Thompson creek investor_presentation

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Thompson creek investor_presentation

  1. 1. A Growing, Diversified g,North American Mining Company Investor Presentation May 17, 2012
  2. 2. Cautionary StatementsThis document contains ‘‘forward-looking statements’’ within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, asamended, Section 21E of the Securities Act of 1934, as amended and applicable Canadian securities legislation. These forward-looking statements generally are identified by the words"believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similarexpressions. Our forward looking statements include, without limitation: estimates of future capital expenditures and other cash needs for operations, including with respect to thedevelopment of Mt Milligan and expectations as to the funding thereof; statements as to the projected development of Mt Milligan and other projects including expected production Mt. Milligan, Mt. projects,commencement dates; statements as to the expected mill capacity at Endako and statements regarding future earnings, and the sensitivity of earnings to molybdenum prices; estimates offuture production costs and other expenses for specific operations and on a consolidated basis; estimates of future mineral production and sales for specific operations and on aconsolidated basis; estimates of mineral reserves and resources, including estimated mine life and annual production; statements with respect to the future financial or operatingperformance of Thompson Creek or its subsidiaries and its projects; and statements with respect to the costs and timing of future exploration projects and the development of new depositsincluding the Berg property and the Davidson property.Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, ourforward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from futureresults expressed, projected or implied by those f forward-looking statements. Important f factors that could cause actual results and events to differ f ff from those described in such fforward-looking statements can be found in the section entitled ‘‘Risk Factors’’ in Thompson Creek’s 2011 Form 10-K, Quarterly Report on Form 10-Q for the three months ended March 31, 2012,and other documents filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com. Although we have attempted to identify those factors that could cause actual results or events todiffer from those described in such forward-looking statements, there may be other factors that cause results or events to differ from those anticipated, estimated or intended. Many of thesefactors are beyond our ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake noobligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: This presentation uses the terms “Measured”, “Indicated” and“Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange g q y g gCommission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot beassumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form thebasis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be convertedinto Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.All currency figures in US$, except where noted. 2
  3. 3. Company Overview (NYSE: TC; TSX: TCM)The Company Strong North American Portfolio of Assets Growing, diversified North HOWARDS PASS Yukon American mining company MAZE LAKE Nunavut Reserves i l d R include MT. MT MILLIGAN British Columbia Mo Molybdenum DAVIDSON Cu Copper British Columbia BERG Au Gold British Columbia CANADA Ag Silver CANADIAN LANGELOTH OFFICE METALLURGICAL Vancouver FACILITY USA Invested in our operations ENDAKO MINE Pennsylvania British Columbia State-of-the-art new mill THOMPSON Operations at Endako CREEK MINE Construction & Idaho Development HEADQUARTERS Denver Exploration Properties Building new mines Corporate Offices Mt. Milligan 2013 3
  4. 4. TC Stock Price, Moly Price vs. S&P 500November 2006 – April 2012 4
