchange losses of $46.5 million and $19.4 million, respectively, primarily on intercompany notes. Non-GAAP adjusted net income for the first quarter of 2014 was $4.3 million, or $0.02 per diluted share, compared to non-GAAP adjusted net income of $18.0 million, or $0.08 per diluted share for the first quarter of 2013. Non-GAAP adjusted net income for the first quarter of 2014 and 2013 excludes foreign exchange losses. Non-GAAP unit cash costs for copper and gold for the first quarter of 2014 were, on a by-product basis, $2.29 per pound of copper, and, on a co-product basis, $2.27 per pound of copper and $606 per ounce of gold. Non-GAAP average molybdenum cash cost per pound produced for the first quarter of 2014 was $5.75 per pound compared to $5.91 per pound in the first quarter of 2013. Cash generated by operating activities was $16.2 million in the first quarter of 2014 compared to $15.3 million in the first quarter of 2013. Capital expenditures in the first quarter of 2014 were $21.8 million, comprised of $20.9 million for Mt. Milligan Mine and $0.9 million of other capital costs for Endako Mine, TC Mine, the Langeloth Facility and corporate combined, compared to $155.1 million in the first quarter of 2013. Total cash and cash equivalents at March 31, 2014 were $202.7 million compared to $233.9 million at December 31, 2013. Total debt at March 31, 2014 was $1,003.6 million, including capital lease obligations, compared to $1,012.8 million at December 31, 2013. Jacques Perron, Chief Executive Officer of Thompson Creek, said, "During the first quarter of 2014, we continued to focus on execution and are pleased to report good progress at Mt. Milligan. As previously disclosed, we reached a significant milestone in February of this year when Mt. Milligan achieved commercial production. Our new Mt. Milligan leadership team focused on the optimization of the mine and mill, which resulted in improvements in concentrate production and cash costs. Payable copper production increased 52.1% from the previous quarter and by-product cash costs decreased 68.8%. Payable gold production increased 118.3% from the previous quarter, and co-product cash costs decreased 56.3%. We expect Mt. Milligan to ramp up to 75 to 80% of the designed mill throughput of 60,000 tonnes per day by the end of 2014 and continue to ramp up to 100% during 2015." Given the ramp up of Mt. Milligan in 2014 and 2015, management expects Mt. Milligan to be cash flow positive in the second half of this year and the Company in the fourth quarter of this year, depending upon the timing of shipments and provisional payments from the Company's offtakers. Management expects to maintain a minimum liquidity level of $75 - $100 million. As a result of the Company's performance in the first quarter and the increase in the molybdenum price, management is confident this will be achievable. The Company continued to experience improved molybdenum production and costs for the first quarter of 2014, with total production of 7.9 million pounds and average cash costs of $5.75, compared to 7.7 million pounds and average cash costs of $5.91 for the first quarter of 2013. The Company's average realized sales price for the first quarter of 2014 was $10.45 per pound of molybdenum, compared to $11.87 for the first quarter of 2013. Selected Consolidated Financial and Operational Information (US$ in millions, except per share, per pound and per ounce amounts) Three Months Ended March 31, March 31, 2014 2013 Financial Information REVENUES Copper sales $ 29.8 $ - Gold sales 24.4 - Molybdenum sales 102.9 104.7 Tolling, calcining and other 3.9 4.0 Total revenues 161.0 108.7 COSTS AND EXPENSES Cost of sales Operating expenses 