DENVER, CO, Aug. 6, 2015 /PRNewswire/ - 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 six months ended
June 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.
"During the second quarter, we made significant progress at
Mount Milligan Mine compared to the first quarter of this year,
including improved throughput, recoveries and unit cash costs,"
said Jacques Perron, President,
Chief Executive Officer and Director of Thompson Creek Metals
Company. "We are particularly proud of our improving safety
performance, which demonstrates the commitment and quality of all
of the members of our team. With ongoing volatility in the
markets, we will continue to prudently manage our balance sheet and
actively pursue company-wide cost reductions."
Mr. Perron continued, "We achieved our highest quarterly average
daily mill throughput to date of 44,940 tonnes in the second
quarter. As a result of several maintenance shutdowns related to
the pebble crushers, primary crusher and ball mills, daily
throughput in July averaged 43,302 tonnes, but following completion
of the necessary maintenance work, daily mill throughput improved
in the latter part of the month and averaged 52,290
between July 26 and August 4. We expect to make
additional operational improvements in the second half of this
year, including the installation of a second SAG discharge screen
deck, which will be instrumental in achieving higher
throughput. We believe these improvements, together with
continued use of secondary crushed material, will help us to
complete the ramp-up of Mount Milligan by year-end."
During the quarter, the Company repurchased and retired
$34 million of its senior secured
notes. Since December of 2014, the Company has repurchased
and retired approximately $68 million
of its outstanding notes with future interest savings from these
repurchases to maturity of approximately $22
million. Mr. Perron said, "These bond repurchases are
consistent with our strategy to reduce our debt and strengthen our
balance sheet. Since the completion of Mount Milligan Mine
through June 30, 2015, we have repaid
and retired approximately $121
million of our debt or 12%, including the net repayments of
our capital lease obligations," added Mr. Perron.
Highlights for the Second Quarter 2015
- Operating results for the second quarter of 2015
compared to the first quarter of 2015 reflect positive trends, as
management targets completion of the Mount Milligan ramp-up by year
end. With our recent improvements in the mine and mill together
with the utilization of the temporary secondary crushing circuit,
during the second quarter of 2015, we achieved our highest
quarterly average daily mill throughput to date of 44,940 tonnes, a
13.6% improvement over the first quarter of 2015. Recoveries for
the second quarter of 2015 steadily increased to 85.5% for copper
and 72.7% for gold. With the higher throughput and improved
recoveries, payable production for both copper and gold increased
by approximately 30% from the first quarter of 2015.
- Financial results for the second quarter of 2015
compared to the first quarter of 2015 also improved with operating
income more than doubled and cash generated by operating activities
more than quadrupled. During the second quarter of 2015, we also
decreased our total debt balance by $41.2
million.
- Total cash and cash equivalents at June 30, 2015
were $211.1 million compared to
$265.6 million at December 31,
2014. Total debt, including capital lease obligations, at
June 30, 2015 was $897.6
million, compared to $944.7
million at December 31, 2014. During the second quarter
of 2015, we repurchased and retired $34.2
million of the 9.75% senior secured notes due 2017.
- Cash generated by operating activities was $23.9 million in the second quarter of 2015
compared to cash generated by operating activities of $50.7 million in the second quarter of 2014.
- Consolidated revenues for the second quarter of 2015
were $134.1 million compared to
$248.4 million in the second quarter
of 2014. Copper and gold sales contributed $105.6 million in revenue in the second quarter
of 2015 compared to $118.9 million in
the second quarter of 2014. Molybdenum sales for the second quarter
of 2015 were $20.9 million compared
to $126.3 million in the second
quarter of 2014. During each of the second quarters of 2015 and
2014, we completed three shipments of copper and gold concentrate
and recorded four sales.
- Payable production at Mount Milligan Mine for the second
quarter of 2015 was 20.2 million pounds of copper and 59,917 ounces
of gold, compared to payable production of 16.0 million pounds of
copper and 37,030 ounces of gold for the second quarter of
2014.
- Sales volumes and average realized sales prices for
copper and gold for the second quarter of 2015 were 21.2 million
pounds of copper at an average realized price of $2.63 per pound and 57,920 ounces of gold at an
average realized price of $975 per
ounce, as compared to 21.9 million pounds of copper at an average
realized price of $3.20 per pound and
51,983 ounces of gold at an average realized price of $1,047 per ounce for the second quarter of 2014.
Molybdenum sales volumes in the second quarter of 2015, which
consisted of the sale of molybdenum inventory produced at our mines
in 2014 and molybdenum sourced from third parties, were 2.3 million
pounds at an average realized price of $9.23 per pound compared to 9.7 million pounds at
an average realized price of $13.03
per pound for the second quarter of 2014.
- Consolidated operating income for the second quarter of
2015 was $12.1 million compared to
$57.3 million for the second quarter
of 2014. Consolidated operating income for the second quarters of
2015 and 2014 was impacted by non-cash lower-of-cost-or-market
molybdenum product inventory write downs of $1.9 million and $1.2
million, respectively. Consolidated operating income for the
second quarter of 2015 was also impacted by $12.1 million of costs related to idle molybdenum
mining operations, including our share of severance costs at Endako
Mine of $6.7 million.
- Net income for the second quarter of 2015 was
$0.3 million, or nil per diluted
share, compared to net income of $61.6
million, or $0.28 per diluted
share, for the second quarter of 2014. The net income for the
second quarter of 2015 and 2014 included non-cash foreign exchange
gains of $16.9 million and
$42.3 million, respectively,
primarily on intercompany notes.
- Non-GAAP adjusted net loss for the second quarter of
2015 was $13.5 million, or
$0.06 per diluted share, compared to
non-GAAP adjusted net income for the same period of 2014 of
$22.0 million, or $0.10 per 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 second quarter of 2015 was, on a by-product basis, $0.48 per pound and, on a co-product basis,
$1.55 per pound of copper and
$434 per ounce of gold. Non-GAAP unit
cash costs in the second quarter of 2014 was, on a by-product
basis, $0.33 per pound and on a
co-product basis, $1.97 per pound of
copper and $538 per ounce of gold.
See "Non-GAAP Financial Measures" for the definition and
reconciliation of non-GAAP cash costs.
- Capital expenditures for the second quarter of 2015 were
$9.7 million, composed of
$9.1 million for Mount Milligan Mine
and $0.6 million for the Langeloth
Facility, Endako Mine and corporate combined, compared to
$26.7 million for the second quarter
of 2014.
Summary of Quarterly Results
(US$ in millions,
except per share, per pound and per ounce
amounts—unaudited)
|
|
Jun
30
2015
|
|
Mar 31
2015
|
|
Dec 31
2014
|
|
Sep 30
2014
|
|
Jun
30
2014
|
|
|
Financial
Information
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
134.1
|
|
|
$
|
123.0
|
|
|
$
|
168.0
|
|
|
$
|
229.3
|
|
|
$
|
248.4
|
|
|
Operating income
(loss)
|
|
$
|
12.1
|
|
|
$
|
5.2
|
|
|
$
|
(98.1)
|
|
|
$
|
63.8
|
|
|
$
|
57.3
|
|
|
Net income
(loss)
|
|
$
|
0.3
|
|
|
$
|
(87.2)
|
|
|
$
|
(135.6)
|
|
|
$
|
(11.1)
|
|
|
$
|
61.6
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
—basic
|
|
$
|
0.00
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.63)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.35
|
|
|
—diluted
|
|
$
|
0.00
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.63)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.28
|
|
|
Cash generated by
(used in) operating activities
|
|
$
|
23.9
|
|
|
$
|
(5.3)
|
|
|
$
|
34.9
|
|
|
$
|
83.0
|
|
|
$
|
50.7
|
|
|
Adjusted Non-GAAP
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss)
|
|
$
|
(13.5)
|
|
|
$
|
(14.2)
|
|
|
$
|
(10.0)
|
|
|
$
|
38.3
|
|
|
$
|
22.0
|
|
|
Adjusted net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
—basic
|
|
$
|
(0.06)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
—diluted
|
|
$
|
(0.06)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.17
|
|
|
$
|
0.10
|
|
|
Operational
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
|
|
|
|
Payable production
(000's lb) (2)
|
|
20,159
|
|
|
15,405
|
|
|
18,024
|
|
|
16,267
|
|
|
16,035
|
|
|
Cash cost ($/payable
lb produced) - By-Product (1)
|
|
$
|
0.48
|
|
|
$
|
1.12
|
|
|
$
|
1.16
|
|
|
$
|
0.77
|
|
|
$
|
0.33
|
|
|
Cash cost ($/payable
lb produced) - Co-Product (1)
|
|
$
|
1.55
|
|
|
$
|
1.64
|
|
|
$
|
1.88
|
|
|
$
|
1.80
|
|
|
$
|
1.97
|
|
|
Copper sold (000's
lb)
|
|
21,195
|
|
|
14,791
|
|
|
15,478
|
|
|
16,482
|
|
|
21,939
|
|
|
Average realized
sales price ($/lb) (1)
|
|
$
|
2.63
|
|
|
$
|
2.47
|
|
|
$
|
2.75
|
|
|
$
|
3.02
|
|
|
$
|
3.20
|
|
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
Payable production
(oz) (2)
|
|
59,917
|
|
|
46,119
|
|
|
40,967
|
|
|
60,366
|
|
|
37,030
|
|
|
Cash cost ($/payable
oz produced) - Co-Product (1)
|
|
$
|
434
|
|
|
$
|
498
|
|
|
$
|
506
|
|
|
$
|
477
|
|
|
$
|
538
|
|
|
Gold sold
(oz)
|
|
57,920
|
|
|
36,750
|
|
|
38,910
|
|
|
57,974
|
|
|
51,983
|
|
|
Average realized
sales price ($/oz) (1)
|
|
$
|
975
|
|
|
$
|
986
|
|
|
$
|
1,003
|
|
|
$
|
952
|
|
|
$
|
1,047
|
|
|
Molybdenum
|
|
|
|
|
|
|
|
|
|
|
|
Mined molybdenum
production (000's lb)
|
|
—
|
|
|
—
|
|
|
4,328
|
|
|
6,560
|
|
|
7,481
|
|
|
Cash cost ($/lb
produced) (1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.34
|
|
|
$
|
6.77
|
|
|
$
|
6.25
|
|
|
Molybdenum sold
(000's lb):
|
|
|
|
|
|
|
|
|
|
|
|
|
TC Mine and Endako
Mine product
|
|
576
|
|
|
2,552
|
|
|
5,756
|
|
|
6,732
|
|
|
7,439
|
|
|
|
Purchased and
processed product
|
|
1,679
|
|
|
1,733
|
|
|
2,376
|
|
|
2,181
|
|
|
2,250
|
|
|
|
2,255
|
|
|
4,285
|
|
|
8,132
|
|
|
8,913
|
|
|
9,689
|
|
|
Average realized
sales price ($/lb) (1)
|
|
$
|
9.23
|
|
|
$
|
10.00
|
|
|
$
|
10.79
|
|
|
$
|
13.94
|
|
|
$
|
13.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________________________________
|
|
(1)
|
See "Non-GAAP
Financial Measures" for the definition and reconciliation of these
non-GAAP measures.