  5. 5. Pro Forma Share Structureas of March 31, 2012 TC/TCM Common Shares (US$) Recent share price1 $3.56 Current market cap $0.6 billion 52-week low/high $3.56/$11.11 Basic shares outstanding 168.1 million Share options, restricted/performance shares p p 4.3 million Warrants – former Terrane Metals2 0.4 million tMEDS – maximum shares upon conversion 47.4 million Fully diluted shares outstanding 220.2 million Cash Balance C hB l $162.7 illi $162 7 million Debt $373.2 million Listings: NYSE:TC, TSX:TCM, TSX-V:TRX.WT1 Updated May 17, 2012.2 Exercise provides f an offset of th warrant exercise price against th cash consideration th t would otherwise b payable t th h ld E i id for ff t f the t i i i t the h id ti that ld th i be bl to the holders upon exercise of a warrant of C$0 05 i f t f C$0.05 with an expiration date of 6/23/12. 5
  6. 6. First Quarter 2012 Financials US$ millions except as noted First Quarter 2012 Revenue $113.6 Operating (Loss) Income $(16.5) $(16 5) Operating Cash Flow $3.1 Net Income $1.1 Adjusted Net Income $1.21 Net Income per share Basic $0.01/sh Diluted $0.01/sh Adjusted Net Income per share Basic $0.01/sh1 Diluted $0.01/sh1 Molybdenum Production 4.4 M lbs Production Cash Costs3 $ 12.95/lb Average R li d P i A Realized Price $ 14.74/lb 14 74/lb Cash + S-T Investments (03/31/12) $162.7 Total debt (03/31/12)4 $373.21 Non-GAAP measure. Excludes $0.1 million non-cash loss related to warrants.2 Non-GAPP measure. Excludes $66.0 million non-cash gain related to warrants.3 Non-GAAP measure. See Form 10-Q for the quarter ended March 31, 2012 additional information.4 Includes capital leases. 6
  7. 7. Cash Capital Expenditures in millions of US Dollars Operations Endako Expansion1 Mount Milligan1, 2 Total 2011► $65 $221 $409 $695 actual 2012► $35- $750- $868- $83 estimate3 $40 $825 $948 2013► $15- $15 $190- $190 $205- $205 estimate $20 $245 $265 Q112► $7 $40 $141 $188 actual1 Excludes capitalized interest and debt issuance costs. Costs for the remainder of 2012 (04/12 through 12/12) and 2013 assume a CAD/USD exchange rate of 1.00.2 Includes amounts for equipment purchased under capital leases, as well as commissioning and first-fill parts to start the mill.3 Includes Q1 2012 actual cash expenditures. 7
  8. 8. Pro-Forma Cash Capital Expenditures Funding As of March 31, 2012 in millions of US dollars NEW $407 Remaining Cash net proceeds Capital Q2 2012 C$1.1Billion ■ Mt. Milligan after fees and estimated transaction costs thru Q4 20131 project cash spent j t h t ■ Maintenance HIGH since inception thru 3/31/12 ■ Endako Expansion ■ Funding Sources 1,025 ■ Additional Funding 212 2 LOW 3 tMEDS 885 929 3 799 195 Notes 172 $1,067 new t t l total funding 124 in place 201 excludes cash flow from operations 163 43 53 43 Cash on Net revolver 4 Equipment Royal Gold New Senior Tangible Low estimate High hand availability financing proceeds Notes Equity Units estimate1 Assumes CAD/USD exchange rate of 1 00 1.00.2 Excludes additional proceeds from over allocation position.3 Includes Mt. Milligan working capital of approximately $30 million (first fills, spare parts, & commissioning parts) and a contingency of $137 million at the high estimate ($7 million contingency at the low estimate). Assumes an independent third party lease arrangement for the permanent camp at Mt. Milligan.4 Net revolver availability defined as availability under R/C facility less minimum liquidity. Minimum liquidity is currently defined as (i) the amount of cash on hand and (ii) availability under the R/C and (iii) expected payment from Royal Gold that will be received in the next quarter. 8
  9. 9. Outlook Molybdenum Production & Cash Costs Mo Production in millions of pounds 33 30-34 30 34 Endako Mine 28 26-28 8 11-12 Thompson Creek Mine 7 25 10 11 10-11 21 19-22 16-17 2010 2011 2012 2013 actual actual guidance guidance Cash Costs $6.07 $7.94 $7.75–$9.00 $6.75–$7.75 US dollars per pound Thompson Creek $5.20 $6.66 $7.50–$8.50 $6.00–$7.00 Endako1 $8.89 $8 89 $11.86 $11 86 $8.25–$9.25 $8 25–$9 25 $8.00–$9.00 $8 00–$9 001 Guidance numbers for Endako assume a USD/CAD exchange rate of 1.00. 9
