Thompson Creek Metals Company Inc, one of the world's largest publicly traded, pure molybdenum producers, has announced financial results for the 3 and 6 months ended June 30th 2010 prepared in accordance with United States generally accepted accounting principles.
Mr Kevin Loughrey chairman & CEO of Thompson Creek Metals Company Inc said that "Thompson Creek improved its financial performance in the second quarter of 2010 as a result of strengthening molybdenum prices. The Company's average realized molybdenum sales price for the second quarter of 2010 increased by 16% from the first quarter of 2010 and nearly 80% from one year ago. The Company's operations also performed well in the second quarter and remain on track to achieve previously announced production and cost guidance for the year."
He added that "Molybdenum prices have edged lower recently due to slightly softer demand from steel companies and also to a lessening of the confidence of molybdenum market participants in the strength and timing of the world economic recovery. Despite this correction to pricing, we believe the fundamental supply and demand projections for molybdenum remain quite favorable and should contribute to an improving financial performance for the Company over the medium term."
Revenues for the second quarter of 2010 were USD 148.4 million, up by USD 74.4 million or 100.5% from USD 74 million for the second quarter of 2009. The increase was primarily the result of a 79% increase in average realized molybdenum sales prices to USD 16.84 per pound from USD 9.41 per pound in the second quarter of 2009.
Net income for the second quarter of 2010 was USD 126.5 million or USD 0.90 per basic and USD 0.87 per diluted share, compared to a net loss of USD 89.3 million in the second quarter of 2009. Net income for the second quarter of 2010 included a non cash unrealized gain on common stock purchase warrants of USD 74.8 million. Net loss for the second quarter of 2009 included a non cash unrealized loss on common stock purchase warrants of USD 83 million.
