Thompson Creek Metals Company Inc (fka TCPTF)

[Dr. King Schultz]

Thompson Creek Metals Company Achieves Commercial Production at Mt. Milligan and Reports Fourth Quarter and Full Year 2013 Financial Results

www.marketwired.com/press-release/thompson-creek-metals-company-achieves-commercial-production-mt-milligan-reports-fourth-nyse-tc-1881401.htm

DENVER, CO--(Marketwired - Feb 20, 2014) - Thompson Creek Metals Company Inc. (NYSE: TC) (TSX: TCM) (the "Company" or "Thompson Creek"), a diversified North American mining company, announced today that its Mt. Milligan copper and gold mine achieved commercial production on February 18, 2014, which the Company defines as operation of the mill for a period of 30 days at 60% or more of design capacity mill throughput, equivalent to 36,000 tonnes per day.

"Achieving commercial production is a significant milestone for the Company," said Jacques Perron, Chief Executive Officer of Thompson Creek. "We are seeing steady improvements on a daily basis and remain focused on optimizing operating performance at the mine and mill to achieve full design capacity," added Mr. Perron.

The Company also announced financial results for the three months and year ended December 31, 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.

2013 Highlights:

Consolidated revenues for 2013 were $434.4 million compared to $401.4 million in 2012. Copper and gold sales contributed $14.3 million of additional revenue in 2013. Molybdenum sales volumes were 36.5 million pounds in 2013 compared to 28.7 million pounds in 2012. Our average realized sales price for molybdenum in 2013 was $10.97 per pound compared to $13.48 per pound in 2012.

Consolidated operating loss for 2013 was $175.3 million compared to an operating loss of $607.7 million for 2012. Consolidated operating loss for 2013 was impacted by a pre-tax write down of the fixed assets and materials and supplies inventory at the Thompson Creek Mine ("TC Mine") and Endako Mine of $194.9 million and lower-of-cost-or-market product inventory write downs of $51.0 million. Consolidated operating loss for 2012 was impacted by a fixed asset pre-tax write down at Endako Mine of $530.5 million and lower-of-cost-or-market product inventory write downs of $73.8 million.

Net loss for 2013 was $215.0 million, or $1.26 per share compared to a net loss for 2012 of $546.3 million, or $3.24 per share. The net loss for 2013 and 2012 included non-cash foreign exchange losses and gains, respectively of $70.8 million and $12.2 million, primarily on intercompany notes.

Cash generated by operating activities was $44.8 million in 2013 compared to cash used in operating activities of $28.2 million in 2012.

Non-GAAP adjusted net loss for 2013 was $5.0 million, or $0.03 per diluted share compared to a non-GAAP adjusted net loss for 2012 of $44.8 million, or $0.27 per share. Non-GAAP adjusted net income (loss) excludes the non-cash impact of fixed asset and materials and supplies inventory impairment losses, the 2012 goodwill impairment and foreign exchange losses and gains.

Mt. Milligan began the commissioning and start-up phase in the third quarter of 2013. In November 2013, we made our first shipment and sale of concentrate, and in January 2014 we made our second shipment and recorded the sale in February.

Payable production at Mt. Milligan during 2013 was 10.4 million pounds of copper and 20,374 ounces of gold.

Non-GAAP unit cash cost for 2013 was, on a by-product basis, $7.76 per pound, and, on a co-product basis, $5.36 per pound of copper and $1,456 per ounce of gold.

Molybdenum production for 2013 was 29.9 million pounds compared to 22.4 million pounds in 2012.

Non-GAAP average molybdenum cash cost per pound produced for 2013 was $6.49 per pound compared to $10.09 per pound in 2012.

Capital expenditures in 2013 were $428.9 million, comprised of $419.1 million for Mt. Milligan Mine and $9.8 million of other capital costs for Endako Mine, TC Mine, the Langeloth Facility and corporate combined, compared to $771.5 million in 2012.

Total cash and cash equivalents at December 31, 2013 were $233.9 million, compared to $526.8 million at December 31, 2012. Total debt at December 31, 2013 was $1,012.8 million, including capital lease obligations, compared to $1,010.5 million at December 31, 2012.

Jacques Perron, Chief Executive Officer of Thompson Creek, said, "Our most significant achievement in 2013 was the commissioning and start-up of Mt. Milligan Mine. After almost three years of construction, we are proud to have transitioned Mt. Milligan from a development project to a revenue-generating copper and gold operation resulting in payable production for 2013 of 10.4 million pounds of copper and 20,374 ounces of gold. The ramp-up at Mt. Milligan continues to progress with mine pit grades as expected, metal recoveries in the mill above expectations and mill throughput steadily improving. As expected, our financial results were negatively impacted in the fourth quarter of 2013 as a result of Mt. Milligan revenue and costs being reflected in operating income rather than in start-up costs, as required by US GAAP. Additionally, as a result of declining molybdenum prices, we had non-cash asset impairments at both of our molybdenum mines, which significantly impacted our non-cash operating results. We are pleased with our operational achievements at our molybdenum mines as production and costs continued to improve. Molybdenum production for 2013 was 29.9 million pounds, compared to 22.4 million pounds in 2012, and non-GAAP average molybdenum cash cost per pound produced for 2013 was $6.49 per pound, compared to $10.09 per pound in 2012. As we look forward, we will continue to focus on the ramp-up at Mt. Milligan to full design capacity and look to strengthen the Company's longer-term financial profile."

Given declines in molybdenum prices and projected operating costs at TC Mine for 2015 and thereafter, in October 2012, the Company suspended waste stripping activity associated with Phase 8. Since that time, the molybdenum market has continued to weaken and, as a result, management has made the decision to put TC Mine on care and maintenance when the mining and processing of Phase 7 ore is completed, which is expected to be in the fourth quarter of 2014. Management intends to preserve the assets at TC Mine while it is on care and maintenance to enable the Company to re-commence operations when molybdenum market conditions improve. Management will continue to evaluate potential economically viable options for Phase 8.

The decision to place TC Mine on care and maintenance was a triggering event to evaluate for potential long-lived asset impairment. As a result of such evaluation, during the fourth quarter of 2013 the Company recognized a pre-tax, non-cash write down of TC Mine property, plant, equipment assets and materials and supplies inventories of $129.4 million, representing a write down to the assets' estimated fair value as of December 31, 2013.

During the fourth quarter of 2013, the Company revised the proven and probable reserves for both of its molybdenum mines using a $10.00 per pound molybdenum oxide price, which resulted in a significant reduction in reserves at Endako Mine. This revision was a triggering event to evaluate for potential long-lived asset impairment. Such evaluation led the Company to recognize in 2013 an additional pre-tax, non-cash property, plant and equipment and materials and supplies inventory write down of $64.7 million, which represents the Company's 75% share of Endako Mine assets' estimated fair value as of December 31, 2013.

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