NYSE: TC
TSX: TCM, TCM.WT
Frankfurt: A6R
'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
'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
Capital spending in 2009 is expected to be
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
Prior to these changes, Thompson Creek was planning capital expenditures of
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
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
Cautionary Note Regarding Forward-Looking Statements
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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 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 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 www.sedar.com and is incorporated in its Annual Report on Form 40-F filed with the SEC which is available at www.sec.gov and subsequent continuous disclosure documents available at www.sedar.com and www.sec.gov for further information on mineral reserves and mineral resources, which is subject to the qualifications and notes set forth therein.
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SOURCE Thompson Creek Metals Company Inc.