Thompson Creek Metals Co. recently reported lower production and higher costs in connection with the start-up and commissioning of the new mill at the Endako mine. “Through continued optimization we expect to make up for the lower production throughout the remainder of 2012 and to meet our previously announced 2012 production guidance from the Endako mine of approximately 14 to 15 million lb of molybdenum on a 100% basis, or 10 to 11 million lb for the company’s 75% share,” said Kevin Loughrey, chairman and CEO, Thompson Creek.

“We anticipate meeting our total 2012 production guidance of approximately 26 to 28 million lb of molybdenum; however, due to inflationary pressures on energy and consumables, we are currently tracking to the higher range of the company’s current 2012 average cash cost guidance of approximately $7.75/lb to $9/lb produced.

“Despite our efforts to aggressively manage costs, inflationary pressures may cause actual costs to vary from current guidance,” Loughrey said. The company expects production to be higher in the second half of 2012 due to the anticipated ramp-up of production from the newly completed mill, together with the improved ore accessibility at the Thompson Creek mine. Waste stripping activities at the Thompson Creek mine are expected to continue throughout 2012 and 2013.

“During the first quarter of 2012, we completed the Endako mill expansion project, which is currently performing exceptionally well and is expected to meet design specifications in the near future,” Loughrey said. “We also continued to advance our Mt. Milligan copper-gold project, which remains on schedule for completion in the third quarter of 2013 and commercial production in the fourth quarter of 2013. As we continue our transition from a pure molybdenum producer into a diversified base metals company, we are very optimistic about the long-term prospects.”