New Mine Plan at the Thompson Creek Mine Expected to Achieve Significant Cost Savings
NYSE: TC
TSX: TCM
DENVER, CO, Oct. 3, 2012 /PRNewswire/ – Thompson Creek Metals Company Inc.
(“Company” or “Thompson Creek”), a growing, diversified, North American
mining company, announced that, effective today, it is suspending
stripping activity associated with the next phase of production at the
Thompson Creek Mine, referred to as Phase 8. Mining operations will
continue as planned through 2014 in the current phase of production at
the Mine, referred to as Phase 7. As a result of this change, between
now and 2014, the Company expects to save approximately $100 million in
operating costs and $8 – $9 million in capital expenditures, as well as
reduce the Mine workforce by approximately 100 workers.
Kevin Loughrey, Chairman and Chief Executive Officer of Thompson Creek,
said, “As a result of continuing weakness and uncertainty in the world
economy, we have decided to reduce our costs, strengthen our balance
sheet, and conserve cash. This will allow for greater certainty in
accessing our existing financings in order to complete the development
of Mt. Milligan, while we preserve the assets at Thompson Creek until
market conditions strengthen.”
The Company announced that it would expect to restart stripping of Phase
8 of the mine plan when market conditions warrant. The Thompson Creek
Mine is expected to produce 20 – 22 million pounds of molybdenum in
2013 and 17 – 19 million pounds in 2014. Assuming stripping is not
restarted prior to 2015, cash costs are expected to be approximately
$4.75 – $5.75 per pound in 2013 and $5.00 – $6.00 per pound in 2014.
If stripping has not recommenced by 2015, we expect that the mine would
be placed on care and maintenance at such time. If the decision to
recommence stripping is made prior to 2015, guidance with respect to
costs will be revised accordingly, but we expect that molybdenum
production guidance should not be affected.
The Company’s Langeloth roasting facility in Pennsylvania will continue
to treat material from the Thompson Creek Mine, third party purchased
concentrates and tolled molybdenum concentrates.
A conference call to discuss the new mine plan has been scheduled on
Thursday, October 4, 2012 at 4:30 p.m. Eastern Time.
To participate in the call, please dial 1 (647) 427-7450 or 1 (888)
231-8191 approximately five minutes prior to the start of the call. A
live audio webcast of the conference call will be available at www.newswire.ca/en/event and www.thompsoncreekmetals.com.
An archived recording of the conference call will be available at 1
(416) 849-0833 or 1 (855) 859-2056 (access code 37449068#) from 7:30
p.m. Eastern Time on October 4, to 11:59 p.m. Eastern Time on October
11. An archived recording of the webcast will also be available at
Thompson Creek’s website.
About Thompson Creek Metals Company Inc.
Thompson Creek Metals Company Inc. is a growing, diversified North
American mining company. The Company produces molybdenum at its
100%-owned Thompson Creek Mine in Idaho and Langeloth Metallurgical
Facility in Pennsylvania and its 75%-owned Endako Mine in northern
British Columbia. The Company is also in the process of constructing
the Mt. Milligan copper-gold mine in central British Columbia, which is
expected to commence production in 2013. The Company’s development
projects include the Berg copper-molybdenum-silver property and the
Davidson molybdenum property, both located in central British
Columbia. Its principal executive office is in Denver, Colorado and
its Canadian administrative office is in Vancouver, British Columbia.
More information is available at www.thompsoncreekmetals.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains ”forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 , Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934 and applicable Canadian securities
legislation. These forward-looking statements generally are identified
by the words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “future,” “plan,” “may,” “should,” “will,” “would,” “will
be,” “will continue,” “will likely result,” and similar expressions.
Our forward-looking statements include statements with respect to:
future operating plans and goals, including the new Thompson Creek Mine
operating plan; future financial or operating performance of the
Company or its subsidiaries and its projects; future production, sales,
cash costs, inventory, capital expenditures and exploration
expenditures; future earnings and operating results; anticipated or
future financings; expected concentrate and recovery grades; statements
as to the projected development of Mt. Milligan and other projects,
including expected production commencement dates; Mt. Milligan
development costs; and future molybdenum prices.
Where we express an expectation or belief as to future events or
results, such expectation or belief is expressed in good faith and
believed to have a reasonable basis. However, our forward-looking
statements are based on current expectations and assumptions that are
subject to risks and uncertainties which may cause actual results to
differ materially from future results expressed, projected or implied
by those forward-looking statements. Important factors that could cause
actual results and events to differ from those described in such
forward-looking statements can be found in the section entitled “Risk
Factors” in Thompson Creek’s Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and other documents filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com. Although we have attempted to identify those factors that could cause
actual results or events to differ from those described in such
forward-looking statements, there may be other factors that cause
results or events to differ from those anticipated, estimated or
intended. Many of these factors are beyond our ability to control or
predict. Given these uncertainties, the reader is cautioned not to
place undue reliance on our forward-looking statements. We undertake no
obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events, or otherwise.
Pamela Solly
Director, Investor Relations
Thompson Creek Metals Company Inc.
Tel: (303) 762-3526
psolly@tcrk.com
Christine Stewart
Renmark Financial Communications Inc.
Tel: (416) 644-2020
cstewart@renmarkfinancial.com
SOURCE Thompson Creek Metals Company Inc.
