Endako Mill Expansion Project Resumes

 

TORONTO - Thompson Creek Metals Company reported that mining operations generated higher production and lower cash costs in the second quarter of 2009 compared with first-quarter levels and, as a result, the Company is in an excellent position to achieve its production and cost guidance for the year," said Kevin Loughrey, Chairman and Chief Executive Officer.

"Another positive development for the Company is the recent improvement in molybdenum prices to more than $16 per pound. The price rise didn't occur early enough to have a significant impact on the Company's second-quarter sales revenues, which primarily reflected molybdenum market conditions in the March-to-May period when average monthly Metals Week molybdenum oxide prices were in the range of $7.90 to $9.16 per pound.

"The molybdenum price increase will have a positive impact on the Company's third-quarter financial results and it raises our confidence that a sustained recovery of the molybdenum market is underway," Loughrey added.

Due to the molybdenum market improvement, the Company's Board of Directors has approved the resumption of the Endako mill expansion project in British Columbia, which was postponed in December 2008. The resumption is subject to approval by the joint venture partner. The expansion project will raise the mill's ore-processing capacity to 55,000 tons from 31,000 tons per day and reduce cash costs per pound of molybdenum produced. The Company's 75% share of total project capital expenditures are currently estimated at approximately $252 million (including $43 million spent on the project in 2008 and $10 million spent in the first half of 2009). Project completion is expected in 2011.

The company’s address is 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON M5H 2Y4, (416) 860-1438, fax: 416-860-0813, email: [email protected].