Thompson Creek Metals Company Inc has announced financial results for the three months ended March 31st 2010 prepared in accordance with United States generally accepted accounting principles. All dollar amounts are in United States dollars unless otherwise indicated.
Mr Kevin Loughrey chairman & CEO of Thompson Creek Metals said that "Thompson Creek achieved excellent operational performance in the first quarter of 2010 and the Company is on track to achieve its production and cost guidance for the year. 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 USD 5.36 per pound, which was below our guidance of USD 6 to USD 7 per pound for the full year."
He added that "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."
First quarter financial results
The company's revenues rose by 62% to USD 127.8 million in the first quarter of 2010 from USD 78.8 million a year earlier primarily due to a 43% increase in the average realized price for molybdenum products to USD 14.50 per pound from USD 10.14 per pound.
After the deduction of operating, selling, marketing, general and administrative, exploration, depreciation, depletion, amortization and accretion costs, the Company generated operating income totalling USD 31.1 million in the first quarter, up from USD 1.7 million a year earlier.
First quarter net income was USD 1.1 million as compared with USD 8.7 million in the first quarter of 2009. Non GAAP adjusted net income was USD 25.6 million in the first quarter of 2010 versus USD 9 million. The non GAAP adjusted net income excludes non-cash charges related to the company's warrants of USD 24.5 million in the first quarter of 2010 and USD 0.3 million a year earlier.
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 USD 5.36 per pound in the first quarter, down from USD 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 USD 4.74 per pound, down from USD 5.83 per pound a year earlier. The Endako Mine's cash cost per pound produced was USD 7.26 per pound as compared with USD 6.17 per pound in the same quarter a year earlier.
