Thompson Creek provides update on capital expenditure plans
05 Dezember 2008 - 1:00PM
PR Newswire (US)
NYSE: TC TSX: TCM, TCM.WT Frankfurt: A6R TORONTO, Dec. 5
/PRNewswire-FirstCall/ -- Thompson Creek Metals Company Inc. (the
"Company"), one of the world's largest publicly traded, pure
molybdenum producers, today announced a reduction in planned
capital expenditures including the postponement of the completion
of the expansion project at its 75%-owned Endako Mine. "Given the
sharp decline in the molybdenum price, Thompson Creek has decided
to curtail planned capital expenditures. This initiative to
conserve cash leaves Thompson Creek with a strong cash position and
minimal debt of $18.1 million in equipment loans and puts the
Company in an excellent position to weather the downturn in
worldwide economic activity," said Kevin Loughrey, Chairman and
Chief Executive Officer. "While work on the Endako expansion
project will be suspended, we will leave the project in a position
to start up again when the molybdenum market improves. We will
complete certain activities already underway at the mine site and
the purchase and storage of equipment on which we have already made
partial payment. All or some portion of the equipment purchased may
be funded through the use of equipment financing." The Company
estimates it will have cash balances of approximately $225 million
on December 31, 2008. The Company also has available an undrawn $35
million revolving bank credit facility. Capital spending in 2009 is
expected to be $69 million, including $36 million for sustaining
capital expenditures and $33 million for the Company's share of
Endako expansion capital expenditures. The Company's share of
Endako expansion capital expenditures in 2008 is expected to be
approximately $37 million. Postponement of the Endako expansion is
the second initiative by Thompson Creek to reduce planned capital
expenditures until market conditions improve. The Company announced
postponement of the Davidson Project on November 6, 2008. Prior to
these changes, Thompson Creek was planning capital expenditures of
$600 million over three years 2008 to 2010 including $280 million
for its share of the Endako expansion, $109 million for the
Davidson Project and the remainder for maintenance capital
expenditures. Of the $600 million of capital expenditures,
approximately $300 million had originally been planned for 2009.
Thompson Creek expects to achieve its previously announced 2008
operational guidance for molybdenum sales of 22 million pounds,
molybdenum production of 25 to 26 million pounds and average cash
costs to produce molybdenum oxide of $7.30 per pound (assuming a
US/Canada exchange rate of 1.20 for the fourth quarter of 2008).
Management currently is not revising its production guidance of
31.5 to 34 million pounds of molybdenum in 2009. However, the
Company can adjust its 2009 production plans promptly if market
conditions worsen. The Company is currently assessing potential
impairments of goodwill and other assets. If the current weak
market conditions continue through the end of this year, the
Company may be required to record impairments against goodwill and
potentially against other assets. About Thompson Creek Metals
Company Inc. Thompson Creek Metals Company Inc. is one of the
largest publicly traded, pure molybdenum producers in the world.
The Company owns the Thompson Creek open-pit molybdenum mine and
mill in Idaho, a metallurgical roasting facility in Langeloth,
Pennsylvania and a 75% share of the Endako open-pit mine, mill and
roasting facility in northern British Columbia. Thompson Creek is
also evaluating two high-grade underground molybdenum deposits, the
Davidson Deposit near Smithers, B.C., and the Mount Emmons Deposit
near Crested Butte, Colorado. The Company has approximately 800
employees. Its principal executive office is in Denver, Colorado,
and it has other executive offices in Toronto, Ontario and
Vancouver, British Columbia. More information is available at
http://www.thompsoncreekmetals.com/. Cautionary Note Regarding
Forward-Looking Statements
---------------------------------------------------- This news
release contains "forward-looking information" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation which may
include, but is not limited to, statements with respect to the
timing and amount of estimated future production. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Thompson Creek and/or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include those factors
discussed in the section entitled "Risk Factors" in Thompson
Creek's current annual information form which is available on SEDAR
at http://www.sedar.com/ and is incorporated in its Annual Report
on Form 40-F filed with the United States Securities and Exchange
Commission which is available at http://www.sec.gov/. Although
Thompson Creek has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and Thompson Creek does not undertake to update any such
forward-looking statements, except in accordance with applicable
securities laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers are cautioned not to place undue
reliance on forward-looking statements. Readers should refer to
Thompson Creek's current annual information form which is available
on SEDAR at http://www.sedar.com/ and is incorporated in its Annual
Report on Form 40-F filed with the SEC which is available at
http://www.sec.gov/ and subsequent continuous disclosure documents
available at http://www.sedar.com/ and http://www.sec.gov/ for
further information on mineral reserves and mineral resources,
which is subject to the qualifications and notes set forth therein.
CONTACT: Wayne Cheveldayoff, Director of Investor Relations,
Thompson Creek Metals Company Inc., Tel.: (416) 860-1438, ; Dan
Symons, Renmark Financial Communications Inc., Tel.: (514)
939-3989, DATASOURCE: Thompson Creek Metals Company Inc. CONTACT:
Wayne Cheveldayoff, Director of Investor Relations, Thompson Creek
Metals Company Inc., Tel.: (416) 860-1438, ; Dan Symons, Renmark
Financial Communications Inc., Tel.: (514) 939-3989,
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