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Thompson Creek Metals Company: Thompson Creek Reports Third Quarter 2015 Cash Balance Of $217 Million And

The following excerpt is from the company's SEC filing.

Non-GAAP Unit Cash Cost on a By-Product Basis of Negative $0.16 per Pound of Copper Produced

Denver, CO – Thompson Creek Metals Company Inc. (NYSE: TC) (TSX: TCM) (the “Company” or “Thompson Creek”), a North American mining company, announced today financial results for the three and nine months ended September 30, 2015, prepared in accordance with United States generally accepted accounting principles (“US GAAP”). All dollar amounts are in United States (“US”) dollars unless otherwise indicated.

Thompson Creek ended the quarter with a strong cash position of $217 million and achieved non-GAAP unit cash cost, on a by-product basis, net of gold credits, of negative $0.16 per pound of copper produced. The Company has lowered its 2015 unit cash cost guidance on a by-product basis from $0.70 - $0.90 to $0.55 - $0.75 per pound of copper produced. Please see “Non-GAAP Financial Measures” below for the definition and reconciliation of non-GAAP cash costs.

During the quarter, the Company completed significant maintenance at the Langeloth facility on time and on budget. The scheduled maintenance, which occurs every few years, allows the Company to continue providing tolling services and to upgrade purchased molybdenum concentrates for sale in the metallurgical and chemical markets. In 2015, the molybdenum business is expected to generate positive cash flow before capital expenditures of approximately $21 to $23 million, net of care and maintenance costs at the Thompson Creek and Endako molybdenum mines, enabling the Company to maintain the optionality of its molybdenum business.

“First and foremost, we once again significantly improved our safety performance from one year ago, which is directly attributable to the hard work and commitment of all of our employees,” said Jacques Perron, President and Chief Executive Officer of Thompson Creek. “We continue to focus on operational improvements at Mount Milligan Mine and our efforts have been rewarded by our excellent unit cash cost performance year-to-date. We are pleased to report that we successfully completed the installation of the second SAG discharge screen deck on October 26, and that the commissioning of the new configuration was completed at the end of October, with both screen decks operating as expected. Since restarting operations following the mill shutdown, we have been experiencing gradual improvements in throughput. Other than the permanent secondary crushing plant, all major modifications required to achieve our objectives have now been successfully completed, and we are confident that throughput will continue to increase through the remainder of the year.”

The Company also announced that it has engaged Moelis & Company and BMO Capital Markets to assist the Board in evaluating strategic and financial alternatives available to the Company, including debt refinancing and restructuring, new capital transactions and asset sales.

Highlights for the Third Quarter

Total cash and cash equivalents

September 30, 2015

were

$217.1 million

, which included $19.0 million in tax refunds received during the quarter, compared to

$265.6 million

at December 31, 2014. Total debt, including capital lease obligations, at

$891.5 million

$944.7 million

generated by

operating activities

$38.5 million

in the third quarter of

compared to cash generated by operating activities of

$83.0 million

Consolidated revenues

for the third quarter of

$141.7 million

$229.3 million

. Copper and gold sales contributed

$113.0 million

in revenue in the third quarter of

$100.7 million

. Molybdenum sales were

$23.0 million

for the third quarter of 2015 compared to

$124.3 million

in the third quarter of 2014. During the third quarter of 2015 we completed five shipments of copper and gold concentrate and recorded five sales compared to three shipments and three sales in the third quarter of 2014.

Payable production

at Mount Milligan Mine for the third quarter of

16.4 million

pounds of copper and

53,791

ounces of gold, compared to payable production of

16.3 million

60,366

ounces of gold for the third quarter of

Sales volumes and average realized sales prices

for copper and gold for the third quarter of

24.4 million

pounds of copper at an average realized price of

per pound and

75,451

ounces of gold at an average realized price of

per ounce, as compared to

16.5 million

57,974

per ounce for the third quarter of

. Molybdenum sales volumes in the third quarter of 2015, which consisted of the sale of molybdenum inventory produced at our mines in 2014 and molybdenum sourced from third parties, were

2.9 million

pounds at an average realized price of

per pound compared to

8.9 million

$13.94

per pound for the third quarter of

Consolidated operating

income

$10.5 million

$63.8 million

. The quarter over quarter decline in operating income was primarily due to a decrease in molybdenum sales, partially offset by an increase in gold sales. Consolidated operating income for the third quarter of 2015 was also impacted by

$3.5 million

of costs related to idle molybdenum mining operations.

