Thompson Creek provides update on 2009 operating plans
February 18 2009 - 5:00AM
PR Newswire (US)
NYSE: TC TSX: TCM, TCM.WT Frankfurt: A6R TORONTO, Feb. 18
/PRNewswire-FirstCall/ -- Thompson Creek Metals Company Inc. (the
"Company"), one of the world's largest publicly traded, pure
molybdenum producers, today provided additional information
concerning its plans to reduce molybdenum production and conserve
cash in 2009. "Thompson Creek has taken the necessary steps to
adjust production and reduce costs and capital spending in response
to the lower demand for molybdenum and generally unfavorable market
conditions," said Kevin Loughrey, Chairman and Chief Executive
Officer. "The changes we have adopted, along with the Company's
substantial cash balances and low debt, put Thompson Creek in a
better position to continue operating at both mines during the
worldwide economic downturn. We intend to remain flexible and ready
to adjust our production higher or lower if there are substantial
changes in market conditions in the future." The Company announced
on January 27, 2009 that its molybdenum production is expected to
be 20 to 24 million pounds in 2009, down from previous guidance of
31.5 to 34 million pounds. The Company now has completed a review
of mine operation plans and currently expects this year's Thompson
Creek Mine production to be 15 to 17 million pounds and its 75%
share of Endako Mine production to be 5 to 7 million pounds. The
planned production adjustments include a reduction in mill
operation to 70% of capacity (a 10 days on, four days off schedule)
at the Thompson Creek Mine beginning mid-April and a temporary
shutdown for about a month this summer at both the Thompson Creek
and Endako mines. The Company's sales of molybdenum produced at its
own mines are expected to be 20 to 24 million pounds in 2009. For
2009, Thompson Creek currently expects sustaining capital
expenditures at both mines and the Langeloth Metallurgical Facility
will total $38 million. In addition, the Company's share of
expansion capital expenditures at the Endako Mine is now expected
to be $22 million in 2009. As previously announced, the Endako
expansion project has been suspended until the molybdenum market
improves. The Company's cash balances were $258 million and
outstanding debt was $17.3 million as at December 31, 2008. Cash
balances as of February 16, 2009 were approximately $271 million.
2008 Production, Sales and Capital Expenditures Thompson Creek's
molybdenum production totaled 7.8 million pounds in the fourth
quarter of 2008 and 26.0 million pounds during the entire year.
Production at the Thompson Creek Mine was 4.8 million pounds in the
fourth quarter and 16.7 million pounds for the year, while the
Company's 75% share of production at the Endako Mine was 3.0
million pounds in the fourth quarter and 9.3 million pounds for all
of 2008. Total sales of molybdenum produced at the Company's own
mines were 6.6 million pounds in the fourth quarter of 2008 and
22.4 million pounds during the full year. Total capital
expenditures in 2008 were $114 million, comprised of sustaining
capital expenditures of $71 million and Endako expansion capital
expenditures of $43 million. About Thompson Creek Metals Company
Inc. Thompson Creek Metals Company Inc. is one of the largest
publicly traded, pure molybdenum producers in the world. The
Company owns the Thompson Creek open-pit molybdenum mine and mill
in Idaho, a metallurgical roasting facility in Langeloth,
Pennsylvania and a 75% share of the Endako open-pit mine, mill and
roasting facility in northern British Columbia. Thompson Creek has
two high-grade underground molybdenum deposits, the Davidson
Deposit near Smithers, B.C., and the Mount Emmons Deposit near
Crested Butte, Colorado. The Company is continuing to pursue
permitting of the Davidson Project and is evaluating the Mount
Emmons Deposit. The Company has approximately 800 employees. Its
principal executive office is in Denver, Colorado, and it has other
executive offices in Toronto, Ontario and Vancouver, British
Columbia. More information is available at
http://www.thompsoncreekmetals.com/. Cautionary Note Regarding
Forward-Looking Statements
---------------------------------------------------- This news
release contains "forward-looking information" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation which may
include, but is not limited to, statements with respect to the
timing and amount of estimated future production. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Thompson Creek and/or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include those factors
discussed in the section entitled "Risk Factors" in Thompson
Creek's current annual information form which is available on SEDAR
at http://www.sedar.com/ and is incorporated in its Annual Report
on Form 40-F filed with the United States Securities and Exchange
Commission which is available at http://www.sec.gov/. Although
Thompson Creek has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and Thompson Creek does not undertake to update any such
forward-looking statements, except in accordance with applicable
securities laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers are cautioned not to place undue
reliance on forward-looking statements. Readers should refer to
Thompson Creek's current annual information form which is available
on SEDAR at http://www.sedar.com/ and is incorporated in its Annual
Report on Form 40-F filed with the SEC which is available at
http://www.sec.gov/ and subsequent continuous disclosure documents
available at http://www.sedar.com/ and http://www.sec.gov/ for
further information on mineral reserves and mineral resources,
which is subject to the qualifications and notes set forth therein.
CONTACT: Wayne Cheveldayoff, Director of Investor Relations,
Thompson Creek Metals Company Inc., Tel.: (416) 860-1438, ; Dan
Symons, Renmark Financial Communications Inc., Tel.: (514)
939-3989, DATASOURCE: Thompson Creek Metals Company Inc. CONTACT:
Wayne Cheveldayoff, Director of Investor Relations, Thompson Creek
Metals Company Inc., Tel.: (416) 860-1438, ; Dan Symons, Renmark
Financial Communications Inc., Tel.: (514) 939-3989,
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