  10. 10. Thompson Creek Mine – IdahoMo Production16 -17 million pounds in 2012 (estimate)Cash Costs (Mo oxide)$7.50 - $8.50 per pound in 2012 (estimate)Proven and Probable Mineral Reserves1(Contained Mo) 15-Year Mine Life220.9 million pounds Mo2 (Based on proven and probableAverage grade of 0.077% Mo reserves) In operation since 1983Measured and Indicated Mineral Resources(Contained Mo)54 3 million pounds Mo354.3Average grade of 0.046% Mo1 The Mineral Reserve estimates for the Thompson Creek Mine set out in the table above are as of December 31, 2011 and were prepared by the Thompson Creek Mine staff, have been verified by John M. Marek, Registered Professional Engineer, of IMC, who is a Qualified Person under NI 43-101, and utilize a cut-off grade of 0.030% Mo. Data verification and block model assembly was completed by Michael J. Lechner of Resource Modeling Inc. The NI 43-101 Technical Report on the Mineral Resources and Reserves of the Thompson Creek molybdenum mine is dated February 9, 2011 and filed on SEDAR on February 24, 2011. 20112 The Mineral Reserve at the Thompson Creek mine was estimated using an average long-term molybdenum price of $12.00 per pound. The Thompson Creek mine has limited ability to expand the pit due to limitations on tailing capacity. Therefore, the final pit design reflects the maximum ore capacity that can be produced in the foreseeable future.3 The Mineral Resources for the Thompson Creek Mine were estimated using optimized pit shells at a molybdenum price of $15.00 per pound. The Mineral Reserves are not included in the Mineral Resources. The Qualified Person, as defined under NI 43-101, for the estimation of Mineral Resources was John M. Marek, P.E., of IMC. The Thompson Creek Mine Mineral Resource estimate is based on a NI 43-101 technical report prepared for us, entitled "Technical Report Thompson Creek Molybdenum Mine" dated February 9, 2011 and filed on SEDAR on February 24, 2011. 10
  11. 11. Endako Mine – British ColumbiaMo Production14-15 million pounds in 2012 (estimate)(10-11 million Thompson Creek’s 75% share)Cash Costs (Mo oxide)$8.25 – $9.25 per pound in 2012 (estimate)Proven and Probable Mineral Reserves1(Contained Mo) 18-Year Mine Life303.9 million pounds Mo2 (Based on proven and probableAverage grade of 0.046% Mo reserves) In operation since 1965Measured and Indicated Mineral Resources(Contained Mo)38 0 million pounds Mo338.0Average grade of 0.030% Mo1 The Mineral Reserve estimate for the Endako Mine set out in the table above are as of December 31, 2011 and was prepared by the Endako Mine staff, has been verified by Bob Jedrzejczak P. Eng, Mine Superintendent of the Endako Mine, who is a Qualified Person under NI 43-101, and utilized a cut-off grade of 0.018% Mo. The Mineral Reserve is stated on a 100% basis. We own 75% of the Endako Mine. The Endako Mineral Reserve estimate is based on a NI 43-101 technical report prepared for us by John Marek, P.E. of IMC, who is a Qualified Person under NI 43-101, entitled "Technical Report Endako Molybdenum Mine Mine" dated and filed on SEDAR on September 12 2011 12, 2011.2 The Mineral Reserve estimate for the Endako Mine was estimated using an average long-term molybdenum price of C$13.50 per pound or US$12.00 per pound using an exchange rate of C$1.125 to US$1.00.3 The Mineral Resources for the Endako Mine were estimated using optimized pit shells at a molybdenum price of C$16.50 per pound or US$15.00 per pound using an exchange rate of C$1.10/US$1.00. Other than metal price, the same pit shell parameters and modifying factors used to determine the Mineral Reserves were used to determine the Mineral Resources. The Mineral Reserves are not included in the Mineral Resources. The Qualified Person, as defined under NI 43-101, for the estimation of Mineral Resources was John M. Marek, P.E., of IMC. The Endako Mineral Resource estimate is based on a NI 43-101 technical report prepared for us, entitled "Technical Report Endako Molybdenum Mine" dated and filed on SEDAR on September 12, 2011. 11
  12. 12. Endako Mine Recapitalization & Expansion  New state-of-the-art mill in place Mill • Increases throughput by 77% [from 31k to 55k tons per day] Endako Pit • Reduces unit operating expenses  New mining equipment purchased Conveyor – 8 haul trucks [240-ton capacity ea.] Denak E t Pit D k EastIn-Pit Crusher – 2 shovels [44 cubic yard capacity ea.] – Drills and support equipment  Production rate increases to 15 – 16 million lbs/year (100%)  Staged start up commenced January 2012Denak West Pit – Commercial production achieved February 2012 – Mill expansion completed March 2012 Outline of proposed Super Pit – Full production is expected Q2 2012 p p – Mill is performing exceptionally well and is expected to meet design capacity in the near future 12
