Thompson Creek Reported On 2014 Production Results
DENVER, CO - Thompson Creek Metals Company Inc. reported fourth quarter and full year 2014 production and sales results. Total concentrate production for Mount Milligan for the quarter ended December 31, 2014 was 36.3 thousand dry tonnes, with 18.0 million pounds of payable copper and 41.0 thousand ounces of payable gold. Total concentrate production for Mount Milligan for the year ended December 31, 2014 was 125.4 thousand dry tonnes, with 64.6 million pounds of payable copper and 177.6 thousand ounces of payable gold. Molybdenum production from Thompson Creek and Endako mines was 4.3 million pounds for the quarter ended December 31, 2014 and 26.3 million pounds for the year ended December 31, 2014.
"We achieved strong operating performance in 2014, meeting copper and total molybdenum production guidance and coming within approximately 4% of gold production guidance, while operating our mines in a safe and environmentally responsible manner," said Jacques Perron, President and Chief Executive Officer of Thompson Creek.
For the fourth quarter of 2014, the Company produced 18.0 million pounds of payable copper, compared to 16.3 million pounds in the third quarter, an increase of approximately 10%. Payable gold production for the fourth quarter of 2014 was 41.0 thousand ounces, compared to 60.4 thousand ounces in the third quarter, a decrease of approximately 32%, primarily due to lower gold grade and recovery. For the month of December, average daily mill throughput was 44,734 tonnes per day (tpd) and from December 16th through 31st it was 48,426 tpd, which represents approximately 80% of design capacity. Mill throughput during the first two weeks of January has been impacted by winter weather conditions causing bridging of frozen ore in and above the feeders to the mill however, since January 16 average daily mill throughput has been above 50,000 tpd.
During the fourth quarter of 2014, the Company made three shipments of copper and gold concentrate under its sales agreements and received provisional payments for all three of such shipments.
After one year of operating the Mount Milligan plant, the Company does not expect to be able to reach 60,000 tpd on a consistent basis without adding additional crushing capacity. Grinding circuit profiles were completed and additional modeling was conducted to understand the potential shortfall in throughput and determine optional process modifications required to reach 60,000 tpd. As a result, the Company has determined that a secondary crushing circuit at Mount Milligan Mine will be necessary to consistently reach 60,000 tpd, but due to current metal prices, construction will not commence until market conditions improve.
In the first half of 2015, the detailed engineering phase is expected to be completed and commitments are expected to be made for the long lead items. The final capital cost estimate for the project will be determined once the detailed engineering is completed and it is expected to be near the high end of the previously announced range of $50 - $75 million. Construction is expected to commence once the copper price environment recovers and it is estimated that it will take approximately 18 months to complete. Temporary crushing will be utilized during 2015 and, as a result, management expects to reach approximately 60,000 tpd by year-end 2015.
"Given the current market conditions, we do not believe it would be prudent to move forward with the capital investment as this time," said Perron. "We will take this opportunity to optimize the design and cost estimate for the secondary crusher. Despite some challenges with the winter conditions at the start of this year, we remain focused in our efforts to complete the ramp-up phase at Mount Milligan and are confident that we will reach a rate of approximately 60,000 tpd by year-end 2015. Once the secondary crusher is installed and commissioned, throughput is expected to be approximately 62,500 tpd," added Perron.
The Company produced a total of 4.3 million pounds of molybdenum, compared to 7.2 million pounds in the fourth quarter of 2013. Total molybdenum production for 2014 was 26.3 million pounds, compared to 29.9 million pounds in 2013. As previously announced, effective December 31, 2014, the Thompson Creek Mine was placed on care and maintenance and the Endako Mine has been placed on temporary suspension. Thompson Creek Mine will also be conducting limited stripping activities for Phase 8 during 2015.