TCMC 12.31.2013 10-K
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ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ý
 
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2013
Or
o
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                                   to                                  
Commission File Number: 001-33783
THOMPSON CREEK METALS COMPANY INC.
(Exact name of registrant as specified in its charter)
British Columbia, Canada
(State or other jurisdiction of
incorporation or organization)
 
98-0583591
(I.R.S. Employer
Identification No.)
26 West Dry Creek Circle, Suite 810, Littleton, CO
(Address of principal executive offices)
 
80120
(Zip code)
(303) 761-8801
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Name of each exchange on which
registered:
 
 
Common Stock, no par value
 
New York Stock Exchange
 
 
Tangible Equity Units
 
New York Stock Exchange
 

Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý  No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o    No ý
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment of this Form 10-K. ý
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý
 
Accelerated filer o
 
Non-accelerated filer o
 (Do not check if a
smaller reporting company)
 
Smaller reporting company o
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes o    No ý
As of February 17, 2014, there were 171,463,409 shares of the registrant's common stock, no par value, outstanding.
As of June 30, 2013, the last day of the registrant's most recently completed second fiscal quarter, the aggregate market value of the registrant's common equity held by non-affiliates was approximately $517 million, based on the closing price of the registrant's common stock on such date as reported on the New York Stock Exchange. For purposes of this calculation, shares of common stock held by executive officers, directors and holders of greater than 10% of the registrant's outstanding common stock are assumed to be affiliates of the registrant. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
DOCUMENTS INCORPORATED BY REFERENCE
Part III incorporates certain information by reference from the registrant's definitive proxy statement for the 2014 annual meeting of stockholders to be filed no later than 120 days after the end of the registrant's fiscal year ended December 31, 2013.

Table of Contents


Thompson Creek Metals Company Inc.
INDEX TO FORM 10-K
 
 
 
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Statement Regarding Forward-Looking Information
Certain statements in this report (including information incorporated by reference) are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and applicable Canadian securities legislation, and are intended to be covered by the safe harbors provided by these regulations. These forward-looking statements can, in some cases, be identified by the use of terms such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Our forward-looking statements may include, without limitation, statements with respect to:
•
future financial or operating performance of the Company or its subsidiaries and its projects;
•
the availability of, and terms and costs related to, future borrowing, debt repayment and financing;
•
future inventory, production, sales, cash costs, capital expenditures and exploration expenditures;
•
expected concentrate and recovery grades;
•
estimates of mineral reserves and resources, including estimated mine life and annual production;
•
projected timing to ramp-up to design capacity at Mt. Milligan Mine;
•
the projected development of our development properties and future exploration at our operations;
•
future concentrate shipment dates and shipment sizes;
•
future operating plans and goals;
•
future ability to attract and retain qualified and experienced personnel; and
•
future molybdenum, copper and gold prices.
Forward-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 the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Item 1A, Risk Factors and elsewhere in this report. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
PART I
In this report, references to “we,” “our” and “us” mean Thompson Creek Metals Company Inc. together with our subsidiaries, unless the context otherwise requires. All dollar amounts in this report are expressed in United States dollars (“$”), unless otherwise indicated. Canadian currency is denoted as “C$.” Financial information is presented in accordance with accounting principles generally accepted in the United States (“US GAAP”). References to “Notes” refer to the Notes to Consolidated Financial Statements included in Item 8 herein.
ITEMS 1. AND 2.   BUSINESS AND PROPERTIES
GENERAL
Thompson Creek Metals Company Inc. is a diversified, North American mining company. We operate a copper and gold mine, two primary molybdenum mines, and a metallurgical roasting facility. Our Mt. Milligan Mine (“Mt. Milligan Mine”) is an open pit copper-gold mine and concentrator in British Columbia, Canada; our Thompson Creek Mine (“TC Mine”) is an open-pit molybdenum mine and concentrator in Idaho, USA; our Endako Mine is an open-pit molybdenum mine, concentrator and roaster in British Columbia, Canada (in which we own a 75% joint venture interest) (“Endako Mine”); and our metallurgical roasting facility in Pennsylvania, USA (the “Langeloth Facility”) roasts molybdenum concentrate and other metals for us and for third party customers. As of the date hereof, we plan to put TC Mine on care and maintenance when the mining of Phase 7 is completed, which is expected to be in the fourth quarter of 2014. We intend to preserve the assets at TC Mine while it is on care and maintenance to enable us to re-commence operations if and when molybdenum market conditions improve and we continue to evaluate potential economically viable options for Phase 8.
Our principal assets are our ore reserves. At December 31, 2013, the consolidated proven and probable reserve for Mt. Milligan Mine totaled 2.1 billion pounds of contained copper and 6.0 million ounces of contained gold. At December 31, 2013, the consolidated proven and probable reserves for TC Mine and Endako Mine totaled 197.9 million pounds of contained molybdenum, with 62% of these reserves from TC Mine and 38% from Endako Mine (stated on a 100% basis). Detailed information regarding our reserves is provided below in “Mineral Reserves.”

