Microsoft Word - Press Release - Thompson Creek Q1 2016 Financial Results FINAL 05 04 16.docx
news release
May 4, 2016
Thompson Creek Reports First Quarter 2016 Financial Results
Denver, CO - Thompson Creek Metals Company Inc. (TSX: TCM) (OTCQX: TCPTF) (the "Company" or "Thompson Creek"), a North American mining company, announced today financial results for the three months ended March 31, 2016, prepared in accordance with United States generally accepted accounting principles ("US GAAP"). All dollar amounts are in United States ("US") 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% decrease in our unit cash costs on a by- product 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 2016
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Total cash and cash equivalents at March 31, 2016 were $139.1 million, compared to $176.8 million at December 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 to $885.9 million at December 31, 2015.
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Working capital at March 31, 2016 was $168.7 million, compared to $174.7 million at December 31, 2015.
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Cash used in operating activities was $15.7 million in the first quarter of 2016, compared to cash used in operating activities of $5.3 million in the first quarter of 2015.
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Consolidated revenues for the first quarter of 2016 were $97.4 million, compared to $123.0 million in the first quarter of 2015. Copper and gold sales contributed $73.4 million in revenue in the first quarter of
2016, compared to $68.2 million in the first quarter of 2015. Molybdenum sales were $19.6 million for the first quarter of 2016, compared to $42.8 million in the first quarter of 2015. During the first quarter of 2016 we completed three shipments of copper-gold concentrate and recorded three sales, compared to four shipments and three sales in the first quarter of 2015.
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Sales volumes and average realized sales prices for copper and gold for the first quarter of 2016 were
15.0 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 to 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 we sold 3.0 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 we sold 4.3 million pounds of molybdenum, which consisted of inventory produced at our mines in 2014 in addition to third-party sourced product, at an average realized price of $10.00 per pound.
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Consolidated operating income for the first quarter of 2016 was $7.4 million, compared to $5.2 million for the first quarter of 2015.
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Net income for the first quarter of 2016 was $35.1 million, or $0.16 per diluted share, compared to a net loss of $87.2 million, or $0.41 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.
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Non-GAAP adjusted net loss for the first quarter of 2016 was $19.3 million, or $0.09 per diluted share, compared to non-GAAP adjusted net loss for the same period of 2015 of $14.2 million, or $0.07 per diluted share. Non-GAAP adjusted net income (loss) excludes foreign exchange gains and losses, net of related income tax effects. See "Non-GAAP Financial Measures" for the definition and reconciliation of non-GAAP adjusted net income (loss).
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Payable production at Mount Milligan Mine for the first quarter of 2016 was 19.1 million pounds of copper and 53,329 ounces of gold, compared to payable production of 15.4 million pounds of copper and 46,119 ounces of gold for the first quarter of 2015.
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Non-GAAP unit cash cost per pound of copper produced for the first quarter of 2016, on a by-product basis, net of gold credits, was $0.78 per pound and, 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 by-product basis,
$1.12 per pound and on a co-product basis, $1.64 per pound of copper and $498 per ounce of gold. See "Non-GAAP Financial Measures" for the definition and reconciliation of non-GAAP cash costs.
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Capital expenditures for the first quarter of 2016 were $15.6 million, composed of $15.2 million for Mount Milligan Mine and $0.4 million for TC Mine, compared to $13.2 million for the first quarter of 2015.
