Thompson Creek Metals Company Reports Third Quarter 2013 Financial Results

Nov 12, 2013

Denver, CO — Thompson Creek Metals Company Inc. (the “Company” or “Thompson Creek”), a diversified North American mining company, announced today financial results for the three and nine months ended September 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.

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

Operational:

Mt. Milligan commenced the start-up phase in September with initial production of 1,801 tons of copper-gold-silver concentrate.
Molybdenum production from the mines increased 39% to 8.5 million pounds, compared to 6.1 million pounds.
Average cash costs of molybdenum produced decreased 37% to $5.93 per pound, compared to $9.46 per pound.
Total sales of molybdenum increased 47% to 8.3 million pounds, compared to 5.6 million pounds.

Financial:

Operating income was $4.5 million, compared to an operating loss of $37.2 million.
Consolidated revenue increased 21% to $90.8 million, compared to $74.9 million.
Cash flow from operations was $19.5 million, compared to $3.3 million.
Net income totaled $13.8 million, or $0.06 per diluted share, compared to a net loss of $48.2 million, or $0.29 per diluted share.
Non-GAAP adjusted net loss was $7.6 million, or $0.04 per diluted share, compared to a non-GAAP adjusted net loss of $18.4 million, or $0.12 per diluted share.

Jacques Perron, Chief Executive Officer of Thompson Creek, said, “We are pleased to report the start-up at Mt. Milligan in September 2013, which resulted in the initial production of 1.1 million pounds of copper, 1,997 ounces of gold and 7,046 ounces of silver, each in concentrate. We expect to achieve our first sale of concentrate in the fourth quarter of this year. Operational performance has improved at both the Thompson Creek and Endako Mines in the third quarter, with increased production and significantly lower cash costs from a year earlier. With the continued price fluctuations of the commodities we produce, we remain focused on reducing costs throughout the Company, optimizing all of our operations, and strengthening our balance sheet.”

At Thompson Creek Mine, molybdenum production for the third quarter of 2013 was 5.7 million pounds at a cash cost of $4.30 per pound produced, compared to 4.3 million pounds at a cash cost of $7.87 per pound produced for the third quarter of 2012. The improvement in production and cash cost was primarily the result of the planned mine pit sequencing, transitioning into Phase 7 of production in the first half of 2012 and the suspension of waste stripping activity associated with the next phase of production.

At Endako Mine, the Company’s 75% share of molybdenum production for the third quarter of 2013 was 2.8 million pounds at a cash cost of $9.23 per pound produced, compared to 1.8 million pounds at a cash cost of $13.19 per pound produced for the third quarter of 2012. During the third quarter of 2013, the Company obtained higher ore grades and mill recoveries from Endako Mine, primarily as a result of mining fresh ore versus stockpiled material together with optimization work performed by the Endako operations team, which improved production and cash costs per pound produced for the quarter. The Company is currently processing both mined and stockpiled material. While operating results continue to improve at Endako Mine, management expects to continue optimizing production operating activities, undertake additional cost savings and evaluate other measures at Endako in response to molybdenum market conditions.

The Company’s sales of molybdenum for the third quarter of 2013 increased 47% to 8.3 million pounds, at an average realized sales price of $10.30 per pound, compared to 5.6 million pounds, at an average realized sales price of $12.85 per pound, for the third quarter of 2012.