|
|
(2)
|
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
|
|
Six Months
Ended
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Financial
Information
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Copper
sales
|
|
$
|
49.3
|
|
|
$
|
64.8
|
|
|
$
|
81.5
|
|
|
$
|
94.6
|
|
|
Gold sales
|
|
56.3
|
|
|
54.1
|
|
|
92.3
|
|
|
78.5
|
|
|
Molybdenum
sales
|
|
20.9
|
|
|
126.3
|
|
|
63.7
|
|
|
229.2
|
|
|
Tolling, calcining
and other
|
|
7.6
|
|
|
3.2
|
|
|
19.6
|
|
|
7.1
|
|
|
|
Total
revenues
|
|
134.1
|
|
|
248.4
|
|
|
257.1
|
|
|
409.4
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
75.3
|
|
|
148.2
|
|
|
158.3
|
|
|
261.8
|
|
|
|
Depreciation,
depletion and amortization
|
|
26.8
|
|
|
33.0
|
|
|
46.8
|
|
|
55.6
|
|
|
Total cost of
sales
|
|
102.1
|
|
|
181.2
|
|
|
205.1
|
|
|
317.4
|
|
|
Total costs and
expenses
|
|
122.0
|
|
|
191.1
|
|
|
239.8
|
|
|
339.0
|
|
|
Operating income
(loss)
|
12.1
|
|
57.3
|
|
17.3
|
|
70.4
|
|
|
Other (income)
expense
|
|
6.7
|
|
|
(18.8)
|
|
|
115.8
|
|
|
48.4
|
|
|
Income (loss) before
income and mining taxes
|
5.4
|
|
76.1
|
|
(98.5)
|
|
22.0
|
|
|
Income and mining tax
(benefit) expense
|
|
5.1
|
|
|
14.5
|
|
|
(11.6)
|
|
|
(0.5)
|
|
|
Net income
(loss)
|
|
$
|
0.3
|
|
|
$
|
61.6
|
|
|
$
|
(86.9)
|
|
|
$
|
22.5
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
|
$
|
0.35
|
|
|
$
|
(0.40)
|
|
|
$
|
0.13
|
|
|
Diluted
|
|
$
|
0.00
|
|
|
$
|
0.28
|
|
|
$
|
(0.40)
|
|
|
$
|
0.10
|
|
|
Cash generated by
(used in) operating activities
|
|
$
|
23.9
|
|
|
$
|
50.7
|
|
|
$
|
18.6
|
|
|
$
|
66.9
|
|
|
Adjusted Non-GAAP
Measures: (1)
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) (1)
|
|
$
|
(13.5)
|
|
|
$
|
22.0
|
|
|
$
|
(27.7)
|
|
|
$
|
26.3
|
|
|
Adjusted net income
(loss) per share—basic (1)
|
|
$
|
(0.06)
|
|
|
$
|
0.13
|
|
|
$
|
(0.13)
|
|
|
$
|
0.15
|
|
|
Adjusted net income
(loss) per share—diluted (1)
|
|
$
|
(0.06)
|
|
|
$
|
0.10
|
|
|
$
|
(0.13)
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Operational
Statistics
|
|
|
|
|
|
|
|
|
|
Copper
|
|
|
|
|
|
|
|
|
|
Payable production
(000's lb) (2)
|
|
20,159
|
|
|
16,035
|
|
|
35,564
|
|
|
30,278
|
|
|
Cash cost ($/payable
lb produced) - By-Product (1)
|
|
$
|
0.48
|
|
|
$
|
0.33
|
|
|
$
|
0.75
|
|
|
$
|
1.34
|
|
|
Cash cost ($/payable
lb produced) - Co-Product (1)
|
|
1.55
|
|
|
$
|
1.97
|
|
|
$
|
1.59
|
|
|
$
|
2.11
|
|
|
Copper sold (000's
lb)
|
|
21,195
|
|
|
21,939
|
|
|
35,986
|
|
|
32,732
|
|
|
Average realized
sales price ($/lb) (1)
|
|
$
|
2.63
|
|
|
$
|
3.20
|
|
|
$
|
2.56
|
|
|
$
|
3.14
|
|
|
Gold
|
|
|
|
|
|
|
|
|
|
Payable production
(oz)
|
|
59,917
|
|
|
37,030
|
|
|
106,036
|
|
|
76,273
|
|
|
Cash cost ($/payable
oz produced) - Co-Product (1)
|
|
$
|
434
|
|
|
$
|
538
|
|
|
$
|
462
|
|
|
$
|
573
|
|
|
Gold sold
(oz)
|
|
57,920
|
|
|
51,983
|
|
|
94,670
|
|
|
75,857
|
|
|
Average realized
sales price ($/oz) (1)
|
|
$
|
975
|
|
|
$
|
1,047
|
|
|
$
|
979
|
|
|
$
|
1,040
|
|
|
Molybdenum
|
|
|
|
|
|
|
|
|
|
Mined production
(000's lb) (3)
|
|
—
|
|
|
7,481
|
|
|
—
|
|
|
15,368
|
|
|
Cash cost ($/lb
produced) (1)
|
|
$
|
—
|
|
|
$
|
6.25
|
|
|
$
|
—
|
|
|
$
|
5.99
|
|
|
Molybdenum sold
(000's lb):
|
|
|
|
|
|
|
|
|
|
|
TC Mine and Endako
Mine product
|
|
576
|
|
|
7,439
|
|
|
3,128
|
|
|
16,030
|
|
|
|
Purchased and
processed product
|
|
1,679
|
|
|
2,250
|
|
|
3,412
|
|
|
3,504
|
|
|
|
2,255
|
|
|
9,689
|
|
|
6,540
|
|
|
19,534
|
|
|
Average realized
sales price ($/lb) (1)
|
|
$
|
9.23
|
|
|
$
|
13.03
|
|
|
$
|
9.73
|
|
|
$
|
11.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________________________________________
|
|
(1)
|
See "Non-GAAP
Financial Measures" for the definition and reconciliation of these
non-GAAP measures.
|
|
(2)
|
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.
|
|
(3)
|
Mined production
pounds reflected are molybdenum oxide and HPM from our share of
production from the mines (excludes molybdenum processed from
purchased product).
|
Current Guidance
The Company updated its 2015 guidance as of the date
of this report to reflect (i) certain changes to its
molybdenum business guidance as a result of expected decreases in
cash flow from Langeloth, expected increases in the proportion of
sales of upgraded products from its molybdenum mines, the
placement of Endako Mine on care and maintenance, effective
July 1, 2015 (in connection with
which the Company incurred its share of
one-time severance costs), and the decision to cease
stripping at Thompson Creek Mine, effective August 6, 2015; and (ii) the addition of capital
expenditures for 2015 relating to a settlement of vendor claims in
connection with the construction of Mount Milligan. There are no
revisions to the production and cash cost guidance for Mount
Milligan Mine as of the date of this report.
