Thompson Creek Metals Company Inc. (TSX:TCM; NYSE:TC) has written down $530.5 million of the value of its Endako molybdenum mine in B.C.’s northern interior.
The Colorado-based diversified miner released its fourth-quarter 2012 results and 2012 annual results yesterday. The company posted a fourth-quarter net loss of $484.4 million and an annual net loss $546.3 million.
In a statement, Thompson Creek chairman and CEO Kevin Loughrey called 2012 a “challenging” year. He said that during 2012, the company raised additional funding to ensure the completion of its Mount Milligan project.
He added that the company took a “significant fixed asset writedown” at Endako and that the Endako management team “is working diligently to address its operational challenges, which are expected to continue through the winter months.”
The company said the “significant decline” in molybdenum prices in 2012 plus operational challenges at the company’s two mines caused it to evaluate potential writedowns.
Thompson Creek said it recognized a non-cash goodwill impairment charge of $47.0 million in the third quarter of 2012 prior to taking the write down at Endako on the company’s share of property, plant, equipment and development assets.
As of press time, the company’s stock was down approximately 5% from yesterday’s pre-announcement levels.
By Jenny Wagler, Business in Vancouver
