Thompson Creek Has Record Molybdenum Production
DENVER, CO - 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.
"During the first quarter of 2010, the Company produced 8.3 million pounds of molybdenum, a quarterly record, and cash cost per pound produced was $5.36 per pound, which was below our guidance of $6 to $7 per pound for the full year. "Reflecting the recovery in the world economy and the steel industry in particular, the Company's average realized price on molybdenum sales for the first quarter of 2010 has risen by 43% from the same quarter a year earlier. A continuation of the economic recovery can be expected to yield a positive trend for molybdenum prices and an improving financial performance for the Company over the medium term," said Kevin Loughrey, Chairman and Chief Executive Officer. The Company's revenues rose by 62% to $127.8 million in the first quarter of 2010 from $78.8 million a year earlier primarily due to a 43% increase in the average realized price for molybdenum products to $14.50 per pound from $10.14 per pound. The Company's mines produced 8.3 million pounds of molybdenum in the first quarter versus 6.1 million pounds in the first quarter of 2009. The Thompson Creek Mine produced 6.3 million pounds, up from 4.4 million pounds a year earlier, while the Company's 75% share of the Endako Mine's production was 2.0 million, up from 1.7 million pounds a year earlier. The weighted-average cash cost per pound produced (including all stripping costs) was $5.36 per pound in the first quarter, down from $5.93 per pound in the first quarter of 2009. At the Thompson Creek Mine, cash cost per pound produced in the first quarter was $4.74 per pound, down from $5.83 per pound a year earlier. The Endako Mine's cash cost per pound produced was $7.26 per pound, compared with $6.17 per pound in the same quarter a year earlier. For 2010, the Company expects its molybdenum production volumes 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 (unchanged from previous guidance). Anticipated average cash costs per pound produced are estimated at $6 to $7 per pound in 2010, with $5.50 to $6.50 per pound at the Thompson Creek Mine and $7 to $8 per pound at the Endako Mine, assuming an exchange rate of US$1 = C$1.05 (unchanged from previous guidance). For the Endako Mine, a $0.01 change in the Canadian foreign exchange rate would result in a change in the cash cost per pound produced of approximately $0.10 per pound. In 2010, Thompson Creek expects to conduct exploration drilling at both of its operating mines totaling $2 to $4 million (unchanged from previous guidance) and to spend approximately $7 to $9 million under the option agreement with U.S. Energy Corporation on the Mount Emmons Project for an ongoing pre-feasibility study, further engineering evaluations, and ongoing project maintenance (unchanged from previous guidance). As previously announced, the Company is also conducting a re-evaluation of the Davidson Project regarding various operating alternatives and related economic analysis. The company's addres is 26 West Dry Creek Circle, Suite 810, Littleton, CO 80120, (303) 761-8801, fax: (303) 761-7420.