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Thompson Creek Metals Company Achieves Commercial Production at Mt. Milligan and Reports Fourth Quarter and Full Year 2013 Financial Results

DENVER, CO--(Marketwired - Feb 20, 2014) - Thompson Creek Metals Company Inc. ( NYSE : TC ) ( TSX : TCM ) (the "Company" or "Thompson Creek"), a diversified North American mining company, announced today that its Mt. Milligan copper and gold mine achieved commercial production on February 18, 2014, which the Company defines as operation of the mill for a period of 30 days at 60% or more of design capacity mill throughput, equivalent to 36,000 tonnes per day.

"Achieving commercial production is a significant milestone for the Company," said Jacques Perron, Chief Executive Officer of Thompson Creek. "We are seeing steady improvements on a daily basis and remain focused on optimizing operating performance at the mine and mill to achieve full design capacity," added Mr. Perron.

The Company also announced financial results for the three months and year ended December 31, 2013, prepared in accordance with United States generally accepted accounting principles ("US GAAP"). All dollar amounts are in United States ("US") dollars unless otherwise indicated.

2013 Highlights:

  • Consolidated revenues for 2013 were $434.4 million compared to $401.4 million in 2012. Copper and gold sales contributed $14.3 million of additional revenue in 2013. Molybdenum sales volumes were 36.5 million pounds in 2013 compared to 28.7 million pounds in 2012. Our average realized sales price for molybdenum in 2013 was $10.97 per pound compared to $13.48 per pound in 2012.

  • Consolidated operating loss for 2013 was $175.3 million compared to an operating loss of $607.7 million for 2012. Consolidated operating loss for 2013 was impacted by a pre-tax write down of the fixed assets and materials and supplies inventory at the Thompson Creek Mine ("TC Mine") and Endako Mine of $194.9 million and lower-of-cost-or-market product inventory write downs of $51.0 million. Consolidated operating loss for 2012 was impacted by a fixed asset pre-tax write down at Endako Mine of $530.5 million and lower-of-cost-or-market product inventory write downs of $73.8 million.

  • Net loss for 2013 was $215.0 million, or $1.26 per share compared to a net loss for 2012 of $546.3 million, or $3.24 per share. The net loss for 2013 and 2012 included non-cash foreign exchange losses and gains, respectively of $70.8 million and $12.2 million, primarily on intercompany notes. 

  • Cash generated by operating activities was $44.8 million in 2013 compared to cash used in operating activities of $28.2 million in 2012.

  • Non-GAAP adjusted net loss for 2013 was $5.0 million, or $0.03 per diluted share compared to a non-GAAP adjusted net loss for 2012 of $44.8 million, or $0.27 per share. Non-GAAP adjusted net income (loss) excludes the non-cash impact of fixed asset and materials and supplies inventory impairment losses, the 2012 goodwill impairment and foreign exchange losses and gains.

  • Mt. Milligan began the commissioning and start-up phase in the third quarter of 2013. In November 2013, we made our first shipment and sale of concentrate, and in January 2014 we made our second shipment and recorded the sale in February.

  • Payable production at Mt. Milligan during 2013 was 10.4 million pounds of copper and 20,374 ounces of gold.

  • Non-GAAP unit cash cost for 2013 was, on a by-product basis, $7.76 per pound, and, on a co-product basis, $5.36 per pound of copper and $1,456 per ounce of gold.

  • Molybdenum production for 2013 was 29.9 million pounds compared to 22.4 million pounds in 2012.

  • Non-GAAP average molybdenum cash cost per pound produced for 2013 was $6.49 per pound compared to $10.09 per pound in 2012.

  • Capital expenditures in 2013 were $428.9 million, comprised of $419.1 million for Mt. Milligan Mine and $9.8 million of other capital costs for Endako Mine, TC Mine, the Langeloth Facility and corporate combined, compared to $771.5 million in 2012.

  • Total cash and cash equivalents at December 31, 2013 were $233.9 million, compared to $526.8 million at December 31, 2012. Total debt at December 31, 2013 was $1,012.8 million, including capital lease obligations, compared to $1,010.5 million at December 31, 2012.