  13. 13. Langeloth Metallurgical Facility Roasting capacity approximately 35 million pounds per year of molybdenum oxide Major North American producer of ferro-molybdenum and pure molybdenum oxide Makes Thompson Creek one of only three Western world molybdenum producers with the capacity to provide final product to worldwide consumers 13
  14. 14. Mt. Milligan – A Cornerstone Asset Diversification into copper and gold Substantial production potential through conventional mining methods Robust economics given low cash cost profile of deposit Located in British Columbia, a mining friendly jurisdiction Recently completed Endako mill expansion allows us to leverage Endako commissioning and project team experience 14
  15. 15. Mt. Milligan Project – British ColumbiaCu Production81 million pounds1 (annual LOM)Au Production194 000 ounces1 (annual LOM)194,000Cash Costs (Net of By-Products)<$0.50 per pound Cu (at $690 per ounce Au)Proven and Probable Mineral Reserves22.1 billion pounds CuAverage grade of 0.20% 22-Year Mine Life (Based on proven and probable6.0 million ounces Au reserves)Average grade of 0.011 oz/tMeasured and Indicated Mineral Resources3716 million pounds CuAverage grade of 0.15%1.5 illi1 5 million ounces A AuAverage grade of 0.006 oz/t1 Based on October 13, 2009 Terrane Metals Feasibility Update Study press release under 60,000 tpd scenario using base case of $2.00/lb Cu and $800/oz Au with USD/CAD FX rate of $0.85; pre-gold stream transaction. For further information on the Mt. Milligan project, please see Terrane’s “Technical Report – Feasibility Update Mt. Milligan Property – Northern BC”, completed by Wardrop, a Tetra Tech Company, effective October 13, 2009, and press release dated October 13, 2009.2 The copper and gold Mineral Reserve estimates for Mt. Milligan set out in the tables above have been prepared by Herbert E. Welhener, MMSA-QPM. of IMC, who is a Qualified Person under NI 43-101. The Mt. Milligan Reserve estimate is based on a NI 43-101 technical report prepared for our wholly owned subsidiary, Terrane, entitled "Technical Report—Feasibility Update Mt. Milligan Property—Northern BC" dated October 13, 2009 and filed on 43 101 Technical Report Feasibility Property Northern BC SEDAR on October 13, 2011. The open pit was optimized at a $4.10/t NSR cut-off value and incorporates costs for milling, plant services, tailing services and general and administrative charges and at $1.60/lb copper, $690/oz gold and 0.85 U.S.$/C$ exchange rate.3 The Mineral Resources estimates for Mt. Milligan set out in the table above have been prepared by Herbert E. Welhener, MMSA-QPM., of IMC. The resources are contained within an open pit shell that was optimized at a $4.10/t NSR cut-off value and incorporates costing for milling, plant services, tailing services and general and administrative charges and at $2.00/lb copper, $800/oz gold and $0.85 U.S. dollar/Canadian dollar exchange rate. The Mineral Reserves are not included in the Mineral Resources. The Mt. Milligan Resource estimate is based on a NI 43-101 technical report prepared for our wholly owned subsidiary, Terrane, entitled "Technical Report—Feasibility Update Mt. Milligan Property—Northern BC" and dated October 13, 2009 and filed on SEDAR on October 13, 2011. 15
  16. 16. Diversifying the portfolio… Mt. Milligan Once in operation, Mt. Milligan will significantly diversify and increase our revenues. We ultimately expect that its production and revenues will approach the scale of our current operations operations. Mo Au Mo M Cu C 16
  17. 17. A Great Asset with Robust Economics Upside Potential Significant annual cash flow potential in millions of US dollars1  Reserve calculation utilized conservative metals pricing of $1.60/lb Cu and $690/oz Au $600  Current resource is open at depth and possibly extends laterally  Multiple exploration drill targets within company’s land position  Mt. Milligan geophysical and geochemical Mt Milli h i l d h i l $220 signature repeated on several targets within the holdings  Revenue potential equal to existing operations Cash Costs Cash Revenue - Current pricing21 Estimated cash costs include operating costs, refining/smelting costs, and transportation. Cash operating costs and estimated annual production in concentrate are based upon the 2008 Terrane Metals Corp. Feasibility Study. Assumes average annual production of 89 million lbs of copper in concentrate (85.4 million lbs of payable copper) and 262,000 oz of gold in concentrate (256,760 oz of payable gold) for years 1-6 of full production. Exchange rate is assumed at parity (C$1.00 = US$ 1.00).2 Bloomberg pricing as of 5/11/12: Cu - $3.65/lb; Au - 60% @ $1,579/oz and 40% @ $435/oz (per Amended and Restated Gold Stream Agreement with Royal Gold). 17