107.8 68.6 Depreciation, depletion and amortization 28.4 12.8 Total cost of sales 136.2 81.4 Total costs and expenses 147.9 91.7 OPERATING INCOME (LOSS) 13.1 17.0 OTHER (INCOME) EXPENSE 67.2 19.3 Income (loss) before income and mining taxes (54.1) (2.3) Income and mining tax (benefit) expense (15.0) (3.2) NET INCOME (LOSS) $ (39.1) $ 0.9 NET INCOME (LOSS) PER SHARE Basic $ (0.23) $ 0.01 Diluted $ (0.23) $ - Cash generated by (used in) operating activities $ 16.2 $ 15.3 Adjusted Non-GAAP Measures: (1) Adjusted net income (loss) (1) $ 4.3 $ 18.0 Adjusted net income (loss) per share-basic (1) $ 0.03 $ 0.11 Adjusted net income (loss) per share-diluted (1) $ 0.02 $ 0.08 Three Months Ended March 31, March 31, 2014 2013 Operational Statistics Copper Payable production (000's lb) 14,223 - Cash cost ($/payable lb produced) - By-Product (1) $ 2.29 - Cash cost ($/payable lb produced) - Co-Product (1) $ 2.27 - Payable production sold (000's lb) 10,793 - Average realized sales price ($/lb) (1) $ 3.01 - Gold Payable production (oz) 39,181 - Cash cost ($/payable oz produced) - Co-Product (1) $ 606 - Payable production sold (oz) 23,874 - Average realized sales price ($/oz) (1) $ 1,025 - Molybdenum Mined production (000's lb) (2) 7,887 7,690 Cash cost ($/lb produced) (1) $ 5.75 $ 5.91 Molybdenum sold (000's lb): TC Mine and Endako Mine product 8,591 6,574 Purchased and processed product 1,254 2,240 9,845 8,814 Average realized sales price ($/lb) (1) $ 10.45 $ 11.87 Additional information on the Company's financial position is available in Thompson Creek's Quarterly Report on Form 10-Q for the period ended March 31, 2014, which was filed today on EDGAR (www.sec.gov) and SEDAR (www.sedar.com) and posted on the Company's website (www.thompsoncreekmetals.com). Conference Call and Webcast Thompson Creek will hold a conference call for analysts and investors to discuss its first quarter 2014 financial results on Tuesday, May 13, 2014 at 10:00 am Eastern Time. To participate in the call, please dial 1 (888) 205-6705. A live audio webcast of the conference call will be available at https://www.visualwebcaster.com/event.asp?id=99054 and www.thompsoncreekmetals.com. An archived recording of the conference call will be available at 1 (888) 203-1112 (replay code 3972359) from 1:00 p.m. ET on May 13, 2014 to 11:59 p.m. ET on May 27, 2014. An archived recording of the webcast will also be available at Thompson Creek's website. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, (US dollars in millions, except per share amounts) 2014 2013 REVENUES Copper sales $ 29.8 $ - Gold sales 24.4 - Molybdenum sales 102.9 104.7 Tolling, calcining and other 3.9 4.0 Total revenues 161.0 108.7 COSTS AND EXPENSES Cost of sales Operating expenses 107.8 68.6 Depreciation, depletion and amortization 28.4 12.8 Total cost of sales 136.2 81.4 Selling and marketing 4.1 2.3 Accretion expense 0.9 0.8 General and administrative 6.6 7.1 Exploration 0.1 0.1 Total costs and expenses 147.9 91.7 OPERATING INCOME (LOSS) 13.1 17.0 OTHER (INCOME) EXPENSE (Gains) losses on foreign exchange, net 46.5 19.4 Interest and finance fees 23.6 0.1 Interest income (0.1) (0.2) Other (2.8) - Total other (income) expense 67.2 19.3 Income (loss) before income and mining taxes (54.1) (2.3) Total income and mining tax expense (benefit) (15.0) (3.2) NET INCOME (LOSS) $ (39.1) $ 0.9 COMPREHENSIVE INCOME (LOSS) Foreign currency translation (45.6) (26.1) Total other comprehensive income (loss) (45.6) (26.1) Total comprehensive income (loss) $ (84.7) $ (25.2) NET INCOME (LOSS) PER SHARE Basic $ (0.23) $ 0.01 Diluted $ (0.23) $ - We seek Safe Harbor. © 2014 Canjex Publishing Ltd. 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