The table below presents (i) updated guidance for fiscal year
2015 as of the date of this report and (ii) for comparison
purposes, the guidance previously provided in the
Company's Form 10-Q for the three months ended March 31, 2015.
|
|
Year Ended
December 31, 2015
(Estimated)
(Updated)
|
|
Year Ended
December 31, 2015
(Estimated)
(Previous)
|
|
Mount Milligan
Mine Copper and Gold
|
|
|
|
|
|
Concentrate
production (000's dry tonnes)
|
|
140 - 160
|
|
140 - 160
|
|
Copper payable
production (000's lb)
|
|
70,000 -
90,000
|
|
70,000 -
90,000
|
|
Gold payable
production (000's oz)
|
|
200 - 220
|
|
200 - 220
|
|
Unit cash cost -
By-product ($/payable lb copper produced): (1)
(2)
|
|
$0.70 -
$0.90
|
|
$0.70 -
$0.90
|
|
Molybdenum
Business - Cash Inflow (Outflow) ($ in millions):
(2)(3)
|
|
|
|
|
|
|
Ongoing molybdenum
operations - Langeloth
|
|
$6 - $10
|
|
$10 - $15
|
|
|
Suspended molybdenum
operations:
|
|
|
|
|
|
|
|
TC Mine
|
|
|
|
|
|
|
|
|
Care and
Maintenance
|
|
($7 - $10)
|
|
($6 - $8)
|
|
|
|
|
Phase 8
Stripping
|
|
($4 - $5)
|
|
($8 - $10)
|
|
|
|
|
Sale of
Inventory
|
|
$32 - $34
|
|
$25 - $28
|
|
|
|
Endako Mine (75%
share)
|
|
|
|
|
|
|
|
|
Temporary suspension,
care and maintenance and severance costs
|
|
($17 -
$19)
|
|
($5 - $8)
|
|
|
|
|
Sale of
inventory
|
|
$10 - $11
|
|
$9 - $10
|
|
|
Total Cash Flow from
Molybdenum Operations
|
|
$20 - $21
|
|
$25 - $27
|
|
Capital
expenditures ($ in millions): (2)(4)
|
|
|
|
|
|
Mount Milligan
operations
|
|
$22 ± 10%
|
|
$22 ± 10%
|
|
Mount Milligan
tailings dam
|
|
$24 ± 10%
|
|
$24 ± 10%
|
|
Mount Milligan
secondary crusher engineering and site preparation
|
|
$15 ± 10%
|
|
$15 ± 10%
|
|
Mount Milligan vendor
claims settlement (5)
|
|
$13
|
|
nil
|
|
Langeloth and
other
|
|
$7 ± 10%
|
|
$7 ± 10%
|
|
Total capital
expenditures
|
|
$81 ± 10%
|
|
$68 ± 10%
|
|
______________________________________________________________
|
|
(1)
|
Copper by-product
unit cash cost is calculated using copper payable production and
deducts a gold by-product credit, which is determined based on
expected revenue from payable gold production assuming a gold price
of $801 per ounce for the first half of 2015 and approximately $730
per ounce for the second half of 2015, which takes into account the
contractual price of $435 per ounce under the Gold Stream
Arrangement.
|
|
(2)
|
Estimates for cash
costs, molybdenum cash inflow (outflow) and cash capital
expenditures assume an average foreign exchange rate of US$1.00 =
C$1.24 for the first half of 2015 and US$1.00 = C$1.25 for the
second half of 2015.
|
|
(3)
|
Cash inflow (outflow)
excludes capital expenditures.
|
|
(4)
|
Includes 2015 cash
capital expenditures, but excludes cash capital expenditures
related to 2014 accruals paid in 2015.
|
|
(5)
|
In July 2015, Terrane
Metals Corp., a wholly-owned subsidiary of the Company ("Terrane"),
settled outstanding claims from two contractors that provided
construction and installation services for the construction of
Mount Milligan. The settlement amount, which represents a one-time
payment, will be made in the third quarter of
2015.
|
Non-GAAP Financial Measures
In addition to the condensed consolidated financial statements
presented in accordance with US GAAP, management uses certain
non-GAAP financial measures to assess its operating performance for
the reasons described further below. These measures do not have
standard meanings prescribed by US GAAP and may not be
comparable to similar measures presented by other companies. The
presentation of these measures is not intended to be considered in
isolation from, as a substitute for, or as superior to, the
financial information prepared and presented in accordance with
US GAAP. In addition, these non-GAAP measures have limitations
in that they do not reflect all of the amounts associated with the
results of operations as determined in accordance with
US GAAP.
Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per
Share—Basic and Diluted
Management of the Company uses adjusted net income (loss) and
adjusted net income (loss) per share—basic and diluted to evaluate
the Company's operating performance and for planning and
forecasting future business operations. The Company believes the
use of these measures allows investors and analysts to compare
results of the continuing operations of the Company to similar
operating results of other mining companies, by excluding unusual
or infrequent items that are considered non-core to our
business.
Adjusted net income (loss) represents the income (loss) prepared
in accordance with US GAAP, adjusted for significant non-cash
items.
For the first half of 2015 and 2014, the significant items were
the net gains and losses related to the impact of foreign exchange
due primarily to intercompany notes and related tax effects. For
the five quarters ended June 30,
2015, the significant items were the net gains and losses
related to the impact of foreign exchange due primarily to
intercompany notes and related tax effects and impairments on our
property, plant and equipment and materials and supplies
inventory.
In connection with the Company's strategy to manage cash
balances, fund its operations and provide future tax benefits, the
Company may enter into intercompany loan arrangements. At times,
the loans are denominated in currencies other than the measurement
currency of one of the parties. US GAAP requires that notes that
are intended to be repaid should not be considered a capital
contribution, and, therefore, the foreign exchange fluctuations
related to these loans impact net income (loss) each period. At
each period end, management compares the exchange rate between the
Canadian and US dollars to the exchange rate at the end of the
prior reporting period. The difference between those rates is
recorded as an unrealized gain or loss on the Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss). Settlement of these intercompany loans results in realized
foreign exchange gains or losses recorded on the Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss). As the loans between the parent company and its
subsidiaries are the primary driver of the Company's foreign
exchange gains and losses, as discussed above, management does not
consider gains or losses on foreign exchange in its evaluation of
our financial performance. Management believes that presentation of
our non-GAAP measures excluding these gains or losses provides
useful information to our investors regarding the Company's
financial condition and results of operations.
Adjusted net income (loss) per share (basic and diluted) is
calculated using adjusted net income (loss), as defined above,
divided by the weighted-average basic and weighted-average diluted
shares outstanding during the period as determined in accordance
with US GAAP. If the adjustments to net (loss) on a US GAAP
basis result in non-GAAP adjusted net income, management calculates
weighted-average diluted shares outstanding in accordance with US
GAAP and use that to calculate adjusted net income per
share—diluted. If the adjustments to net income on a US GAAP basis
result in non-GAAP adjusted net (loss), the Company utilizes
weighted-average basic shares outstanding to calculate adjusted net
income per share—diluted, in accordance with US GAAP.
The following tables reconcile net income (loss) presented in
accordance with US GAAP to the non-GAAP financial measures of
adjusted net income (loss) and adjusted net income (loss) per
share—basic and diluted, for the three and six months ended
June 30, 2015 and 2014 and for the five quarters ended
June 30, 2015. All figures
within the tables are unaudited and are presented in US$ in
millions, except shares and per share amounts.
Non-GAAP Reconciliation
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2015
|
|
June 30,
2014
|
|
June 30,
2015
|
|
June 30,
2014
|
|
Net income
(loss)
|
$
|
0.3
|
|
|
$
|
61.6
|
|
|
$
|
(86.9)
|
|
|
$
|
22.5
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
(Gain) loss on
foreign exchange (1)
|
(17.2)
|
|
|
(41.9)
|
|
|
72.6
|
|
|
4.2
|
|
|
Tax expense (benefit)
on foreign exchange (gain) loss
|
3.4
|
|
|
2.3
|
|
|
(13.4)
|
|
|
(0.4)
|
|
|
Non-GAAP adjusted net
income (loss)
|
$
|
(13.5)
|
|
|
$
|
22.0
|
|
|
$
|
(27.7)
|
|
|
$
|
26.3
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.00
|
|
|
$
|
0.35
|
|
|
$
|
(0.40)
|
|
|
$
|
0.13
|
|
|
Diluted
|
$
|
0.00
|
|
|
$
|
0.28
|
|
|
$
|
(0.40)
|
|
|
$
|
0.10
|
|
|
Adjusted net income
(loss) per share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.06)
|
|
|
$
|
0.13
|
|
|
$
|
(0.13)
|
|
|
$
|
0.15
|
|
|
Diluted
|
$
|
(0.06)
|
|
|
$
|
0.10
|
|
|
$
|
(0.13)
|
|
|
$
|
0.12
|
|
|
Weighted-average
shares
|
|
|
|
|
|
|
|
|
Basic
|
218.0
|
|
|
174.5
|
|
|
216.2
|
|
|
173.1
|
|
|
Diluted
|
218.0
|
|
|
220.3
|
|
|
216.2
|
|
|
217.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Included a foreign
exchange gain of $0.3 million and a foreign exchange loss of $1.3
million presented in income and mining tax expense (benefit) on the
Condensed Consolidated Statements of Operations for the three and
six months ended June 30, 2015, respectively. Included $0.4
million and nil of foreign exchange loss presented in income and
mining tax expense (benefit) on the Condensed Consolidated
Statements of Operations for the three and six months ended
June 30, 2014, respectively.
