Thompson Creek swings to third-quarter loss on $47-million charge, lower revenue

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DENVER - Thompson Creek Metals Company Inc. (TSX:TCM) reports it swung to a loss of $48.2 million in the third-quarter as it booked a $47 million goodwill charge and saw lower production and higher unit costs from its mines.

The diversified miner with operations in both the U.S. and Canada said that loss amounts to 29 cents share compared to net income of $45.6 million, or 27 cents per share, during the same quarter of 2011.

The recent quarterly loss includes a goodwill impairment of $47 million related to the suspension of waste stripping activity associated with the next phase of production at the Thompson Creek mine, as well as a decline in molybdenum prices.

On an adjusted basis, the loss amounted to $1.2 million, or a penny per share.

Consolidated revenue amounted to $74.9 million, down from $154.8 million in the year-ago period.

In its 2012 outlook, it said the company's share of production at its 75-per-cent-owned Endako mine in northern British Columbia is expected to be at the low end of the previous guidance, as a result of lower-than-expected production though the third quarter.

Meanwhile, it added, the Thompson Creek mine molybdenum mine in Idaho is expected to meet the previous guidance for 2012.

The Thompson Creek mine is expected to produce 20 million to 22 million pounds of molybdenum in 2013 and 17 million to 19 million pounds in 2014.

In addition, the company announced that it's CEO, Kevin Loughrey, has informed the board of directors that he plans to retire in the next 18 months.

He will continue in his role until a replacement is named and will help to ensure a stable transition.

In October, the company announced cutbacks expected to save more than $100 million at its Thompson Creek mine.

About 100 workers will lose their jobs.

The company also owns the Mount Milligan gold-copper project in central British Columbia that is expected to begin production next year.

Thompson Creek shares added a penny to $2.99 in trading Friday on the Toronto Stock Exchange.

Organizations: Thompson Creek Metals Company Inc., TSX, The Thompson Toronto Stock Exchange

Geographic location: Thompson Creek, DENVER, British Columbia U.S. Canada Idaho

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