https://www.miningweekly.com

Thompson Creek widens Q3 loss, softer copper outlook weighs on stock

10th November 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Copper and gold producer Thompson Creek Metals has reported a wider net loss for the three months ended September, which was mainly impacted by unrealised noncash foreign exchange losses on intercompany notes.

For the three months ended September 30, the miner reported a net loss of $60.9-million, or $0.28 a diluted share, compared with a net loss of $11.1-million, or $0.05 a diluted share, for the third quarter of 2014.

Excluding special items on the balance sheet, the adjusted net loss was $5-million, or $0.02 a diluted share – on par with analyst forecasts, compared with adjusted net income of $38.3-million, or $0.17 a share, in the third quarter of 2014.

Consolidated revenues for the period fell 38% to $141.7-million, compared with $229.3-million in the third quarter of 2014.

Copper and gold sales contributed $113-million in revenue in the quarter, compared with $100.7-million in the third quarter of 2014.

During the third quarter, the company had completed five shipments of copper and gold concentrate from Mount Milligan, in British Columbia, and recorded five sales, compared with only three shipments and three sales in the comparable quarter of 2014.

Payable output at the Mount Milligan mine was 16.4-million pounds of copper and 53 791 oz of gold, compared with payable output of 16.3-million pounds of copper and 60 366 oz of gold in the third quarter of 2014.

Copper and gold sales rose significantly to 24.4-million pounds of copper and 75 451 oz of gold during the period under review, as the Mount Milligan mine ramped up to full production. The average realised copper price fell 30% year-on-year to $2.09/lb and the average realised gold price fell 3% year-on-year to $926/oz.

The company had lowered its 2015 unit cash cost guidance on a by-product basis from the previous estimates of $0.70/lb to $0.90/lb, to $0.55/lb and $0.75/lb of copper.

Thompson Creek also lowered the top-end of its copper guidance to between 70 000 lb and 80 000 lb, while it lifted the lower-end of its full-year gold guidance to between 210 000 oz and 220 000 oz of gold.

Meanwhile, molybdenum sales were $23-million, compared with $124.3-million a year earlier, as the Endako mine, in British Columbia, and the Thompson Creek mine, in Idaho, remained on care and maintenance pending higher molybdenum prices.

Thompson Creek had completed significant maintenance at the Langeloth metallurgical facility on time and within budget in the quarter under review. The scheduled maintenance, which occurred every few years, allowed the company to continue providing tolling services and upgrading purchased molybdenum concentrates for sale in the metallurgical and chemical markets.

Thompson Creek sold molybdenum from inventory produced at the mines in 2014 and molybdenum sourced from third parties.

Sales for the September quarter reached 2.9-million pounds at an average realised price of $7.86/lb, compared with an average realised price of $13.94/lb for the third quarter of 2014.

In 2015, the molybdenum business was expected to generate positive cash flow before capital expenditure of about $21-million to $23-million, net of care-and-maintenance costs, at the Thompson Creek and Endako molybdenum mines, enabling the company to maintain the optionality of its molybdenum business.

Thompson Creek also advised that it had engaged Moelis & Company and BMO Capital Markets to assist the board in evaluating strategic and financial alternatives, including debt refinancing and restructuring, new capital transactions and asset sales.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.122 0.163s - 88pq - 2rq
Subscribe Now