|
|
Three Months
Ended
|
|
Jun 30
2015
|
|
Mar 31
2015
|
|
Dec
31
2014
|
|
Sep
30
2014
|
|
Jun
30
2014
|
|
|
Net income
(loss)
|
$
|
0.3
|
|
|
$
|
(87.2)
|
|
|
$
|
(135.6)
|
|
|
$
|
(11.1)
|
|
|
$
|
61.6
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
Asset
impairments
|
—
|
|
|
—
|
|
|
104.8
|
|
|
—
|
|
|
—
|
|
|
Tax benefit of asset
impairments (1)
|
—
|
|
|
—
|
|
|
(7.0)
|
|
|
—
|
|
|
—
|
|
|
(Gain) loss on
foreign exchange (2)
|
(17.2)
|
|
|
89.8
|
|
|
34.8
|
|
|
59.7
|
|
|
(41.9)
|
|
|
Tax expense (benefit)
on foreign exchange (gain) loss
|
3.4
|
|
|
(16.8)
|
|
|
(7.0)
|
|
|
(10.3)
|
|
|
2.3
|
|
|
Non-GAAP adjusted net
income (loss)
|
$
|
(13.5)
|
|
|
$
|
(14.2)
|
|
|
$
|
(10.0)
|
|
|
$
|
38.3
|
|
|
$
|
22.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.00
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.63)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.35
|
|
|
Diluted
|
$
|
0.00
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.63)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.28
|
|
|
Adjusted net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.06)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
Diluted
|
$
|
(0.06)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.05)
|
|
|
$
|
0.17
|
|
|
$
|
0.10
|
|
|
Weighted-average
shares
|
|
|
|
|
|
|
|
|
|
|
Basic
|
218.0
|
|
|
214.4
|
|
|
214.1
|
|
|
213.9
|
|
|
174.5
|
|
|
Diluted
|
218.0
|
|
|
214.4
|
|
|
214.1
|
|
|
220.4
|
|
|
220.3
|
|
|
____________________________________________________________
|
|
(1)
|
The asset impairment
for Endako Mine and TC Mine in 2014 did not have a net tax impact
due to offsetting valuation allowance movement; therefore, the
non-GAAP adjusted net income (loss) presentation excluded this tax
effect.
|
|
(2)
|
Included a foreign
exchange gain of $0.3 million; a foreign exchange loss of $1.6
million, foreign exchange gains of $0.5 million and $0.6 million,
and a foreign exchange gain of $0.4 million, presented in income
and mining tax expense (benefit) in the Condensed Consolidated
Statements of Operations for the three months ended June 30, 2015,
March 31, 2015, December 31, 2014, September 30, 2014, and
June 30, 2014, respectively.
|
Copper-Gold Operations - Unit Cash Cost and Average
Realized Price per Payable Pound or Payable Ounce Sold
Unit cash cost on a by-product and co-product basis are
considered key measures in evaluating operating performance in the
Company's Copper-Gold operations, as well as measures of
profitability and efficiency on a consolidated basis. Although,
unit cash cost on a by-product and co-product basis are not
measures of financial performance, do not have standardized meaning
prescribed by US GAAP and may not be comparable to similar
measures presented by other companies, management believes these
non-GAAP measures provide useful supplemental information to
investors.
Unit cash cost on a by-product and co-product basis represent
the mining, milling, on-site general and administration, truck and
rail transportation, warehousing, refining and treatment, and ocean
freight and insurance costs; and exclude the effects of changes in
inventory; non-cash corporate allocations; other non-cash employee
benefits, such as stock-based compensation; depreciation,
depletion, amortization and accretion.
On a by-product basis, sales of by-product metals are deducted
when computing cash costs in accordance with the cash cost standard
endorsed by the World Gold Council and, previously, the Gold
Institute. On a co-product basis, cash costs are allocated between
copper and gold based on production. Copper production is stated in
thousands of pounds. Gold production has been converted to
thousands of copper equivalent (Cu eq.) pounds using the gold
production for the periods presented, as well as the most recent
quarterly average prices for copper and gold. The price used for
copper is the most recent quarterly average of the Metals Bulletin
Daily published price for LME settlement per tonne. The price used
for gold is a weighted average of the most recent quarterly average
of the Metals Bulletin Daily published prices for daily average
London price per ounce adjusted
for the fixed price established under the Gold Stream Arrangement
($435 per oz).
The following tables provide a reconciliation of cash costs,
unit cash costs, and operating expenses for Copper-Gold operations
included in our Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss) in the determination of net income
(loss) for the three and six months ended June 30, 2015 and 2014 and for the five quarters
ended June 30, 2015.
Non-GAAP cash cost
|
Three Months
Ended
|
|
Six Months
Ended
|
|
(US$ in
millions)
|
Jun 30
2015
|
|
Jun 30
2014
|
|
Jun 30
2015
|
|
Jun 30
2014
|
|
Direct mining
costs(1)
|
$
|
45.0
|
|
|
$
|
39.8
|
|
|
$
|
82.4
|
|
|
$
|
89.4
|
|
|
Truck and rail
transportation and warehousing costs
|
3.8
|
|
|
4.6
|
|
|
8.2
|
|
|
6.2
|
|
|
Costs reflected in
inventory and operations costs
|
$
|
48.8
|
|
|
$
|
44.4
|
|
|
$
|
90.6
|
|
|
$
|
95.6
|
|
|
Refining and
treatment costs
|
6.6
|
|
|
5.7
|
|
|
11.1
|
|
|
8.5
|
|
|
Ocean freight and
insurance costs
|
1.8
|
|
|
1.5
|
|
|
3.8
|
|
|
3.5
|
|
|
Direct costs
reflected in revenue and selling and marketing costs
|
$
|
8.4
|
|
|
$
|
7.2
|
|
|
$
|
14.9
|
|
|
$
|
12.0
|
|
|
Non-GAAP cash
costs
|
$
|
57.2
|
|
|
$
|
51.6
|
|
|
$
|
105.5
|
|
|
$
|
107.6
|
|
|
Reconciliation to
amounts reported (US$ in millions)
|
|
|
|
|
|
|
|
|
Direct
costs
|
$
|
(8.4)
|
|
|
$
|
(7.2)
|
|
|
$
|
(14.9)
|
|
|
$
|
(12.0)
|
|
|
Changes in
inventory
|
1.8
|
|
|
26.6
|
|
|
(5.2)
|
|
|
18.6
|
|
|
Silver by-product
credits (2)
|
(1.2)
|
|
|
(1.6)
|
|
|
(2.4)
|
|
|
(2.3)
|
|
|
Non cash costs and
other
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
|
Copper-Gold
segment US GAAP operating expenses
|
$
|
49.6
|
|
|
$
|
69.7
|
|
|
$
|
83.4
|
|
|
$
|
112.5
|
|
|
Three Months
Ended
|
|
(US$ in
millions)
|
Jun 30
2015
|
|
Mar 31
2015
|
|
Dec
31
2014
|
|
Sep
30
2014
|
|
Jun
30
2014
|
|
Direct mining
costs(1)
|
$
|
45.0
|
|
|
$
|
37.4
|
|
|
$
|
45.2
|
|
|
$
|
48.8
|
|
|
$
|
39.8
|
|
|
Truck and rail
transportation and warehousing costs
|
3.8
|
|
|
4.4
|
|
|
3.3
|
|
|
3.8
|
|
|
4.6
|
|
|
Costs reflected in
inventory and operations costs
|
$
|
48.8
|
|
|
$
|
41.8
|
|
|
$
|
48.5
|
|
|
$
|
52.6
|
|
|
$
|
44.4
|
|
|
Refining and
treatment costs
|
6.6
|
|
|
4.5
|
|
|
4.6
|
|
|
4.4
|
|
|
5.7
|
|
|
Ocean freight and
insurance costs
|
1.8
|
|
|
2.0
|
|
|
1.5
|
|
|
1.1
|
|
|
1.5
|
|
|
Direct costs
reflected in revenue and selling and marketing costs
|
$
|
8.4
|
|
|
$
|
6.5
|
|
|
$
|
6.1
|
|
|
$
|
5.5
|
|
|
$
|
7.2
|
|
|
Non-GAAP cash
costs
|
$
|
57.2
|
|
|
$
|
48.3
|
|
|
$
|
54.6
|
|
|
$
|
58.1
|
|
|
$
|
51.6
|
|
|
Reconciliation to
amounts reported (US$ in millions)
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
$
|
(8.4)
|
|
|
$
|
(6.5)
|
|
|
$
|
(6.1)
|
|
|
$
|
(5.5)
|
|
|
$
|
(7.2)
|
|
|
Changes in
inventory
|
1.8
|
|
|
(7.0)
|
|
|
(6.2)
|
|
|
(4.5)
|
|
|
25.0
|
|
|
Silver by-product
credits (2)
|
(1.2)
|
|
|
(1.2)
|
|
|
(0.9)
|
|
|
(1.1)
|
|
|
—
|
|
|
Non cash costs and
other
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
|
0.3
|
|
|
Copper-Gold
segment US GAAP operating expenses
|
$
|
49.6
|
|
|
$
|
33.8
|
|
|
$
|
41.4
|
|
|
$
|
47.4
|
|
|
$
|
69.7
|
|
|
______________________________________________________________
|
|
(1)
|
Mining, milling and
on-site general and administration costs. Mining includes all
stripping costs but excludes costs capitalized related to the
construction of the tailings dam. Stripping costs that provide
access to mineral reserves that will be produced in future periods
are expensed as incurred under US GAAP.