Jacques Perron, Chief Executive Officer of Thompson Creek, said, "Our most significant achievement in 2013 was the commissioning and start-up of Mt. Milligan Mine. After almost three years of construction, we are proud to have transitioned Mt. Milligan from a development project to a revenue-generating copper and gold operation resulting in payable production for 2013 of 10.4 million pounds of copper and 20,374 ounces of gold. The ramp-up at Mt. Milligan continues to progress with mine pit grades as expected, metal recoveries in the mill above expectations and mill throughput steadily improving. As expected, our financial results were negatively impacted in the fourth quarter of 2013 as a result of Mt. Milligan revenue and costs being reflected in operating income rather than in start-up costs, as required by US GAAP. Additionally, as a result of declining molybdenum prices, we had non-cash asset impairments at both of our molybdenum mines, which significantly impacted our non-cash operating results. We are pleased with our operational achievements at our molybdenum mines as production and costs continued to improve. Molybdenum production for 2013 was 29.9 million pounds, compared to 22.4 million pounds in 2012, and non-GAAP average molybdenum cash cost per pound produced for 2013 was $6.49 per pound, compared to $10.09 per pound in 2012. As we look forward, we will continue to focus on the ramp-up at Mt. Milligan to full design capacity and look to strengthen the Company's longer-term financial profile."

Given declines in molybdenum prices and projected operating costs at TC Mine for 2015 and thereafter, in October 2012, the Company suspended waste stripping activity associated with Phase 8. Since that time, the molybdenum market has continued to weaken and, as a result, management has made the decision to put TC Mine on care and maintenance when the mining and processing of Phase 7 ore is completed, which is expected to be in the fourth quarter of 2014. Management intends to preserve the assets at TC Mine while it is on care and maintenance to enable the Company to re-commence operations when molybdenum market conditions improve. Management will continue to evaluate potential economically viable options for Phase 8.

The decision to place TC Mine on care and maintenance was a triggering event to evaluate for potential long-lived asset impairment. As a result of such evaluation, during the fourth quarter of 2013 the Company recognized a pre-tax, non-cash write down of TC Mine property, plant, equipment assets and materials and supplies inventories of $129.4 million, representing a write down to the assets' estimated fair value as of December 31, 2013. 

During the fourth quarter of 2013, the Company revised the proven and probable reserves for both of its molybdenum mines using a $10.00 per pound molybdenum oxide price, which resulted in a significant reduction in reserves at Endako Mine. This revision was a triggering event to evaluate for potential long-lived asset impairment. Such evaluation led the Company to recognize in 2013 an additional pre-tax, non-cash property, plant and equipment and materials and supplies inventory write down of $64.7 million, which represents the Company's 75% share of Endako Mine assets' estimated fair value as of December 31, 2013.

   
Selected Consolidated Financial and Operational Information  
(US$ in millions, except per share, per pound and per ounce amounts)  
   
    Three Months Ended
December 31,
    Years Ended December 31,  
    2013     2012     2013     2012     2011  
    (unaudited)                    
Financial Information                                        
Revenues                                        
  Copper sales   $ 8.7     $ -     $ 8.7       -     $ -  
  Gold sales     5.6       -       5.6       -       -  
  Molybdenum sales     97.7       95.0     $ 400.8       386.8       651.9  
  Tolling, calcining and other     5.1       4.4       19.3       14.6       17.2  
    Total revenues     117.1       99.4       434.4       401.4       669.1  
Costs and expenses                                        
  Cost of sales                                        
    Operating expenses     112.5       83.7       318.9       374.5       392.8  
    Depreciation, depletion and amortization     16.5       15.9       61.2       64.0       74.7  
  Total cost of sales     129.0       99.6       380.1       438.5       467.5  
  Total costs and expenses     331.2       640.1       609.7       1,009.1       519.8  
Operating income (loss)     (214.1 )     (540.7 )     (175.3 )     (607.7 )     149.3  
Other (income) expense     62.8       15.9       103.1       49.7       (154.0 )
Income (loss) before income and mining taxes     (276.9 )     (556.6 )     (278.4 )     (657.4 )     303.3  
Income and mining tax (benefit) expense     (66.4 )     (72.2 )     (63.4 )     (111.1 )     11.2  
Net income (loss)   $ (210.5 )   $ (484.4 )   $ (215.0 )   $ (546.3 )   $ 292.1  
Net income (loss) per share                                        
  Basic   $ (1.24 )   $ -     $ (1.26 )   $ (3.24 )   $ 1.75  
  Diluted   $ (1.24 )   $ -     $ (1.26 )   $ (3.24 )   $ 1.73  
Cash generated by (used in) operating activities   $ (35.2 )   $ (14.2 )   $ 44.8     $ (28.2 )   $ 202.7  
Adjusted Non-GAAP Measures: (1)                                        
Adjusted net income (loss) (1)   $ (28.5 )   $ (11.9 )   $ (5.0 )   $ (44.8 )   $ 134.3  
Adjusted net income (loss) per share-basic (1)   $ (0.17 )   $ (0.07 )   $ (0.03 )   $ (0.27 )   $ 0.80  
Adjusted net income (loss) per share-diluted (1)   $ (0.17 )   $ (0.07 )   $ (0.03 )   $ (0.27 )   $ 0.80  
                                         
