NEW YORK Thompson Creek
Metals Co. Inc. posted a marginal first-quarter profit and
year-on-year decrease in revenue due to lower molybdenum sales
The Denver-based companys
net income for the three months ended March 31 totaled
$900,000, down 18.2 percent from $1.1 million a year earlier,
on revenue that fell 4.3 percent to $108.7 million from $113.6
However, operational performance
improved, with molybdenum production rising 74 percent to 7.7
million pounds from 4.4 million pounds a year earlier.
Total sales of molybdenum
increased 18.5-percent to 8.8 million pounds from 7.4 million
pounds, while production costs decreased 54-percent to $5.91
per pound from $12.95 per pound.
The companys bottom line
was impacted by a 19.5-percent drop in the average realized
molybdenum sales price to $11.87 per pound from $14.74 per
pound in the first quarter of 2012.
"The moly market struggling to
get its legs out from underneath itself is probably the bad
news for the quarter," Thompson Creek chairman and chief
executive officer Kevin Loughrey said in a conference call with
Operational improvements at the
Thompson Creek Mine were attributed to planned mine pit
sequencing and mining in a higher-grade section, together with
the suspension of waste-stripping activity.
The company will consider a
decision "to resume stripping or put the mine on care and
maintenance as market conditions warrant," executive vice
president and chief financial officer Pamela L. Saxton said
during the call.
While production at the Endako
Mine also improved on a year-on-year basis, output was
negatively impacted by issues caused by frozen water at the
sites tailings pond beginning in December 2012 (
amm.com, Feb. 25).
"The company has completed
initial remediation work and instituted tailings management
procedures to address these issues to ensure sufficient water
supply to the mill for future winter seasons beyond 2013," it
Meanwhile, construction of the Mount Milligan copper-gold
project has progressed to the 89-percent completion mark.
Commissioning and start-up are expected in August 2013,
followed by commercial production in the fourth quarter of