|
|
(2)
|
Silver sales are
reflected as a credit to operating costs.
|
By-Product
|
Three Months
Ended
|
|
Six Months
Ended
|
|
(US$ in millions,
except pounds and per pound amounts)
|
Jun 30
2015
|
|
|
Jun 30
2014
|
|
|
Jun 30
2015
|
|
|
Jun 30
2014
|
|
|
Copper payable
production (000's lbs)
|
20,159
|
|
16,035
|
|
35,564
|
|
30,278
|
|
|
Non-GAAP cash
cost
|
$
|
57.2
|
|
|
$
|
51.6
|
|
|
$
|
105.5
|
|
|
$
|
107.6
|
|
|
|
|
|
|
|
|
|
|
Less by-product
credits
|
|
|
|
|
|
|
|
|
|
Gold sales
(1)
|
$
|
56.5
|
|
|
$
|
54.4
|
|
|
$
|
92.7
|
|
|
$
|
78.9
|
|
|
|
Gold sales related to
deferred portion of Gold Stream Arrangement
|
(10.0)
|
|
|
(9.7)
|
|
|
(16.4)
|
|
|
(14.1)
|
|
|
|
Net gold by-product
credits
|
$
|
46.5
|
|
|
$
|
44.7
|
|
|
$
|
76.3
|
|
|
$
|
64.8
|
|
|
|
Silver by-product
credits (2)
|
1.3
|
|
|
1.6
|
|
|
2.5
|
|
|
2.3
|
|
|
Total by-product
credits
|
$
|
47.8
|
|
|
$
|
46.3
|
|
|
$
|
78.8
|
|
|
$
|
67.1
|
|
|
Non-GAAP cash cost
net of by-product credits
|
$
|
9.4
|
|
|
$
|
5.3
|
|
|
$
|
26.7
|
|
|
$
|
40.5
|
|
|
Non-GAAP cash cost
per pound, on a by-product basis
|
$
|
0.48
|
|
|
$
|
0.33
|
|
|
$
|
0.75
|
|
|
$
|
1.34
|
|
|
Three Months
Ended
|
|
(US$ in millions,
except pounds and per pound amounts)
|
June 30
2015
|
|
|
Mar 31
2015
|
|
|
31-Dec
2014
|
|
|
30-Sep
2014
|
|
|
30-Jun
2014
|
|
|
|
Copper payable
production (000's lbs)
|
20,159
|
|
15,405
|
|
18,024
|
|
16,267
|
|
16,035
|
|
|
Non-GAAP cash
cost
|
$
|
57.2
|
|
|
$
|
48.3
|
|
|
$
|
54.6
|
|
|
$
|
58.1
|
|
|
$
|
51.6
|
|
|
Less by-product
credits
|
|
|
|
|
|
|
|
|
|
|
|
Gold sales
(1)
|
$
|
56.5
|
|
|
$
|
36.2
|
|
|
$
|
39.0
|
|
|
$
|
55.2
|
|
|
$
|
54.4
|
|
|
|
Gold sales related to
deferred portion of Gold Stream Arrangement
|
(10.0)
|
|
|
(6.4)
|
|
|
(6.3)
|
|
|
(10.8)
|
|
|
(9.7)
|
|
|
|
Net gold by-product
credits
|
$
|
46.5
|
|
|
$
|
29.8
|
|
|
$
|
32.7
|
|
|
$
|
44.4
|
|
|
$
|
44.7
|
|
|
|
Silver by-product
credits (2)
|
1.3
|
|
|
1.2
|
|
|
0.9
|
|
|
1.1
|
|
|
1.6
|
|
|
Total by-product
credits
|
$
|
47.8
|
|
|
$
|
31.0
|
|
|
$
|
33.6
|
|
|
$
|
45.5
|
|
|
$
|
46.3
|
|
|
Non-GAAP cash cost
net of by-product credits
|
$
|
9.4
|
|
|
$
|
17.3
|
|
|
$
|
21.0
|
|
|
$
|
12.6
|
|
|
$
|
5.3
|
|
|
Non-GAAP cash cost
per pound, on a by-product basis
|
$
|
0.48
|
|
|
$
|
1.12
|
|
|
$
|
1.16
|
|
|
$
|
0.77
|
|
|
$
|
0.33
|
|
|
______________________________________________________________________
|
|
(1)
|
Excluded refining and
treatment charges.
|
|
(2)
|
Silver sales are
reflected as a credit to operating costs.
|
Co- Product
|
Three Months
Ended
|
|
Six Months
Ended
|
|
(US$ in millions,
except pounds, ounces and per unit amounts)
|
Jun 30
2015
|
|
Jun 30
2014
|
|
Jun 30
2015
|
|
Jun 30
2014
|
|
Copper payable
production (000's lbs)
|
20,159
|
|
|
16,035
|
|
|
35,564
|
|
|
30,278
|
|
|
Gold payable
production in Cu eq. (000's lbs) (1)
|
17,317
|
|
|
10,125
|
|
|
31,399
|
|
|
20,565
|
|
|
Payable production
(000's lbs)
|
37,476
|
|
|
26,160
|
|
|
66,963
|
|
|
50,843
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP cash cost
allocated to Copper
|
$
|
30.8
|
|
|
$
|
31.6
|
|
|
$
|
56.0
|
|
|
$
|
64.1
|
|
|
Non-GAAP cash cost
per pound, on a co-product basis
|
$
|
1.55
|
|
|
$
|
1.97
|
|
|
$
|
1.59
|
|
|
$
|
2.11
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP cash cost
allocated to Gold
|
$
|
26.4
|
|
|
$
|
20.0
|
|
|
$
|
49.5
|
|
|
$
|
43.5
|
|
|
Gold payable
production (ounces)
|
59,917
|
|
|
37,030
|
|
|
106,036
|
|
|
76,273
|
|
|
Non-GAAP cash cost
per ounce, on a co-product basis
|
$
|
434
|
|
|
$
|
538
|
|
|
$
|
462
|
|
|
$
|
573
|
|
|
Three Months
Ended
|
|
(US$ in millions,
except pounds, ounces and per unit amounts)
|
Jun 30
2015
|
|
Mar 31
2015
|
|
Dec 31
2014
|
|
Sep 30
2014
|
|
Jun 30
2014
|
|
Copper payable
production (000's lbs)
|
20,159
|
|
|
15,405
|
|
|
18,024
|
|
|
16,267
|
|
|
16,035
|
|
|
Gold payable
production in Cu eq. (000's lbs) (1)
|
17,317
|
|
|
14,082
|
|
|
10,954
|
|
|
15,976
|
|
|
10,125
|
|
|
Payable production
(000's lbs)
|
37,476
|
|
|
29,487
|
|
|
28,978
|
|
|
32,243
|
|
|
26,160
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP cash cost
allocated to Copper
|
$
|
30.8
|
|
|
$
|
25.2
|
|
|
$
|
34.0
|
|
|
$
|
29.3
|
|
|
$
|
31.6
|
|
|
Non-GAAP cash cost
per pound, on a co-product basis
|
$
|
1.55
|
|
|
$
|
1.64
|
|
|
$
|
1.88
|
|
|
$
|
1.80
|
|
|
$
|
1.97
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP cash cost
allocated to Gold
|
$
|
26.4
|
|
|
$
|
23.1
|
|
|
$
|
20.6
|
|
|
$
|
28.8
|
|
|
$
|
20.0
|
|
|
Gold payable
production (ounces)
|
59,917
|
|
|
46,119
|
|
|
40,967
|
|
|
60,366
|
|
|
37,030
|
|
|
Non-GAAP cash cost
per ounce, on a co-product basis
|
$
|
434
|
|
|
$
|
498
|
|
|
$
|
506
|
|
|
$
|
477
|
|
|
$
|
538
|
|
|
___________________________________________________
|
|
(1)
|
For the six months
ended June 30, 2015 gold has been converted from payable ounces to
thousands of copper equivalent pounds by using the gold production
for the periods presented, using a gold price of $801 and a copper
price of $2.70. For the six months ended June 30, 2014 gold has
been converted from payable ounces to thousands of copper
equivalent pounds by using the gold production for the periods
presented, using a gold price of $843 and a copper price of $3.13.
