NEW YORK Thompson Creek
Metals Co. Inc. has posted a 2012 net loss of $546.3 million,
in contrast to net income of $292.1 million the previous year,
with the companys results "dominated" by a $530.5-million
asset write-down associated with difficulties at its Endako
The Denver-based company
recorded consolidated revenues of $99.4 million for the three
months ended Dec. 31, down 14.8 percent from $116.7 million in
the year-ago period. The quarter also saw a net loss of $484.4
million in contrast to net income of $800,000 a year
Full-year 2012 revenues stood at
$401.4 million, down 40 percent from $669.1 million in
The companys earnings were
"dominated by the impairment we took in the fourth quarter,"
chairman and chief executive officer Kevin Loughrey said in a
Feb. 25 conference call.
The impairment came about as the
Endako Mine began to experience issues caused by frozen water
in the sites tailings pond in December 2012.
"Endako has been unable to feed
sufficient water from the tailings pond to the new mill on a
consistent basis, which has negatively impacted its rate and
level of throughput of mined material to the mill and thus its
production of molybdenum," the company said.
While Thompson Creek has made
modifications to the Endako Mine which are expected to prevent
a recurrence of these issues, the company warned that the
issues "will have a negative effect on production and financial
results from the Endako Mine in the first quarter of 2013."
The company produced 22.4
million pounds of molybdenum in 2012 at its Endako and Thompson
Creek sites and forecast total production of 27.5 million to
30.5 million in 2013.
Loughrey added that a lull in
global molybdenum demand and pricing had affected the
companys bottom line.
"The moly market continues to be
disappointing for us, as we dont have the robust demand
from the steel sector that we had anticipated," Loughrey said.
"Demand in China appears to be picking up now, but in 2012 it
was not occurring at the rate that we had expected either. And
Western Europe continues to be a significant problem as the
economies there struggle."
However, the company said that
its Mount Milligan copper-gold project remains on schedule,
with commissioning and start-up expected in the third quarter
of 2013 and commercial production of copper and gold expected
in the fourth quarter of 2013.
Thompson Creek added that it
will provide detailed production and cash cost guidance for
Mount Milligan once it is operational, but noted that the
sites average annual production is expected to be highest
during the first full six years of production (approximately 89
million pounds of copper and 262,000 ounces of gold in
concentrate) compared with its annual life-of-mine