Thompson Creek Production Consistant With Plans
TORONTO, ON - Thompson Creek Metals Company reported that 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. The first-quarter production level was in line with current production plans for the year. Weighted-average cash costs were reduced to $5.93 per pound produced in the first quarter from $8.29 per pound a year earlier.
The 2009 guidance for cash costs has been revised to $6.25 to $7.25 per pound from previous guidance of $7.25 to $8.25 per pound. Production and sales guidance remains unchanged at 20 to 24 million pounds for the year.
Operating cash flows were $44.7 million in the first quarter, compared with $63.4 million a year earlier. Total debt was reduced to $16.9 million on March 31, 2009 from $17.3 million on December 31, 2008. Total cash, cash equivalents and short-term investments at March 31, 2009 were $260.6 million, compared with $258 million on December 31, 2008. First-quarter net income was $11.2 million.
The decline in net income was due primarily to a 69% reduction in the average realized price on molybdenum and upgraded product sales to $10.14 per pound in the first quarter from $32.69 per pound a year earlier, which resulted in a year-over-year decrease in revenues to $78.9 million from $254.8 million.
"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," said Kevin Loughrey, Chairman and Chief Executive Officer.
"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 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," Loughrey stated.
"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 address is