Thompson Creek Metals Company Inc (fka TCPTF)

[Tommy]

$TC - Thompson Creek Metals Company Provides Mt. Milligan Update and Reports Solid Second Quarter 2013 Financial Results

http://finance.yahoo.com/news/thompson-creek-metals-company-provides-210000099.html

... "DENVER, CO--(Marketwired - Aug 7, 2013) - Thompson Creek Metals Company Inc. (NYSE: TC) (TSX: TCM) (the "Company" or "Thompson Creek"), a growing, diversified North American mining company, today provided a commissioning update for its Mt. Milligan project and announced financial results for the three and six months ended June 30, 2013, prepared in accordance with United States generally accepted accounting principles ("US GAAP"). All dollar amounts are in United States ("US") dollars unless otherwise indicated. References to C$ refer to Canadian dollars.

Mt. Milligan

Commissioning of all major equipment in the mill is underway and progressing on schedule. The primary crusher and conveyor have been commissioned, the coarse ore stockpile has been bedded, and the mine is positioned to deliver ore to the crusher. A phased start-up of the concentrator is expected to commence early this month, with the first ore feed expected to occur by mid-August and concentrate production expected to commence shortly thereafter. All of the concentrator grinding and flotation circuits are expected to be operational in September.

Kevin Loughrey, the Company's Chairman and Chief Executive Officer, said, "We are extremely pleased to report that the commissioning of the new mill is progressing and that start-up is expected within the next several days. Our employees and contractors have been working diligently to keep the project on schedule for a start-up this month and we are only days away from achieving this major milestone. Once start-up has commenced, we expect commercial production to begin in the fourth quarter of this year, followed by a twelve-month ramp up period to full design production and recovery."

Second Quarter 2013 Highlights (compared to the same period in 2012, unless noted)

Operational:

Molybdenum production from the mines increased 58% to 6.5 million pounds, compared to 4.1 million pounds.
Average cash costs of molybdenum produced decreased 49% to $7.46 per pound, compared to $14.57 per pound.
Total sales of molybdenum increased 29% to 9.7 million pounds, compared to 7.5 million pounds.

Financial:

Operating income was $17.2 million, compared to an operating loss of $18.4 million.
Consolidated revenue was $117.8 million, compared to $113.5 million.
Cash flow from operations was $45.2 million, compared to operating cash used of $20.4 million.

Net loss totaled $19.2 million, or $0.11 per diluted share, compared to a net loss of $14.8 million, or $0.09 per diluted share. Net loss for the second quarter of 2013 included $34.8 million non-cash foreign exchange losses on intercompany notes and an income and mining tax expense of $2.0 million, partially offset by operating income of $17.2 million. Net loss for the second quarter of 2012 included a non-cash foreign exchange loss of $7.9 million and an operating loss of $18.4 million, partially offset by an income and mining tax benefit of $10.8 million.

Non-GAAP adjusted net income was $13.8 million, or $0.08 per diluted share (excluding the non-cash impact of foreign exchange losses, net of tax benefits, primarily related to intercompany notes), compared to a non-GAAP adjusted net loss of $10.6 million, or $0.06 per diluted share (excluding the non-cash impact of foreign exchange losses, net of tax benefits, primarily related to intercompany notes).

"We are pleased to have ended the quarter with continued improvement in operational performance at both the Thompson Creek and Endako Mines, which resulted in increased production and sales, and significantly lower cash costs, compared to the second quarter of 2012," said Mr. Loughrey. "During these volatile times in the commodities markets, we continue to look for ways to reduce costs and improve efficiencies."

At the Thompson Creek Mine, molybdenum production for the second quarter of 2013 increased 74% to 4.4 million pounds at a cash cost of $5.33 per pound produced, compared to 2.5 million pounds at a cash cost of $13.46 per pound produced for the second quarter of 2012. Production for the second quarter of 2013 was favorably impacted by higher grade ore, which resulted in higher recovery and production, and cash costs for the second quarter of 2013 were favorably impacted by the absence of stripping costs related to the next phase of mining. Lower-of-cost-or-market product inventory write downs at the Thompson Creek Mine were nil and $6.6 million during the second quarter of 2013 and 2012, respectively.

At the Endako Mine, in which the Company has a 75% ownership interest, the Company's share of molybdenum production for the second quarter of 2013 increased 34% to 2.1 million pounds at a cash cost of $11.93 per pound produced, compared to 1.6 million pounds at a cash cost of $16.37 per pound produced for the second quarter of 2012. These improvements were primarily the result of the higher ore grades from the mined stockpile material and higher recoveries. Based on its 75% ownership interest, the Company recognized lower-of-cost-or-market product inventory write downs at the Endako Mine of $8.3 million and $10.0 million during the second quarter of 2013 and 2012, respectively.

During the third quarter of 2012, in an effort to reduce costs at the Endako Mine, the Company ceased mining ore from the Denak West pit and has been processing stockpiled material. Approximately one-third of the existing stockpiled material has been milled through mid-2013. The Company resumed mining ore in the Endako pit in May 2013 and in the Denak West pit in June 2013, and is now processing two-thirds of material from fresh ore and one-third from stockpiled material. In part as a result of mining fresh ore, for the month of July throughput averaged 51,000 tons per day and recoveries averaged 75%. Management expects to continue optimizing production at Endako and may undertake additional cost savings and other measures at Endako in response to molybdenum market conditions.

The Company's sales of molybdenum for the second quarter of 2013 increased 29% to 9.7 million pounds, at an average realized sales price of $11.60 per pound, compared to 7.5 million pounds, at an average realized sales price of $14.55 per pound, for the second quarter of 2012." ...