NEW YORK Thompson Creek
Metals Co. Inc.s Mount Milligan copper-gold project in
British Columbia is on schedule to start up in the third
quarter of 2013.
. . . is 95 percent complete, procurement is 95
percent complete and construction is 44 percent complete," the
Denver-based molybdenum producer said in commentary released
with its first-quarter results.
Mount Milligan, which is
expected to produce about 81 million pounds of copper and
194,000 ounces of gold annually, is projected to cost between
Canadian $1.4 billion and C$1.5 billion ($1.41 billion to $1.51
billion), up from initial estimates of C$1.27 billion due to
cost overruns (AMM, Feb. 29).
The companys net income
plunged to $1.1 million in the first quarter from $128.9
million in the same period last year on revenue that slid 45
percent to $113.6 million. "The first-quarter results were
impacted by significantly lower production, higher unit costs,
higher unit depreciation and lower sales volumes and average
realized prices compared to the first quarter of 2011," the
Skewing the comparison was a
non-cash unrealized gain on common stock purchase warrants of
$66 million that boosted Thompson Creeks net income in
the first quarter of last year.
Molybdenum sales prices averaged
$14.74 per pound during the first quarter, down 15.2 percent
from $17.39 a year earlier, while cash costs more than doubled
to $12.95 per pound. Molybdenum sales fell to 4.9 million
pounds, less than half the 10.1 million pounds recorded a year
ago as production fell to 4.4 million pounds from 10.3 million
pounds due to the ramp-up of the recently completed mill at the
companys Endako Mine in British Columbia (AMM,
"Production is expected to be
higher in the second half of 2012 due to the anticipated
ramp-up of production from the newly completed mill, together
with the improved ore accessibility at the Thompson Creek
Mine," the company said. It reiterated that it expects to meet
its previously issued production guidance for 2012 of between
26 million and 28 million pounds.