$60.9 million

per diluted share, compared to a net

$11.1 million

per diluted share, for the third quarter of

. The net

included primarily unrealized non-cash foreign exchange

losses

$68.8 million

$60.3 million

, respectively, primarily on intercompany notes.

Non-GAAP adjusted net

$5.0 million

per diluted share, compared to non-GAAP adjusted net

for the same period of

$38.3 million

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).

Non-GAAP unit cash cost

per pound of copper produced for the third quarter of

was, on a by-product basis, net of gold credits, negative

per pound and, on a co-product basis,

per pound of copper and

per ounce of gold. Non-GAAP unit cash costs in the third quarter of

per pound and on a co-product basis,

per ounce of gold. See “Non-GAAP Financial Measures” for the definition and reconciliation of non-GAAP cash costs.

Capital expenditures

$24.9 million

, composed of

$21.9 million

for Mount Milligan Mine and

$3.0 million

for the Langeloth Facility, Endako Mine and corporate combined, compared to

Summary of Quarterly Results

(US$ in millions, except per share, per pound and per ounce amounts—unaudited)

Sep 30

Jun 30

Mar 31

Dec 31,

Financial Information

Revenues

Operating income (loss)

Net (loss) income

(135.6

Loss per share:

—basic

—diluted

Cash generated by (used in) operating activities

Adjusted Non-GAAP Measures

Adjusted net (loss) income

Adjusted net (loss) income per share

Operational Statistics

Payable production (000's lb)

16,363

20,159

15,405

18,024

16,267

Cash cost ($/payable lb produced) - By-Product

Cash cost ($/payable lb produced) - Co-Product

Copper sold (000's lb)

24,427

21,195

14,791

15,478

16,482

Average realized sales price ($/lb)

Payable production (oz)

59,917

46,119

40,967

Cash cost ($/payable oz produced) - Co-Product

Gold sold (oz)

57,920

36,750

38,910

Average realized sales price ($/oz)

Mined molybdenum production (000's lb)

Cash cost ($/lb produced)

Molybdenum sold (000's lb):

TC Mine and Endako Mine product

Purchased and processed product

___________________________________________________________

See "Non-GAAP Financial Measures" for the definition and reconciliation of these non-GAAP measures.

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, which may be revised on a prospective basis after sufficient history of payable amounts is determined.

Selected Condensed Consolidated Financial and Operational Information

(US$ in millions, except per share, per pound and per ounce amounts)

Three Months Ended

Nine Months Ended

(unaudited)

Copper sales

Gold sales

Tolling, calcining and other

Total revenues

Costs and expenses

Cost of sales

Operating expenses

Depreciation, depletion and amortization

Total cost of sales

Total costs and expenses

Other expense

(Loss) income before income and mining taxes

(176.4

Income and mining tax benefit

(147.8

Net (loss) income per share

Diluted

Adjusted Non-GAAP Measures:

Adjusted net income (loss)

Adjusted net income (loss) per share—basic

Adjusted net income (loss) per share—diluted

51,927

46,545

60,413

49,214

159,827

136,639

170,121

133,831

Mined production (000's lb)

21,928

Cash cost ($/lb produced)

Molybdenum sold (000's lb):

22,762

28,447

_______________________________________________________________________________

See “Non-GAAP Financial Measures” for the definition and reconciliation of these non-GAAP measures.

Mined production pounds reflected are molybdenum oxide and HPM from our share of production from the mines. (Excludes molybdenum processed from purchased product.)

Updated Guidance

The Company has updated its 2015 guidance as of November 9, 2015, to reflect revisions to the ranges for (i) payable production and cash costs for its copper and gold business; and (ii) care and maintenance and stripping costs and cash flow from operations for its molybdenum business. These ranges have been updated based on actual operational performance and costs through September 30, 2015, and management's expectations for the remainder of 2015.

The table below presents (i) updated guidance for fiscal year 2015 as of November 9, 2015; and (ii) for comparison purposes, the guidance management previously provided in the Company's Form 10-Q for the three months ended June 30, 2015.

Year Ended December 31, 2015

(Estimated) (Updated)

(Estimated) (Previous)

Mount Milligan Mine Copper and Gold

Concentrate production (000's dry tonnes)

140 - 150

140 - 160

Copper payable production (000's lb)

70,000 - 80,000

70,000 - 90,000

Gold payable production (000's oz)

210 - 220

200 - 220

Unit cash cost - By-product ($/payable lb copper produced): (1) (2)

Molybdenum Business - Cash Inflow (Outflow) ($ in millions): (2)(3)

Ongoing molybdenum operations - Langeloth

$6 - $10

Suspended...


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