Thompson Creek announces first quarter 2009 financial results. Some of the highlights are as follows:
1. Molybdenum production in the first quarter of 2009 was 6.1 million pounds, up from 5.6 million pounds in the same period a year earlier
2. The first quarter production level was in line with current production plans for the year
3. Weighted average cash costs were reduced to USD 5.93 per pound produced in the first quarter from USD 8.29 per pound a year earlier
4. 2009 guidance for cash costs has been revised to USD 6.25 to USD 7.25 per pound from previous guidance of USD 7.25 to USD 8.25 per pound. Production and sales guidance remains unchanged at 20 to 24 million pounds for the year
5. Operating cash flows were USD 44.7 million in the first quarter as compared with USD 63.4 million a year earlier
6. Total debt was reduced to USD 16.9 million on March 31st 2009 from USD 17.3 million on December 31st 2008. Total cash, cash equivalents and short term investments at March 31st 2009 were USD 260.6 million as compared with USD 258 million on December 31st 2008.
First quarter net income was USD 11.2 million as compared with USD 46.8 million in the first quarter of 2008.
Mr Kevin Loughrey chairman & CEO of Thompson Creek said that "Thompson Creek's mine production during the first quarter of 2009 was consistent with our current plans to produce 20 to 24 million pounds of molybdenum in 2009. However, the reduction in molybdenum production costs exceeded expectations and as a result we have lowered our 2009 estimated range for cash production costs to USD 6.25 to USD 7.25 per pound from previous guidance of USD 7.25 to USD 8.25 per pound. While overall the molybdenum market continues to experience weaker conditions than it did for most of last year, we are encouraged by the upturn in price in the past two weeks and we continue to expect a sustained recovery in molybdenum demand and prices in the medium term future as the world economy recovers from recession."
He added that "Given our strong cash position and recent actions to reduce production and conserve cash, Thompson Creek is well positioned not only to weather additional market weakness should it occur but also to raise production again relatively quickly when demand recovers and to consider possible acquisitions that will benefit shareholders."
The company's revenues declined by 69% YoY to USD 78.9 million in the first quarter of 2009 from USD 254.8 million a year earlier primarily due to a 69% decline in the average realized price for molybdenum and upgraded products to USD 10.14 per pound from USD 32.69 per pound. Sales volume was slightly lower at 7.5 million pounds in the latest quarter versus 7.7 million pounds a year earlier.
Net income was USD 11.2 million or USD 0.09 per basic and diluted common share, compared with USD 46.8 million or USD 0.41 per basic and USD 0.37 per diluted share in the first quarter of 2008. First quarter cash flow from operating activities was USD 44.7 million as compared with USD 63.4 million a year earlier.
Capital expenditures totaled USD 18.7 million in the first quarter of 2009, comprised of USD 14.9 million of sustaining capital expenditures and USD 3.8 million for the company's 75% share of capital expenditures for the Endako mill expansion.
The company's mines produced 6.1 million pounds of molybdenum in the first quarter, up from 5.6 million pounds in the first quarter of 2008. The Thompson Creek Mine produced 4.4 million pounds, up from 3.6 million pounds a year earlier, while the company's 75% share of the Endako Mine's production was 1.7 million as compared with 2 million pounds a year earlier.