                                         
                                         
    Three Months Ended
December 31,
    Years Ended December 31,  
    2013     2012     2013     2012     2011  
    (unaudited)                    
Operational Statistics                                        
Copper                                        
  Payable production (000's lb)     9,348       -       10,352       -       -  
  Cash cost ($/payable lb produced) - By-Product (1)   $ 7.34       -     $ 7.76       -       -  
  Cash cost ($/payable lb produced) - Co-Product (1)   $ 5.11       -     $ 5.36       -       -  
  Payable production sold (000's lb)     2,801       -       2,801       -       -  
  Average realized sales price ($/lb) (1)   $ 3.29       -     $ 3.29       -       -  
Gold                                        
  Payable production (oz)     18,446       -       20,374       -       -  
  Cash cost ($/payable oz produced) - Co-Product (1)   $ 1,388       -     $ 1,456       -       -  
  Payable production sold (oz)     5,541       -       5,541       -       -  
  Average realized sales price ($/oz) (1)   $ 1,006       -     $ 1,006       -       -  
Molybdenum                                        
  Mined production (000's lb) (2)     7,194       7,747       29,945       22,429       28,345  
  Cash cost ($/lb produced) (1)   $ 6.91     $ 6.58     $ 6.49     $ 10.09     $ 7.94  
  Molybdenum sold (000's lb):                                        
    TC Mine and Endako Mine product     9,202       5,490       31,467       18,147       31,806  
    Purchased and processed product     468       2,578       5,054       10,542       8,245  
      9,670       8,068       36,521       28,689       40,051  
  Average realized sales price ($/lb) (1)   $ 10.11     $ 11.77     $ 10.97     $ 13.48     $ 16.28  
                                           
   
(1) See "Non-GAAP Financial Measures" for the definition and reconciliation of these non-GAAP measures.
   
(2) Mined production pounds reflected are molybdenum oxide and high performance molybdenum disulfide ("HPM") from our share of production from the mines (excludes molybdenum processed from purchased product).
   
   

2014 Guidance

The key operating measures that management focuses on in operating our business are safety performance, production, cash cost per pound produced and capital expenditures. We continually review our operating strategy as commodity market conditions change.

The following table presents our guidance for the full year 2014.

       
    Year Ended
December 31, 2014
(Estimated)
 
Mt. Milligan Copper and Gold (1)      
  Concentrate production (000's wet metric tons)   135 - 150  
  Copper payable production (000's lb)   65,000 - 75,000  
  Gold payable production (000's oz)   165 - 175  
  Unit cash cost - By-product ($/payable lb copper produced): (2), (3)   1.55 - 1.70  
Molybdenum      
  Production (000's lb): (4)      
    TC Mine   14,000 - 16,000  
    Endako Mine (75% share)   10,000 - 12,000  
  Total molybdenum production (000's lb)   24,000 - 28,000  
  Cash cost ($/lb produced): (2), (3)      
    TC Mine   4.75 - 5.75  
    Endako Mine   9.00 - 10.50  
  Total molybdenum cash cost ($/lb produced)   6.50 - 7.75  
Capital expenditures ($ in millions): (3)      
  Mt. Milligan permanent operations residence   20 ± 10 %
  Mt. Milligan operations and project   30 ± 10 %
  TC Mine, Endako Mine, Langeloth & other   10 ± 10 %
Total capital expenditures   60 ± 10 %
       
   
(1) For the Mt. Milligan guidance, start-up activities have continued into the first quarter of 2014. However, the guidance assumes that 100% of design capacity mill throughput and designed copper and gold recoveries are not achieved until 2015.
   