  18. 18. Mt. Milligan Project Development Update EPCM progress through March 31, 2012  Engineering – 95%  Procurement – 95%  Construction – 44%  Overall Progress – 62% Mt. Milligan remains on schedule, with commissioning and start-up scheduled for Q3 2013 and full gold and copper production expected in Q4 2013. Grinding bay west site 18
  19. 19. A Clear Path to Project Completion High end of Mt. Milligan capital budget in millions of Canadian dollars Contingency 137 ~$1.5bn represents 46% of non-fixed cost 300 remaining 96 ~70% 396 of project capex spent or contractually committed 593 Cash spent to p Purchase Other lump-sum Non-fixed cost p Contingency g y Total project p j 3/31/2012 commitments contracts remaining capex 19
  20. 20. Mt. Milligan Project De-risking Actions  95% of engineering is complete Scope,  Early procurement of critical items Engineering &  All major mining and milling equipment is procured and is either on site or en route Procurement  80% of steel on site  Tailing Storage Facility (TSF) was fully designed in June 2010 with all critical areas of the dam base completed Construction of  Plant Development Critical Areas  Power line to site complete, tested & tied into BC Hydro  60% of concrete is complete and on schedule  SAG grinding area is under cover and ready for installation of mill  Mechanical/Electrical contractors – lump sum – contractors assume risk for cost overruns  EPCM – to date have maintained critical personnel with completion payments as incentiveLabor/Productivity  TCM has changed its work schedules, enhanced completion bonuses and planned permanent camp to attract operations personnel  Schedule issued February 2011 with no changes Schedule  Mine operations supports construction of TSF in Q2/Q3 2012, allowing for one year of activity to achieve operational efficiency and effectiveness  All major permits needed for construction have been obtained Permitting &  Enhanced internal & external staffing to control audit and manage project spending control, Controls  Project control, contract management, procurement, accounting, audit team 20
  21. 21. Mt. Milligan Future Critical Milestones Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413Process building grinding area enclosed (3 sides)Mechanical mill installation begins230kV permanent power energized and available onsiteDelivery and assembly of major mining equipmentMining equipment fleet readyPre-stripping initiatedPebble crushing building - foundation completeTruck shop completeSAG & ball mill installation completeProcess plant mechanical/pre-commissioning completeCommissioning startedFirst feedFull commercial production 21
  22. 22. Development Projects – British Columbia Berg DavidsonLocationL ti West-central British C l bi W t t l B iti h Columbia Smithers, B iti h C l bi S ith British ColumbiaDeposit Copper-molybdenum-silver Molybdenum 3.3 billion lbs CuMeasured + Indicated 412 million lbs MoMineral Resources e a esou ces 61 million oz A 1 illi Ag(Contained Cu, Mo &Ag) Average grade of 0.30% Cu and .037% Mo Average grade of 0.110 oz/t AgProject Status Scoping study underway Project re-evaluation on hold1 Estimated by Darin Labrenz, P.Geo., Terrane Metals Corp., a qualified person under NI 43-101, as of May 2009. 22
