Portugal’s mining strategy may favour copper over lithium
Portugal already has the largest copper mine in the European Union, operated by Lundin Mining.
Thompson Creek Metals Company Inc. (“Company” or “Thompson Creek”), a growing, diversified North American mining company, today announced financial results for the three and six months ended June 30, 2011, prepared in accordance with United States generally accepted accounting principles (“US GAAP”). All dollar amounts are in United States (“US”) dollars unless otherwise indicated.
Financial Highlights:
Net income for the first six months of 2011 was $245.7 million, or $1.48 per basic and $1.41 per diluted share, up 92.6% from $127.6 million, or $0.91 per basic and $0.86 per diluted share for the same period in 2010. Net income for the first six months of 2011 included a non-cash unrealized gain on common share purchase warrants of $126.4 million, or $0.76 per basic and $0.72 per diluted share. Net income for the first six months of 2010 included a non-cash unrealized gain on common share purchase warrants of $50.3 million, or $0.36 per basic and $0.34 per diluted share.
Non-GAAP adjusted net income for the first six months of 2011 (excluding the non-cash unrealized gain on the warrants) was $119.3 million, or $0.72 per basic and $0.68 per diluted share, up 54.3% from $77.3 million, or $0.55 per basic and $0.52 per diluted share for the same period in 2010.
The Company’s net income continues to be affected by the previously disclosed requirements under US GAAP to account for the Company’s outstanding common stock warrants as a derivative liability, with changes in the fair market value recorded in net income.
“Thompson Creek achieved excellent financial performance for the second quarter and first half of the year, with significant increases in revenue, cash flow from operations and adjusted net income,” said Kevin Loughrey, Chairman and Chief Executive Officer of Thompson Creek. “For the first half of 2011, the Company produced 20.3 million pounds of molybdenum and sold 19.0 million pounds of molybdenum from its mines for an average realized molybdenum sales price of $17.33, up 10.5% from $15.68 in the first half of 2010. While we expect our production to be lower and our cash costs to be higher in the second half of the year, the Company is on track to achieve its previously announced production and cash cost guidance for the year,” added Mr. Loughrey.
The Company also announced that the capital expenditures for the mill expansion project at the Endako mine may be approximately 15% higher than the previously announced revised estimate of C$550 million (100%) and the start-up of the new mill to be in the first quarter of 2012. “We look forward to the near-term completion of the Endako state-of-the-art mill facility and are confident that our liquidity and capital resources are sufficient to complete this project, as well as the Mt. Milligan copper-gold project,” added Mr. Loughrey.