(2) Copper by-product unit cash cost is calculated using payable production, with an assumed gold price of approximately $850 per ounce, adjusted for the gold price of $435 per ounce pursuant to the Gold Stream Arrangement. See "Non-GAAP Financial Measures" for the definition and reconciliation of these non-GAAP measures.
   
(3) Excludes approximately $21 million of accruals related to Mt. Milligan Mine capital expenditures as of December 31, 2013, that will be paid in 2014. Estimates for cash costs and cash capital expenditures assume a foreign exchange rate of US$1.00 = C$1.00.
   
(4) Molybdenum production pounds represented are molybdenum oxide and HPM from our share of production from the mines but exclude molybdenum processed from purchased product.
   
   

Non-GAAP Financial Measures

In addition to the consolidated financial statements presented in accordance with US GAAP, we use certain non-GAAP financial measures of our financial performance for the reasons described further below. These measures do not have standard meanings prescribed by US GAAP and may not be comparable to similar measures presented by other companies. The presentation of these measures is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with US GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the results of operations as determined in accordance with US GAAP.

Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Share -- Basic and Diluted

Management of the Company uses adjusted net income (loss), and adjusted net income (loss) per share -- basic and diluted to evaluate the Company's operating performance, and for planning and forecasting future business operations. The Company believes the use of these measures allows investors and analysts to compare results of the continuing operations of the Company to similar operating results of other mining companies, by excluding items that are considered non-core to our business.

Adjusted net income (loss) represents the income (loss) prepared in accordance with US GAAP, adjusted for significant non-cash items.

For the 2013 periods, the significant non-cash items were the asset impairments and related materials and supplies inventory impairments and the non-cash losses related to the impact of foreign exchange due primarily to intercompany notes, and related tax effects. For the 2012 periods, the significant non-cash items were the non-cash losses related to the impairment of assets at Endako Mine and related income tax effects, goodwill impairment, non-cash gains related to the impact of foreign exchange due primarily to intercompany notes and the non-cash gains and losses on the fair value adjustment related to the common stock purchase warrants that were outstanding until June 30, 2012. For the 2011 period, the significant non-cash items were the non-cash losses related to the impact of foreign exchange due primarily to intercompany notes and the non-cash gains and losses on the fair value adjustment related to the then outstanding common stock purchase warrants.

Adjusted net income (loss) per share (basic and diluted) is calculated using adjusted net income (loss), as defined above, divided by the weighted-average basic and weighted-average diluted shares outstanding during the period as determined in accordance with US GAAP. If the adjustments to a net (loss) on US GAAP basis result in non-GAAP adjusted net income, we calculate weighted-average diluted shares outstanding in accordance with US GAAP and use that to calculate adjusted net income per share -- diluted. If the adjustments to a net income on a US GAAP basis result in a non-GAAP adjusted net (loss), we utilized weighted-average basic shares outstanding to calculate adjusted net income per share -- diluted, in accordance with US GAAP.

The following tables reconcile net income (loss) presented in accordance with US GAAP to the non-GAAP financial measures of adjusted net income (loss) and adjusted net income (loss) per share -- basic and diluted, for the years ended December 31, 2013, 2012 and 2011 and for the three months ended December 31, 2013 and 2012. All figures within the tables are unaudited and are presented in US$ in millions, except shares and per share amounts.

             
             
    Three Months Ended
December 31,
    Year Ended December 31,  
    2013     2012     2013     2012     2011  
Net income (loss)   $ (210.5 )   $ (484.4 )   $ (215.0 )   $ (546.3 )   $ 292.1  
Add (Deduct):                                        
  Asset impairments     194.9       530.5       194.9       530.5       -  
  Tax benefit of asset impairments (1)     (47.4 )     (183.3 )     (47.7 )     (183.3 )     -  
  Tax valuation allowance (1)     1.5       119.2       1.5       119.2       -  
  (Gain) loss on foreign exchange (2)     40.8       7.8       71.3       (12.2 )     13.1  
  Tax expense (benefit) on foreign exchange (gain) loss     (7.8 )     (1.7 )     (10.0 )     2.1       (1.7 )
  Unrealized (gain) loss on common stock purchase warrants     -       -       -       (1.8 )     (169.2 )
  Goodwill impairment     -       -       -       47.0       -  
Non-GAAP adjusted net income (loss)   $ (28.5 )   $ (11.9 )   $ (5.0 )   $ (44.8 )   $ 134.3  
                                         