Gold has been converted from payable ounces to thousands of copper
equivalent pounds by using the gold production for the periods
presented, using a gold price of $795, $806, $829, $840, and $842
per ounce for the three months ended June 30, 2015, March 31, 2015,
December 31, 2014, September 30, 2014, and June 30, 2014,
respectively, (adjusted for the Royal Gold price of $435 per ounce)
and a copper price of $2.75, $2.64, $3.10, $3.17, and $3.08 per
pound for the three months ended June 30, 2015, March 31, 2015,
December 31, 2014, September 30, 2014, and June 30, 2014,
respectively.
|
Average realized sales price
The average realized sales price per payable pound or payable
ounce sold is calculated by dividing copper or gold sales revenue,
gross together with the final pricing adjustments and
mark-to-market adjustments by the pounds or ounces sold,
respectively, as shown in the tables below.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
(US$ in millions,
except pounds, ounces and per unit amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Average realized
sales price for Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper sales
reconciliation ($)
|
|
|
|
|
|
|
|
|
Copper sales,
excluding adjustments
|
$
|
58.4
|
|
|
$
|
68.6
|
|
|
$
|
96.7
|
|
|
$
|
102.6
|
|
|
Final pricing
adjustments
|
1.6
|
|
|
(1.9)
|
|
|
(5.7)
|
|
|
(2.0)
|
|
|
Mark-to-market
adjustments
|
(4.3)
|
|
|
3.5
|
|
|
1.2
|
|
|
2.1
|
|
|
Copper sales, net of
adjustments
|
55.7
|
|
|
70.2
|
|
|
92.2
|
|
|
102.7
|
|
|
|
Less Refining and
treatment costs
|
6.4
|
|
|
5.4
|
|
|
10.7
|
|
|
8.1
|
|
|
Copper
sales
|
$
|
49.3
|
|
|
$
|
64.8
|
|
|
$
|
81.5
|
|
|
$
|
94.6
|
|
|
|
|
|
|
|
|
|
|
Pounds of Copper
sold (000's lb)
|
21,195
|
|
|
21,939
|
|
|
35,986
|
|
|
32,732
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales price for Copper on a per pound basis
|
|
|
|
|
|
|
|
|
Copper sales
excluding adjustments
|
$
|
2.76
|
|
|
$
|
3.13
|
|
|
$
|
2.69
|
|
|
$
|
3.13
|
|
|
Final pricing
adjustments
|
0.08
|
|
|
(0.09)
|
|
|
$
|
(0.16)
|
|
|
(0.06)
|
|
|
Mark-to-market
adjustments
|
(0.21)
|
|
|
0.16
|
|
|
$
|
0.03
|
|
|
0.07
|
|
|
Average realized
Copper sales price per pound sold
|
$
|
2.63
|
|
|
$
|
3.20
|
|
|
$
|
2.56
|
|
|
$
|
3.14
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales price for Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold sales
reconciliation ($)
|
|
|
|
|
|
|
|
|
Gold sales related to
cash portion of Gold Stream Arrangement
|
$
|
13.1
|
|
|
$
|
11.7
|
|
|
$
|
21.4
|
|
|
$
|
17.2
|
|
|
Gold sales related to
deferred portion of Gold Stream Arrangement
|
|
10.0
|
|
|
|
9.7
|
|
|
|
16.4
|
|
|
|
14.1
|
|
|
|
Gold sales under Gold
Stream Arrangement
|
|
|
23.1
|
|
|
21.4
|
|
|
37.8
|
|
|
31.3
|
|
|
|
|
|
|
|
|
|
|
TCM share of gold
sales to MTM Customers
|
|
34.0
|
|
|
|
32.2
|
|
|
|
55.2
|
|
|
47.2
|
|
|
Final pricing
adjustments
|
|
|
(1.1)
|
|
|
(0.2)
|
|
|
(0.4)
|
|
|
(0.3)
|
|
|
Mark-to-market
adjustments
|
|
0.4
|
|
|
1.0
|
|
|
—
|
|
|
0.7
|
|
|
|
Gold sales TCM
Share
|
|
33.3
|
|
|
33.0
|
|
|
54.8
|
|
|
47.6
|
|
|
|
|
|
|
|
|
|
|
Gold sales, net of
adjustments
|
|
56.4
|
|
|
|
54.4
|
|
|
|
92.6
|
|
|
|
78.9
|
|
|
Less Refining and
treatment costs
|
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
|
Gold sales
|
|
56.3
|
|
|
|
54.1
|
|
|
|
92.3
|
|
|
|
78.5
|
|
|
|
|
|
|
|
|
|
|
Ounces of gold sold
to Royal Gold
|
|
|
|
|
|
|
|
|
TCM share of ounces
of gold sold to MTM customers
|
|
30,070
|
|
|
26,990
|
|
|
49,224
|
|
|
39,364
|
|
|
Total ounces of Gold
sold
|
|
27,850
|
|
|
|
24,993
|
|
|
|
45,446
|
|
|
|
36,493
|
|
|
|
57,920
|
|
|
|
51,983
|
|
|
|
94,670
|
|
|
|
75,857
|
|
|
Average realized
sales price for Gold on a per ounce basis
|
|
|
|
|
|
|
|
|
Gold sales related to
cash portion of Gold Stream Arrangement
|
$
|
435
|
|
|
$
|
435
|
|
|
$
|
435
|
|
|
$
|
435
|
|
|
Gold sales related to
deferred portion of Gold Stream Arrangement
|
|
334
|
|
|
|
359.0
|
|
|
334
|
|
|
$
|
359
|
|
|
Average realized
sales price per ounce sold to Royal Gold
|
$
|
769
|
|
|
$
|
794
|
|
|
$
|
769
|
|
|
$
|
794
|
|
|
|
|
|
|
|
|
|
|
TCM share of gold
sales to MTM Customers
|
$
|
1,221
|
|
|
$
|
1,288
|
|
|
1,215
|
|
|
$
|
1,293
|
|
|
Final pricing
adjustments
|
|
(39)
|
|
|
(8)
|
|
|
(10)
|
|
|
(7)
|
|
|
Mark-to-market
adjustments
|
|
15
|
|
|
40
|
|
|
—
|
|
|
19
|
|
|
Average realized
sales price per ounce sold for TCM share
|
$
|
1,197
|
|
|
$
|
1,320
|
|
|
$
|
1,205
|
|
|
$
|
1,305
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales price per ounce sold
|
$
|
975
|
|
|
$
|
1,047
|
|
|
$
|
979
|
|
|
$
|
1,040
|
|
|
Three Months
Ended
|
|
(US$ in millions,
except pounds, ounces and per unit amounts)
|
Jun 30
2015
|
|
Mar 31
2015
|
|
Dec 31
2014
|
|
Sep 30
2014
|
|
|
|
Jun 30
2014
|
|
Average realized
sales price for Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper sales
reconciliation ($)
|
|
|
|
|
|
|
|
|
|
|
Copper sales,
excluding adjustments
|
$
|
58.4
|
|
|
$
|
38.3
|
|
|
$
|
46.6
|
|
|
|
$
|
52.6
|
|
|
$
|
68.6
|
|
|
Final pricing
adjustments
|
1.6
|
|
|
(7.3)
|
|
|
(2.5)
|
|
|
1.3
|
|
|
(1.9)
|
|
|
Mark-to-market
adjustments
|
(4.3)
|
|
|
5.5
|
|
|
(1.5)
|
|
|
(4.0)
|
|
|
3.5
|
|
|
Copper sales, net of
adjustments
|
55.7
|
|
|
36.5
|
|
|
42.6
|
|
|
49.9
|
|
|
70.2
|
|
|
|
Less Refining and
treatment costs
|
6.4
|
|
|
4.3
|
|
|
4.4
|
|
|
4.2
|
|
|
5.4
|
|
|
Copper
sales
|
$
|
49.3
|
|
|
$
|
32.2
|
|
|
$
|
38.2
|
|
|
$
|
45.7
|
|
|
$
|
64.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds of Copper
sold (000's lb)
|
21,195
|
|
|
14,791
|
|
|
15,478
|
|
|
16,482
|
|
|
21,939
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales price for Copper on a per unit basis
|
|
|
|
|
|
|
|
|
|
|
Copper sales
excluding adjustments
|
$
|
2.76
|
|
|
$
|
2.59
|
|
|
$
|
3.01
|
|
|
$
|
3.19
|
|
|
$
|
3.13
|
|
|
Final pricing
adjustments
|
0.08
|
|
|
(0.49)
|
|
|
(0.16)
|
|
|
0.08
|
|
|
(0.09)
|
|
|
Mark-to-market
adjustments
|
(0.21)
|
|
|
0.37
|
|
|
(0.10)
|
|
|
(0.25)
|
|
|
0.16
|
|
|
Average realized
Copper sales price per pound sold
|
$
|
2.63
|
|
|
$
|
2.47
|
|
|
$
|
2.75
|
|
|
$
|
3.02
|
|
$
|
3.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales price for Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold sales
reconciliation ($)
|
|
|
|
|
|
|
|
|
|
|
Gold sales related to
cash portion of Gold Stream Arrangement
|
$
|
13.1
|
|
|
$
|
8.3
|
|
|
$
|
8.8
|
|
|
$
|
13.0
|
|
$
|
11.7
|
|
|
Gold sales related to
deferred portion of Gold Stream Arrangement
|
10.0
|
|
|
6.4
|
|
|
6.3
|
|
|
10.8
|
|
|
9.7
|
|
|
|
Gold sales under Gold
Stream Arrangement
|
23.1
|
|
|
|
14.7
|
|
|
|
15.1
|
|
|
23.8
|
|
|
21.4
|
|
|
TCM share of gold
sales to MTM Customers
|
34.0
|
|
|
21.2
|
|
|
24.0
|
|
|
35.6
|
|
|
32.2
|
|
|
Final pricing
adjustments
|
(1.1)
|
|
|
0.7
|
|
|
(2.5)
|
|
|
(0.2)
|
|
|
(0.2)
|
|
|
Mark-to-market
adjustments
|
0.4
|
|
|
(0.4)
|
|
|
2.4
|
|
|
(4.0)
|
|
|
1.0
|
|
|
|
Gold sales TCM
Share
|
33.3
|
|
|
|
21.5
|
|
|
|
23.9
|
|
|
|
31.4
|
|
|
|
33.0
|
|
|
Gold sales, net of
adjustments
|
56.4
|
|
|
|
36.2
|
|
|
|
39.0
|
|
|
|
55.2
|
|
|
|
54.4
|
|
|
Less Refining and
treatment costs
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|