  23. 23. A Compelling Investment Responsible Miner Excellent safety and environmental record New Endako mill expected to reach design capacity in near future Near term Near-term completion of growth projects Mt. Milligan copper-gold mine expected completion Q3 2013 Mt Milli ld i t d l ti Mt. Milligan will significantly increase in revenue, net income and Strengthening financial performance cash flow Proven and Probable Mo 525 million pounds Diversified resources base1 (includes 100% Endako) Reserves Cu 2 billion pounds Au 6 million ounces Measured + Indicated Mo 504 million pounds Resources Cu 4 billion pounds Au 1.5 million ounces Ag 61 million Ounces Significant growth opportunities High-quality development projects Berg – Cu, Mo, and Ag; Davidson – Mo Proven track record in operations, exploration, p j p p project development, p Experienced management M&A Low geopolitical risk All assets in North America1 Mineral reserves and resources estimates for the Thompson Creek Mine were prepared by the Thompson Creek Mine staff and verified by John M. Marek of Independent Mining Consultants, Inc. (”IMC”), a Qualified Person under NI 43-101, and utilized a cut-off grade of 0.030% Mo. Mineral reserves and resources estimates for the Endako Mine were prepared by the Endako mine staff and verified by Mr. Marek. Endako mineral reserves utilized a cut-off grade of 0.018% and mineral resources utilized a cut-off grade of 0.015 Mineral reserves and resources estimates for Mt. Milligan were prepared by Herb Welhener, MMSA-QPM, Independent Mining Consultants Inc. and Darin Labrenz, P.Geo., former Vice President Business Development of Terrane Metals Corp. Mineral resources estimates for Berg were prepared by Darin Labrenz, P.Geo., former Vice President Business Development Terrane Metals Corp. %. Mineral resources estimates for the Davidson Property were prepared by site personnel, supervised by Ken Collison, P.Eng., former Chief Operating Officer, and verified by Gary Giroux. 23
  24. 24. Analyst CoverageFinancial Institution Analyst Financial Institution AnalystBank of America Merrill Lynch Oscar Cabrera J. P. Morgan Michael GambardellaBB&T Capital Markets Garrett Nelson Macquarie Capital Markets Pierre VaillancourtCanaccord Adams Gary Lampard Paradigm Capital David DavidsonCIBC World Markets Ian Parkinson RBC Capital Markets Fraser PhillipsCredit Suisse S isse Ralph Profiti Scotia Capital Thomas Meyer Me erDahlman Rose & Co Anthony Young Stifel, Nicolaus & Company Paul MassoudDesjardins Securities John Hughes TD Securities Craig MillerDeutsche Bank Jorge Beristain UBS Securities Canada Brian MacArthurGMP Securities David Charles Very Independent Research John Tumazos 24
  25. 25. Molybdenum Overview
  26. 26. Molybdenum Overview Essential metal for today’s modern industry Strengthens steel, improves weldability, reduces brittleness, helps steel perform well d bi l h l l f ll in very high or low temperatures Key catalyst in petroleum refining for sulphur removal Powerful anti-corrosive alloy for stainless and alloy steels $8 billion industry at current molybdenum prices 26
  27. 27. Molybdenum Industry Overview USA 27% Top 10 Producers1 20112011 Canada 3% [Output in millions of pounds Mo)Global China 34%ProductionP d ti Freeport 83 Chile 17% Codelco 50~ 548 M Peru 8%pounds1 Other 7% Grupo Mexico2 42 Mexico 4% China Molybdenum 34 Rio Tinto/Kennecott 31 Jinduicheng 292011 USA 16% Thompson Creek 28Geographic China 36% Antofagasta 22Consumption Other 20% Collahuasi 15~ 534 M Western Europe 18% Antamina 14pounds1 Japan 10% Total 348 1 Based on April 2012 CRU report data and company reports. 2 Includes Southern Copper and Asarco. Constructional Engineering Steels 34% Stainless Steels 25%First Uses of Alloy Tool & High Speed Steels 11%Momolybdenum Chemicals Cast Iron & Steels 10% 8% Super All S Alloys 6% Molybdenum Metal 6% 27
  28. 28. Moly Supply/Demand FundamentalsRemain Favorable Supply considerations Demand drivers  Climax mine is the only new primary mine likely to start  China/India/Brazil’s industrialization drive growth up in the near term as rising capital costs and  Increased intensity of use: oil and g , oil y gas, permitting hinder other primary mines (expected to refining, autos, aerospace, desalination, and produce in 2012) power generation  New by-product sources delayed until 2014 and beyond  Estimated 4-6% annual demand growth rate with Sierra Gorda likely starting up in 2015 outpacing growth of supply sources through  Chinese net exports recently playing less of a role in 2020 moly trade Molybdenum demand oxide Drummed molybdic oxide [millions of pounds assuming a 4% growth rate] [US dollars per pound] Projections 760 14.95 Historical 534 63 13.731959 2010 2012 2020 1/4/2012 2/2/2012 3/3/2012 4/2/2012 5/2/2012 2 2 2Source: CRU and other industry sources (CRU data only for 2005 to 2010); Company Source: Bloomberg, as reported by Metal Bulletin. As of May 2, 2012estimates 28