Net income (loss) per share                                        
  Basic   $ (1.24 )   $ (2.87 )   $ (1.26 )   $ (3.24 )   $ 1.75  
  Diluted   $ (1.24 )   $ (2.87 )   $ (1.26 )   $ (3.24 )   $ 1.73  
Adjusted net income (loss) per share                                        
  Basic   $ (0.17 )   $ (0.07 )   $ (0.03 )   $ (0.27 )   $ 0.80  
  Diluted   $ (0.17 )   $ (0.07 )   $ (0.03 )   $ (0.27 )   $ 0.80  
Weighted-average shares                                        
  Basic     171.5       168.7       171.1       168.4       167.2  
  Diluted     217.1       216.2       216.8       216.2       168.6  
                                           
     
(1)   The asset impairment for Endako Mine in 2013 did not have a net tax impact due to offsetting valuation allowance movement; therefore, the non-GAAP adjusted net income (loss) presentation excludes this tax effect on both lines.
(2)   For 2013, included $0.5 million of foreign exchange losses in deferred tax expense. For the three months ended December 31, 2013, included foreign exchange losses in deferred tax expense of $0.1 million.
     
     

Copper-Gold Operations - Unit Cash Cost and Average Realized Price per Payable Pound or Payable Ounce Sold

Unit cash cost on a by-product and co-product basis are considered key measures in evaluating our operating performance in our Copper-Gold operations. Unit cash cost on a by-product and co-product basis are not measures of financial performance, do not have standardized meaning prescribed by US GAAP and may not be comparable to similar measures presented by other companies. We use these measures to evaluate the operating performance at our Mt. Milligan Mine, as well as on a consolidated basis, as measures of profitability and efficiency. We believe that these non-GAAP measures provide useful supplemental information to investors in order that they may evaluate our performance using the same measures as those used by management and, as a result, the investor is afforded greater transparency in assessing our financial performance.

Unit cash cost on a by-product and co-product basis represent the mining (including all stripping costs), milling, on-site general and administration, truck and rail transportation, refining and treatment, ocean freight and insurance and warehousing. In accordance with the cash cost standard endorsed by the World Gold Council and, previously, the Gold Institute, sales of by-product metals are deducted when computing cash costs on a by-product basis. Stripping costs that provide access to mineral reserves that will be produced in future periods are expensed under US GAAP as incurred.

Unit cash cost on a by-product and co-product basis exclude the effects of changes in inventory; non-cash corporate allocations; other non-cash employee benefits, such as stock-based compensation; depreciation, depletion, amortization and accretion.

On a co-product basis, cash costs are allocated between copper and gold based on production. Copper production is stated in thousands of pounds and gold has been converted to thousands of copper equivalent (Cu eq.) pounds. Copper equivalent pounds are determined by using the gold production for the periods presented, as well as the trailing one-year average prices for copper and gold. The price used for gold are a weighted-average of the one-year average of the Metals Bulletin Daily published prices for daily average London price per ounce and the fixed price established under the Gold Stream Arrangement ($435 per oz). The price for copper is the one-year average of the Metals Bulletin Daily published price for LME settlement per tonne.

The following tables provide a reconciliation of cash costs and unit cash cost to operating expenses for Copper-Gold operations included in our Consolidated Statements of Operations and Comprehensive Income (Loss) in the determination of net income (loss). All figures within the tables are unaudited.

By-Product

             
(US$ in millions, except pounds and per pound amounts)   Three Months Ended
December 31, 2013
    Year Ended
December 31, 2013
 
Copper payable production (000's lbs)     9,348       10,352  
Direct mining costs (1)   $ 72.1     $ 83.9  
Refining and treatment costs     0.5       0.5  
Transportation, warehousing and insurance costs     0.8       0.8  
By-product credits (2)     (4.8 )     (4.8 )
Non-GAAP cash cost   $ 68.6     $ 80.4  
Non-GAAP unit cash cost   $ 7.34     $ 7.76  
                 
   
(1) Mining (including all stripping costs), milling and on-site general and administration costs.
   