Gold sales
|
$
|
56.3
|
|
|
|
$
|
36.0
|
|
|
|
$
|
38.8
|
|
|
|
$
|
55.0
|
|
|
|
$
|
54.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable ounces of
gold sold to Royal Gold
|
30,070
|
|
|
19,154
|
|
|
20,217
|
|
|
29,965
|
|
|
26,990
|
|
|
TCM share of ounces
of gold sold to MTM customers
|
27,850
|
|
|
17,596
|
|
|
18,692
|
|
|
28,009
|
|
|
24,993
|
|
|
Total ounces of Gold
sold
|
57,920
|
|
|
|
36,750
|
|
|
|
38,909
|
|
|
|
57,974
|
|
|
|
51,983
|
|
|
|
|
Average realized
sales price for Gold on a per ounce basis
|
|
|
|
|
|
|
|
|
|
|
Gold sales related to
cash portion of Gold Stream Arrangement
|
$
|
435
|
|
|
$
|
435
|
|
|
$
|
435
|
|
|
$
|
435
|
|
|
$
|
435
|
|
|
Gold sales related to
deferred portion of Gold Stream Arrangement
|
334
|
|
|
334
|
|
|
312
|
|
|
359
|
|
|
359
|
|
|
Average realized
sales price per ounce sold to Royal Gold
|
$
|
769
|
|
|
$
|
769
|
|
|
$
|
747
|
|
|
$
|
794
|
|
$
|
794
|
|
|
|
|
|
|
|
|
|
|
|
|
TCM share of gold
sales to MTM Customers
|
$
|
1,221
|
|
|
$
|
1,205
|
|
|
$
|
1,284
|
|
|
$
|
1,271
|
|
|
$
|
1,288
|
|
|
Final pricing
adjustments
|
(39)
|
|
|
40
|
|
|
(134)
|
|
|
(7)
|
|
|
(8)
|
|
|
Mark-to-market
adjustments on current period sales
|
15
|
|
|
(25)
|
|
|
129
|
|
|
(143)
|
|
|
40
|
|
|
Average realized
sales price per ounce sold for TCM share
|
$
|
1,197
|
|
|
$
|
1,220
|
|
|
$
|
1,279
|
|
|
$
|
1,121
|
|
$
|
1,320
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales price per ounce sold
|
$
|
975
|
|
|
$
|
985
|
|
|
$
|
1,002
|
|
|
$
|
952
|
|
$
|
1,047
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________________________________________________
|
|
(1)
|
The average realized
sales price per payable pound of copper sold and per payable ounce
of gold sold is impacted by any final volume and pricing
adjustments and mark-to-market adjustments for shipments made in
prior periods.
|
Additional information on the Company's financial position is
available in Thompson Creek's Quarterly Report on Form 10-Q for the
period ended June 30, 2015, which was
filed today on EDGAR (www.sec.gov) and SEDAR (www.sedar.com) and
posted on the Company's website (www.thompsoncreekmetals.com).
Conference Call and Webcast
Thompson Creek will hold a conference call for analysts and
investors to discuss its second quarter 2015 financial results
on Friday, August 7, 2015 at
8:00 am Eastern Time.
To participate in the call, please dial 1 (647) 427-7450 or 1
(888) 231-8191. A live audio webcast of the conference call will be
available at http://cnw.ca/uGrB0 and
www.thompsoncreekmetals.com.
An archived recording of the second quarter 2015 conference
call/webcast will be available through August 21, 2015, by dialing 1 (416) 849-0833 or 1
(855) 859-2056 and entering replay code 81714952.
About Thompson Creek Metals Company Inc.
Thompson Creek Metals Company Inc. is a North American mining
company. The Company's principal operating property is its
100%-owned Mount Milligan mine, an open-pit copper and gold mine
and concentrator in British
Columbia. The Company's molybdenum assets consist of its
100%-owned Thompson Creek Mine, an open-pit molybdenum mine and
concentrator in Idaho, its 75%
joint venture interest in the Endako Mine, an open-pit molybdenum
mine, concentrator and roaster in British
Columbia, and its Langeloth Metallurgical Facility in
Pennsylvania. The Company's development project is the Berg
property, a copper, molybdenum, and silver exploration property
located in British Columbia. The
Company's principal executive office is located in Denver, Colorado. More information is
available at www.thompsoncreekmetals.com.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains ''forward-looking
statements'' within the meaning of the United States Private
Securities Litigation Reform Act of 1995 Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act
of 1934 and applicable Canadian securities legislation. These
forward-looking statements generally are identified by the words
"believe," "project," "expect," "anticipate," "estimate," "intend,"
"future," "plan," "may," "should," "will," "would," "will be,"
"will continue," "will likely result," and similar expressions. Our
forward-looking statements may include, without limitation,
statements with respect to: future financial or operating
performance of the Company or its subsidiaries and its projects;
access to existing or future financing arrangements and ability to
refinance or reduce debt on favorable terms or at all; future
inventory, production, sales, payments from customers, cash costs,
capital expenditures and exploration expenditures; future earnings
and operating results; expected concentrate and recovery grades;
estimates of mineral reserves and resources, including estimated
mine life and annual production; statements as to the projected
ramp-up at Mount Milligan Mine, including expected achievement of
design capacities, decisions regarding whether to proceed with the
construction of a permanent secondary crusher, and the effects of
secondary crushing; future operating plans and goals, including
statements regarding Langeloth's business model; and future
molybdenum, copper, gold and silver prices.
Where we express an expectation or belief as to future events or
results, such expectation or belief is expressed in good faith and
believed to have a reasonable basis. However, our forward-looking
statements are based on current expectations and assumptions that
are subject to risks and uncertainties which may cause actual
results to differ materially from future results expressed,
projected or implied by those forward-looking statements. Important
factors that could cause actual results and events to differ from
those described in such forward-looking statements can be found in
the section entitled "Risk Factors" in Thompson Creek's Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other
documents filed on EDGAR at www.sec.gov and on SEDAR at
www.sedar.com. Although we have attempted to identify those
material factors that could cause actual results or events to
differ from those described in such forward-looking statements,
there may be other factors, currently unknown to us or deemed
immaterial at the present time that could cause results or events
to differ from those anticipated, estimated or intended. Many of
these factors are beyond our ability to control or predict. Given
these uncertainties, the reader is cautioned not to place undue
reliance on our forward-looking statements. We undertake no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
THOMPSON CREEK METALS
COMPANY INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
|
June
30,
|
|
|
December
31,
|
|
|
(US dollars in
millions, except share amounts)
|
2015
|
|
|
2014
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
211.1
|
|
|
$
|
265.6
|
|
|
Accounts
receivable
|
31.4
|
|
|
42.0
|
|
|
Accounts
receivable-related parties
|
0.2
|
|
|
4.1
|
|
|
Product
inventory
|
76.8
|
|
|
96.6
|
|
|
Materials and
supplies inventory
|
26.3
|
|
|
30.4
|
|
|
Prepaid expenses and
other current assets
|
7.1
|
|
|
7.7
|
|
|
Income and mining
taxes receivable
|
0.5
|
|
|
0.5
|
|
|
Restricted
cash
|
—
|
|
|
1.6
|
|
|
