LandKeepers News Archive
Thompson Creek Metals postpones Davidson Project
November 06 2008 | News Articles | Smithers Interior News
By Todd Hamilton – Smithers Interior News
Published: November 06, 2008 2:00 PM
Updated: November 06, 2008 2:51 PM
Thompson Creek Metals, known locally as Blue Pearl, announced today it will postpone the controversial Davidson molybdenum project in Smithers.
“Given current economic conditions, the company has decided to postpone development of the Davidson Project until economic conditions improve,” the company stated in its third quarter 2008 financial results press release.
The Davidson project postponement comes despite the company posting a record $100.6 million net income in the third quarter.
“Thompson Creek recorded strong operating and financial performance in the third quarter with molybdenum production up 5.1% from the second quarter and the Company’s revenues, cash flow and net income all at record quarterly levels,” said Kevin Loughrey, Chairman and Chief Executive Officer.
“However, as a result of the worldwide financial crisis and economic downturn in recent weeks, there is significant uncertainty regarding the near-term demand and price outlook for molybdenum. Given the decline in the molybdenum price since September, the fourth-quarter average sales price for molybdenum is expected to be considerably lower than the company’s third-quarter average realized sales price of US$32.85 per pound.
“Thompson Creek is in the fortunate position of having a strong balance sheet, with working capital of $355.6 million, including $151.7 million in cash balances, and almost no debt as at September 30, 2008,” Mr. Loughrey said.
“In addition, due to higher predicted ore grades at the Thompson Creek Mine, the Company is expecting to benefit from a substantial increase in total molybdenum production in 2009 to a range of 31.5 to 34 million pounds with average per-pound cash costs below those experienced in 2008.
“Nevertheless, given the sudden change in economic climate, the Company is in the process of reviewing and revising future capital expenditures, development projects and operating plans to ensure that adequate working capital levels are maintained,” Mr. Loughrey added.
See the Nov. 12 issue of The Interior News for full details and reaction.
http://www.bclocalnews.com/news/34050864.html
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