(2) By-product credits for gold product revenues, net of refining and treatment charges, have been included as a reduction of cash costs. The amortization of deferred revenue from the Gold Stream Arrangement has been excluded from the calculation of by-product credits. By-product credits included in our presentation of Cash Cost on a By-Product basis include:
   
             
(US$ in millions, except per pound amounts)   Three Months Ended
December 31, 2013
    Year Ended
December 31, 2013
 
Total                
  Gold   $ (4.6 )   $ (4.6 )
  Silver     (0.2 )     (0.2 )
  Total by-product credits   $ (4.8 )   $ (4.8 )
                 
Per payable pound produced                
  Gold     (0.50 )     (0.45 )
  Silver     (0.02 )     (0.02 )
  Total by-product credits   $ (0.52 )   $ (0.47 )
                 
                 
                 
Reconciliation to Amounts Reported (US$ in millions)   Three Months Ended
December 31, 2013
    Year Ended
December 31, 2013
 
Non-GAAP cash cost   $ 68.6     $ 80.4  
By-product credits     4.6       4.6  
Refining and treatment costs     (0.5 )     (0.5 )
Transportation, warehousing and insurance costs     (0.8 )     (0.8 )
Inventory adjustments     (21.4 )     (33.3 )
Corporate allocations and other     (6.9 )     (6.9 )
Other non-cash employee benefits     -       0.1  
Copper-Gold segment US GAAP operating expenses   $ 43.6     $ 43.6  
                 
                 

Co- Product

     
(US$ in millions, except pounds per pound and per ounce amounts)   Three Months Ended
December 31, 2013
    Copper   Gold   Total
Payable production (1)     9,348     5,006     14,354
Direct mining costs (2)   $ 46.9   $ 25.2   $ 72.1
Refining and treatment costs     0.3     0.2     0.5
Transportation, warehousing and insurance costs     0.6     0.2     0.8
Non-GAAP cash cost   $ 47.8   $ 25.6   $ 73.4
Non-GAAP unit cash cost   $ 5.11   $ 1,388      
                   
   
(1) Copper production is stated in thousands of payable pounds. Gold has been converted from payable ounces to thousands of copper equivalent pounds by using the gold production for the period(s) presented, a gold price of $901 per ounce and a copper price of $3.32 per pound.
   
(2) Mining (including all stripping costs), milling and on-site general and administration costs.
   
   
     
(US$ in millions, except pounds per pound and per ounce amounts)   Year Ended
December 31, 2013
    Copper   Gold   Total
Payable production (1)     10,352     5,529     15,881
Direct mining costs (2)   $ 54.6   $ 29.3   $ 83.9
Refining and treatment costs     0.3     0.2     0.5
Transportation, warehousing and insurance costs     0.6     0.2     0.8
Non-GAAP cash costs   $ 55.5   $ 29.7   $ 85.2
Non-GAAP average unit cash costs   $ 5.36   $ 1,456      
                   
   
(1) Copper production is stated in thousands of payable pounds. Gold has been converted from payable ounces to thousands of copper equivalent pounds by using the gold production for the period(s) presented, a gold price of $901 per ounce and a copper price of $3.32 per pound.
   
(2) Mining (including all stripping costs), milling and on-site general and administration costs.
   
   
             
Reconciliation to Amounts Reported (US$ in millions)   Three Months Ended
December 31, 2013
    Year Ended
December 31, 2013
 
Non-GAAP cash cost   $ 73.4     $ 85.2  
Refining and treatment costs     (0.5 )     (0.5 )
Transportation, warehousing and insurance costs     (0.8 )     (0.8 )
By-product credits     (0.2 )     (0.2 )
Inventory adjustments     (21.4 )     (33.3 )
Corporate allocations and other     (6.9 )     (6.9 )
Other non-cash employee benefits     -       0.1  
Copper-Gold segment US GAAP operating expenses   $ 43.6     $ 43.6  
                 
                 

Average realized sales price

The average realized sales price per payable pound or payable ounce sold represents copper or gold sales revenue, plus the refining and treatment charges, divided by the pounds or ounces sold, respectively.

The following tables provide a calculation of average realized sales price per payable pound or payable ounce. All figures within the tables are unaudited.

...
         
(US$ in millions, except pounds and per pound amounts)   Three Months Ended
December 31, 2013
  Year Ended
December 31, 2013
Payable pounds of copper sold (000's lb)     2,801     2,801
Copper sales   $ 8.7   $ 8.7
Refining and treatment charges     0.5