Deferred income tax
assets
|
0.2
|
|
|
0.1
|
|
|
353.6
|
|
|
448.6
|
|
|
Property, plant,
equipment and development, net
|
2,063.60
|
|
|
2,218.30
|
|
|
Restricted
cash
|
—
|
|
|
5.7
|
|
|
Reclamation
deposits
|
10.3
|
|
|
10.3
|
|
|
Other
assets
|
40.5
|
|
|
35.4
|
|
|
Deferred income tax
assets
|
133.3
|
|
|
128.0
|
|
|
$
|
2,601.3
|
|
|
$
|
2,846.3
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
80.7
|
|
|
$
|
93.1
|
|
|
Income, mining and
other taxes payable
|
1.5
|
|
|
1.8
|
|
|
Current portion of
Gold Stream deferred revenue
|
40.3
|
|
|
40.4
|
|
|
Current portion of
long-term debt
|
1.4
|
|
|
3.9
|
|
|
Current portion of
long-term lease obligations
|
24.9
|
|
|
22.8
|
|
|
Deferred income tax
liabilities
|
13.5
|
|
|
14.1
|
|
|
Other current
liabilities
|
0.3
|
|
|
0.3
|
|
|
162.6
|
|
|
176.4
|
|
|
Gold Stream deferred
revenue
|
705.3
|
|
|
721.1
|
|
|
Long-term
debt
|
831.3
|
|
|
872.3
|
|
|
Long-term lease
obligations
|
40.0
|
|
|
45.7
|
|
|
Other
liabilities
|
4.8
|
|
|
5.2
|
|
|
Asset retirement
obligations
|
35.5
|
|
|
35.3
|
|
|
Deferred income tax
liabilities
|
97.4
|
|
|
102.8
|
|
|
1,876.90
|
|
|
1,958.8
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Common stock, no-par,
221,001,135 and 214,148,315 shares issued and outstanding as of
June 30, 2015 and December 31, 2014, respectively
|
1,195.70
|
|
|
1,186.1
|
|
|
Additional paid-in
capital
|
80.2
|
|
|
86.6
|
|
|
Accumulated
deficit
|
(333.8)
|
|
|
(246.9)
|
|
|
Accumulated other
comprehensive income (loss)
|
(217.7)
|
|
|
(138.3)
|
|
|
724.4
|
|
|
887.5
|
|
|
$
|
2,601.3
|
|
|
$
|
2,846.3
|
|
THOMPSON CREEK METALS
COMPANY INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS and COMPREHENSIVE INCOME
(LOSS)
(UNAUDITED)
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
(US dollars in
millions, except per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Copper
sales
|
$
|
49.3
|
|
|
$
|
64.8
|
|
|
$
|
81.5
|
|
|
$
|
94.6
|
|
|
Gold sales
|
56.3
|
|
|
54.1
|
|
|
92.3
|
|
|
78.5
|
|
|
Molybdenum
sales
|
20.9
|
|
|
126.3
|
|
|
63.7
|
|
|
229.2
|
|
|
Tolling, calcining
and other
|
7.6
|
|
|
3.2
|
|
|
19.6
|
|
|
7.1
|
|
|
|
Total
revenues
|
134.1
|
|
|
248.4
|
|
|
257.1
|
|
|
409.4
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
75.3
|
|
|
148.2
|
|
|
158.3
|
|
|
261.8
|
|
|
|
Depreciation,
depletion and amortization
|
26.8
|
|
|
33.0
|
|
|
46.8
|
|
|
55.6
|
|
|
Total cost of
sales
|
|
102.1
|
|
181.2
|
|
205.1
|
|
317.4
|
|
|
Selling and
marketing
|
|
2.2
|
|
3.6
|
|
5.2
|
|
7.7
|
|
|
Accretion
expense
|
|
0.6
|
|
0.9
|
|
1.2
|
|
1.8
|
|
|
General and
administrative
|
|
4.9
|
|
5.2
|
|
10.5
|
|
11.8
|
|
|
Exploration
|
|
0.1
|
|
0.2
|
|
0.1
|
|
0.3
|
|
|
Costs for idle mining
operations
|
|
12.1
|
|
|
|
—
|
|
|
|
17.7
|
|
|
|
—
|
|
|
|
Total costs and
expenses
|
122.0
|
|
|
191.1
|
|
|
239.8
|
|
|
339.0
|
|
|
OPERATING INCOME
(LOSS)
|
|
12.1
|
|
|
|
57.3
|
|
|
|
17.3
|
|
|
|
70.4
|
|
|
OTHER (INCOME)
EXPENSE
|
|
|
|
|
|
|
|
(Gain) loss on
foreign exchange
|
(16.9)
|
|
|
(42.3)
|
|
|
71.3
|
|
|
4.2
|
|
|
Interest and finance
fees
|
22.3
|
|
|
23.3
|
|
|
44.9
|
|
|
46.9
|
|
|
Loss from debt
extinguishment
|
3.1
|
|
|
0.5
|
|
|
2.8
|
|
|
0.5
|
|
|
Interest (income)
expense
|
—
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
Other
|
(1.8)
|
|
|
(0.2)
|
|
|
(3.1)
|
|
|
(3.0)
|
|
|
|
Total other (income)
expense
|
6.7
|
|
|
(18.8)
|
|
|
115.8
|
|
|
48.4
|
|
|
Income (loss) before
income and mining taxes
|
|
5.4
|
|
|
|
76.1
|
|
|
|
(98.5)
|
|
|
|
22.0
|
|
|
Total income and
mining tax expense (benefit)
|
|
5.1
|
|
|
|
14.5
|
|
|
|
(11.6)
|
|
|
|
(0.5)
|
|
|
NET INCOME
(LOSS)
|
$
|
0.3
|
|
|
$
|
61.6
|
|
|
$
|
(86.9)
|
|
|
$
|
22.5
|
|
|
COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
17.1
|
|
|
42.0
|
|
|
(79.4)
|
|
|
(3.6)
|
|
|
|
Total other
comprehensive income (loss)
|
17.1
|
|
|
42.0
|
|
|
(79.4)
|
|
|
(3.6)
|
|
|
Total comprehensive
income (loss)
|
$
|
17.4
|
|
|
$
|
103.6
|
|
|
$
|
(166.3)
|
|
|
$
|
18.9
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.00
|
|
|
$
|
0.35
|
|
|
$
|
(0.40)
|
|
|
$
|
0.13
|
|
|
Diluted
|
$
|
0.00
|
|
|
$
|
0.28
|
|
|
$
|
(0.40)
|
|
|
$
|
0.10
|
|
|
Weighted-average
number of common shares
|
|
|
|
|
|
|
|
|
Basic
|
218.0
|
|
|
174.5
|
|
|
216.2
|
|
|
173.1
|
|
|
Diluted
|
218.1
|
|
|
220.3
|
|
|
216.2
|
|
|
217.3
|
|
THOMPSON CREEK METALS
COMPANY INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
June
30,
|
|
(US dollars in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
0.3
|
|
|
$
|
61.6
|
|
|
$
|
(86.9)
|
|
|
$
|
22.5
|
|
|
Items not affecting
cash:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
26.8
|
|
|
33.0
|
|
|
46.8
|
|
|
55.6
|
|
|
Deferred revenue
related to Gold Stream Arrangement
|
(10.0)
|
|
|
(9.7)
|
|
|
(16.4)
|
|
|
(14.1)
|
|
|
Accretion
expense
|
0.6
|
|
|
0.9
|
|
|
1.2
|
|
|
1.8
|
|
|
Amortization of
finance fees
|
1.2
|
|
|
1.3
|
|
|
2.4
|
|
|
2.6
|
|
|
Stock-based
compensation
|
1.8
|
|
|
1.5
|
|
|
3.1
|
|
|
2.6
|
|
|
Obsolete materials
and supplies inventory write downs
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
Product inventory
write downs
|
1.8
|
|
|
1.1
|
|
|
7
|
|
|
6.6
|
|
|
Deferred income tax
benefit
|
5.0
|
|
|
7.8
|
|
|
(10.1)
|
|
|
(9.3)
|
|
|
Unrealized gain on
financial instruments and mark-to-market adjustments
|
(6.0)
|
|
|
(2.8)
|
|
|
—
|
|
|
(3.2)
|
|
|
Unrealized foreign
exchange (gain) loss
|
(16.0)
|
|
|
(44.0)
|
|
|
70.6
|
|
|
3.6
|
|
|
Debt
extinguishment
|
0.7
|
|
|
(0.1)
|
|
|
0.4
|
|
|
(0.1)
|
|
|
Change in current
assets and liabilities
|
11.9
|
|
|
(4.1)
|
|
|
0.2
|
|
|
(12.8)
|
|
|
Gold Stream
Arrangement net payable
|
5.8
|
|
|
4.1
|
|
|
0.3
|
|
|
10.9
|
|
|
|
Cash generated by
(used in) operating activities
|
23.9
|
|
|
50.7
|
|
|
18.6
|
|
|
66.9
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(9.7)
|
|
|
|
(26.7)
|
|
|
|
(22.9)
|
|
|
|
(48.5)
|
|
|
Capitalized interest
payments
|
|
(0.3)
|
|
|
|
(0.6)
|
|
|
|
(1.0)
|
|
|
|
(6.9)
|
|
|
Restricted
cash
|
|
0.1
|
|
|
|
(0.6)
|
|
|
|
7.2
|
|
|
|
—
|
|
|
Reclamation
deposit
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10.0)
|
|
|
|
Cash generated by
(used in) investing activities
|
(9.9)
|
|
|
(27.9)
|
|
|
(16.7)
|
|
|
(65.4)
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Equipment financings
and repayments
|
|
(6.1)
|
|
|
|
(5.5)
|
|
|
|
(12.6)
|
|
|
|
(10.8)
|
|
|
Repayment of
long-term debt
|
|
(1.0)
|
|
|
|
(5.1)
|
|
|
|
(2.3)
|
|
|
|
(8.8)
|
|
|
Senior unsecured note
repurchase
|
|
(34.2)
|
|
|
|
—
|
|
|
|
(41.0)
|
|
|
|
—
|
|
|
Proceeds (costs) from
issuance of common shares, net
|
|
0.2
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
Cash generated by
(used in) financing activities
|
(41.1)
|
|
|
(10.6)
|
|
|
(55.4)
|
|
|
(19.6)
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
—
|
|
|
|
1.2
|
|
|
|
(1.0)
|
|
|
|
0.3
|
|
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
|
(27.1)
|
|
|
|
13.4
|
|
|
|
(54.5)
|
|
|
|
(17.8)
|
|
|
Cash and cash
equivalents, beginning of period
|
|
238.2
|
|
|
|
202.7
|
|
|
|
265.6
|
|
|
|
233.9
|
|
|
Cash and cash
equivalents, end of period
|
$
|
211.1
|
|
|
$
|
216.1
|
|
|
$
|
211.1
|
|
|
$
|
216.1
|
|
SOURCE Thompson Creek Metals Company Inc.
