Thompson Creek Metals Company Inc has announced financial results for the three and nine months ended September 30th 2011.
Financial Highlights:
Revenue for the third quarter of 2011 was USD 154.8 million as compared to USD 161.8 million for the third quarter of 2010. Sales volumes for the third quarter of 2011 were 9.6 million pounds of molybdenum as compared to 10.3 million pounds for the third quarter of 2010.
Revenue for the nine months ended September 30th 2011 was USD 552.4 million as compared to USD 438.0 million for the same period in 2010. Sales volumes for the nine months ended September 30th 2011 were 32 million pounds of molybdenum as compared to 27.5 million pounds for the same period in 2010.
Losses on foreign exchange for the third quarter of 2011 were USD 23.9 million or USD 0.14 per basic and diluted share, which included a non cash unrealized foreign exchange loss of USD 20.5 million or USD 0.12 per basic and diluted share. The foreign exchange loss was the result of the strengthening of the USD against the CAD. This compares to a foreign exchange gain of USD 6.7 million or USD 0.05 per basic and diluted share, for the third quarter of 2010.
Losses on foreign exchange for the nine months ended September 30th 2011 were USD 21.8 million or USD 0.13 per basic and diluted share, which included a non cash unrealized foreign exchange loss of USD 20.5 million or USD 0.12 per basic and diluted share. This compares to a foreign exchange gain of USD 8.0 million or USD 0.06 per basic and USD 0.05 per diluted share, for the same period in 2010.
Net income for the third quarter of 2011 was USD 45.6 million or USD 0.27 per basic and diluted share as compared to USD 31.1 million or USD 0.22 per basic and diluted share for the third quarter of 2010. Net income for the third quarter of 2011 included a non cash unrealized gain on common stock warrants of USD 42.0 million or USD 0.25 per basic and diluted share. Net income for the third quarter of 2010 included a non cash unrealized loss on common stock warrants of USD 20.5 million or USD 0.15 per basic and USD 0.14 per diluted share.
Net income for the nine months ended September 30th 2011 was USD 291.3 million or USD 1.75 per basic and USD 1.67 per diluted share as compared to USD 158.7 million or USD 1.14 per basic and USD 1.08 per diluted share for the same period in 2010. Net income for the nine months ended September 30th 2011 included a non cash unrealized gain of USD 168.4 million or USD 1.01 per basic and USD 0.96 per diluted share. Net income for the nine months ended September 30th 2010 included a non cash unrealized gain of USD 29.8 million or USD 0.21 per basic and USD 0.20 per diluted share.
Mr Kevin Loughrey chairman & CEO of Thompson Creek said that "Thompson Creek's third quarter financial performance was generally in line with our previously announced guidance for 2011 performance. Necessary pit sequencing at the Thompson Creek mine has resulted in higher volume, grade, and production in the first half of the year, and reduced performance in all of these areas in the second half of the year of 2011. For the nine months ended September 30th 2011, revenue was up 26.1% to USD 552.4 million, cash flow from operations was up 44.4% to USD 181.6 million and total molybdenum sold was up 16.7% to 32.0 million pounds. Third quarter performance was also impacted by non cash unrealized foreign exchange losses due to the strengthening of the USD against the CAD."
Mr Loughrey said that "We anticipate that over the balance of 2011 our average price for molybdenum sales will likely be lower than our year to date average due to price weakness experienced in the fourth quarter. For the fourth quarter of 2011, while we expect production, grade, and cash costs to be very similar at the Endako mine and improved at the Thompson Creek mine compared to the third quarter, the combination of the lower molybdenum prices and increased sales of lower margin third party purchased and processed molybdenum will likely impact performance for the fourth quarter. We continue to believe our full year performance will remain within our previously announced guidance."