  29. 29. China: A Major Factor in theMolybdenum Picture Largest producer and largest consumer of molybdenum  Produces approximately 180 million lbs p y pp y per year  Consumes approximately 165 million lbs per year Internal molybdenum consumption growing at a faster rate than internal molybdenum production Molybdenum exports subject to quotas and export taxes Production quotas promote domestic consolidation and reduces some marginal production 29
  30. 30. Net Exports/Imports from ChinaAnnual Exports/Imports Quarterly Exports/Imports Source: International Molybdenum Association (IMOA). Net exports = exports minus imports. 30
  31. 31. Molybdenum OutlookStrong short-term drivers Positive long-term outlook Oil and gas drilling especially in North America drilling,  Industrial requirements demand better steels Aerospace – jet engines  Molybdenum is essential in the products in which it is used with few substitutes Continued economic growth in U.S. and Japan  Growing catalyst use in oil refineries G i t l t i il fi i Improving demand in India  The low proportion of molybdenum in finished products makes molybdenum demand relatively price inelastic 31
  32. 32. AppendixA di
  33. 33. AppendixNon-GAAP ReconciliationFor the Three Months Ended March 31, 2012(US$ in millions except shares and per share amounts – unaudited) Weighted Average Weighted Average Basic Shares Diluted Shares Shares Shares Net Income (000’s) $/share (000’s) $/share Net Income $ 1.1 168,054 $ 0.01 168,483 $ 0.01 Add (D d t) (Deduct): Unrealized (gain) loss on common stock purchase warrants 0.1 168,054 - 168,483 - Non-GAAP adjusted net income $ 1.2 168,054 $ 0.01 168,483 $ 0.01 33
  34. 34. (US$ in millions except per pound amounts — unaudited) Appendix Non-GAAP Reconciliation (Continued) (US$ in millions except shares and per share amounts – unaudited) Three months ended March 31, 2012 Operating Pounds Expenses Produced (1) (in millions) (000’s lbs) $/lb Thompson Creek Mine Cash costs — Non-GAAP (2) $ 35.4 3,422 $ 10.34 Add/(Deduct): Stock-based compensation 0.1 Inventory and other adjustments - GAAP operating expenses $ 35.5 Endako Mine Cash costs — Non-GAAP (2) $ 21.9 1,002 $ 21.87 Add/(Deduct): Stock-based compensation 0.2 Commissioning and start-up costs start up 2.3 Inventory and other adjustments 7.1 GAAP operating expenses $ 31.5 Other operations GAAP operating expenses (3) $ 35.4 GAAP consolidated operating expenses $ 102.4 Weighted-average cash cost — Non-GAAP $ 57.3 4,424 $ 12.95 (1) Mined production pounds are molybdenum oxide and HPM from our share of the production from the mines; excludes molybdenum processed from purchased product. (2) Cash costs represent the mining (including all stripping costs), milling, mine site administration, roasting and packaging costs for molybdenum oxide and HPM produced in the period. Cash cost excludes: the effect of purchase price adjustments, the effects of changes in inventory, corporate allocation stock-based compensation, other non-cash employee benefits, depreciation, depletion, amortization and accretion, and commissioning and start-up costs for the Endako mill. The cash cost for the Thompson Creek mine, which only produces molybdenum sulfide and HPM on site, includes an estimated molybdenum loss (sulfide to oxide), an allocation of roasting and packaging costs from the Langeloth facility, and transportation costs from the Thompson Creek mine to the Langeloth facility. (3) Other operations represent activities related to the roasting and processing of third-party concentrate and other metals at the Langeloth facility and exclude product volumes and costs related to the roasting and processing of Thompson Creek mine and Endako mine concentrate. The Langeloth facility costs associated with roasting and processing of Thompson Creek mine and Endako mine concentrate are included in their respective operating results above. 34
  35. 35. Thompson Creek Metals Company NYSE:TC TSX:TCMwww.thompsoncreekmetals.com Pamela Solly Director, Investor Relations Phone: (303) 762-3526 Email: psolly@tcrk.com

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