Summary of Quarterly Results
(US$ in millions, except per share, per pound and per ounce amounts-unaudited)
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Mar 31 Dec 31
2016 2015
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Sep 30 Jun 30,
2015 2015
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Mar 31
2015
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Financial Information
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Revenues
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$ 97.4 $ 95.3
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$ 141.7 $ 134.1
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$ 123.0
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Operating income (loss)
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$ 7.4 $ 3.2
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$ 10.5 $ 12.1
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$ 5.2
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Net income (loss)
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$ 35.1 $ 12.9
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$ (60.9) $ 0.3
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$ (87.2)
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Net income (loss) per share:
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-basic
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$ 0.16 $ 0.06
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$ (0.28) $ 0.00
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$ (0.41)
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-diluted
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$ 0.16 $ 0.06
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$ (0.28) $ 0.00
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$ (0.41)
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Cash (used in) generated by operating activities
Adjusted Non-GAAP Measures (1)
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$ (15.7) $ (19.7)
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$ 38.5 $ 23.9
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$ (5.3)
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Adjusted net (loss) income
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$ (19.3) $ (17.1)
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$ (5.0) $ (13.5)
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$ (14.2)
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Adjusted net (loss) income per share
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-basic
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$ (0.09) $ (0.08)
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$ (0.02) $ (0.06)
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$ (0.07)
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-diluted
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$ (0.09) $ (0.08)
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$ (0.02) $ (0.06)
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$ (0.07)
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Operational Statistics
Copper
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Payable production (000's lb) (2)
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19,062
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19,473
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16,363
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20,159
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15,405
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Cash cost ($/payable lb produced) - By-Product (1)
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$ 0.78
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$ 0.79
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$ (0.16)
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$ 0.48
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$ 1.12
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Cash cost ($/payable lb produced) - Co-Product (1)
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$ 1.41
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$ 1.39
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$ 1.66
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$ 1.55
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$ 1.64
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Copper sold (000's lb)
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14,962
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16,123
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24,427
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21,195
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14,791
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Average realized sales price ($/lb) (1)
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$ 2.17
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$ 1.92
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$ 2.09
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$ 2.63
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$ 2.47
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Gold
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Payable production (oz) (2)
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53,329
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58,254
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53,791
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59,917
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46,119
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Cash cost ($/payable oz produced) - Co-Product (1)
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$ 523
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$ 463
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$ 527
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$ 434
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$ 498
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Gold sold (oz)
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44,391
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51,781
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75,451
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57,920
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36,750
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Average realized sales price ($/oz) (1)
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$ 1,026
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$ 932
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$ 926
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$ 975
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$ 986
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Molybdenum
Molybdenum sold (000's lb):
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TC Mine and Endako Mine product
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-
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244
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592
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576
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2,552
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Purchased and processed product
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3,036
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2,410
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2,342
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1,679
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1,733
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3,036
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2,654
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2,934
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2,255
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4,285
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Average realized sales price ($/lb)
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$ 6.47
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$ 6.39
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$ 7.86
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$ 9.23
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$ 10.00
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(1) See "Non-GAAP Financial Measures" for the definition and reconciliation of these non-GAAP 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 95.0% for copper and 96.5% for gold.
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Selected Condensed Consolidated Financial and Operational Information (US$ in millions, except per share, per pound and per ounce amounts)
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Three Months Ended March 31,
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2016 2015
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(unaudited)
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Financial Information
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Revenues
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Copper sales
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$ 28.1 $ 32.2
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Gold sales
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45.3 36.0
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Molybdenum sales
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19.6 42.8
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Tolling, calcining and other
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4.4 12.0
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Total revenues
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97.4 123.0
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Costs and expenses Cost of sales
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Operating expenses
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57.5 83.0
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Depreciation, depletion and amortization
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19.8 20.0
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Total cost of sales
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77.3 103.0
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Total costs and expenses
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90.0 117.8
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Operating income
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7.4 5.2
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Other (income) expense
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(35.2) 109.1
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Income (loss) before income and mining taxes
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42.6 (103.9)
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Income and mining tax benefit
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7.5 (16.7)
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Net income (loss)
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$ 35.1 $ (87.2)
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Net income (loss) per share Basic
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$ 0.16 $ (0.41)
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Diluted
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$ 0.16 $ (0.41)
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Cash used in operating activities
Adjusted Non-GAAP Measures: (1)
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$ (15.7) $ (5.3)
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Adjusted net (loss) income (1)
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$ (19.3) $ (14.2)
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Adjusted net (loss) income per share-basic (1)
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$ (0.09) $ (0.07)
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Adjusted net (loss) income per share-diluted (1)
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$ (0.09) $ (0.07)
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