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We also have a copper, molybdenum and silver exploration property located in British Columbia, Canada (the “Berg Property”) and a gold exploration property located in Nunavut, Canada (the “Maze Lake Property”). In October 2013, we relinquished our option to develop the Davidson exploration property located in British Columbia, Canada that we had held since 2005.
The following map sets forth the locations of our mines, metallurgical facility, exploration properties and corporate office:
See Note 23 for more information about our operating segments.
Our corporate headquarters are in Littleton, Colorado, USA. We are a corporation governed by the Business Corporations Act (British Columbia). We were organized in 2000 as a corporation under the laws of Ontario, Canada, and were continued as a corporation under the laws of British Columbia, Canada in 2008. In October 2006, we acquired Thompson Creek Metals Company USA, then a privately-held company incorporated and headquartered in the United States, and in so doing acquired TC Mine, Endako Mine and the Langeloth Facility. In October 2010, we acquired Terrane Metals Corp. (“Terrane”), an exploration and development company incorporated and headquartered in British Columbia, Canada, and in so doing acquired the Mt. Milligan development project and the Berg and Maze Lake Properties.
OUR PRODUCTS
Copper
General
We produced 10.9 million pounds of copper in concentrate in 2013 containing 10.4 million pounds of payable copper. In September 2013, the first copper-gold concentrate was produced at Mt. Milligan Mine, with start-up and commencement of production as of that date. Production from Mt. Milligan Mine is in the form of saleable concentrate that is sold to smelters for further treatment and refining and to merchants who transact with smelters. In 2013, 2% of our product sales were attributable to copper.
Copper Uses
Copper is a malleable and ductile element that is an excellent conductor of heat and electricity as well as being corrosion-resistant and antimicrobial. Refined copper is incorporated into wire and cable products for use in the construction, electric utility, communications and transportation industries. Copper is also used in industrial equipment and machinery, consumer products and a variety of other electrical and electronic applications and is also used to make brass. Copper substitutes include aluminum, plastics, stainless steel and fiber optics. Refined, or cathode, copper is also an internationally traded commodity.

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According to the Copper Development Association Inc., a trade association, copper’s world-wide end-use markets in 2012 (and their estimated shares of total consumption) were:
•
Building construction—43%
•
Electrical and electronic products—20%
•
Transportation equipment—18%
•
Consumer and general products—12%
•
Industrial machinery and equipment—7%
Copper Supply
A combination of current mine production and recycled scrap material make up the annual copper supply.
Copper Price
Copper is an internationally traded commodity, and its prices are determined by the major metals exchanges: the London Metal Exchange (“LME”), the Shanghai Futures Exchange and the COMEX division of the New York Mercantile Exchange. Prices on these exchanges generally reflect the worldwide balance of copper supply and demand and can be volatile and cyclical. In general, demand for copper reflects the rate of underlying world economic growth, particularly in industrial production and construction.
The following table shows the high, low and average daily LME spot copper prices in US dollars per pound over the past ten years:
Year
High
Low
Average
2004
$1.49
$1.06
$1.30
2005
2.11
1.39
1.67
2006
3.99
2.05
3.05
2007
3.76
2.40
3.23
2008
4.07
1.25
3.15
2009
3.33
1.38
2.34
2010
4.42
2.76
3.42
2011
4.62
3.05
4.00
2012
3.96
3.30
3.61
2013
3.75
3.01
3.32
On February 17, 2014, the copper closing price on the LME was $3.27 per pound.
Gold
General
We produced 21,107 ounces of gold in concentrate in 2013 containing 20,374 ounces of payable gold. In September 2013, the first copper-gold concentrate was produced at Mt. Milligan Mine, with start-up and commencement of production as of that date. Production from Mt. Milligan Mine is in the form of saleable concentrate that is sold to smelters for further treatment and refining and to merchants who transact with smelters. In 2013, 1% of our product sales were attributable to gold.
Gold Uses
Gold generally is used for fabrication or investment. Fabricated gold has a variety of end uses, including jewelry, electronics, dentistry, industrial and decorative uses, medals, medallions and official coins. Gold investors buy gold bullion, official coins and jewelry.
Gold Supply
A combination of current mine production, recycling and draw-down of existing gold stocks held by governments, financial institutions, industrial organizations and private individuals make up the annual world-wide gold supply.
Gold Price
The price of gold is volatile and is affected by numerous factors. Factors affecting the market for gold include the sale or purchase of gold by various central banks and financial institutions, inflation, recession, fluctuation in the relative values of the

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US dollar and foreign currencies, changes in global and regional gold demand and political and economic conditions throughout the world.
The following table presents the high, low and average London P.M. fixed prices for gold per ounce on the London Bullion Market in US dollars over the past ten years:
Year
High
Low
Average
2004
$454
$375
$410
2005
537
411
445
2006
725
525
604
2007
841
608
695
2008
1,011
713
872
2009
1,213
810
972
2010
1,421
1,058
1,225
2011
1,895
1,319
1,572
2012
1,792
1,540
1,669
2013
1,694
1,195
1,418
On February 17, 2014, the gold closing price on the London Bullion Market was $1,327 per ounce.
Copper and Gold Sales
We are party to three concentrate sales agreements for the sale of copper-gold concentrate produced at Mt. Milligan Mine. Pursuant to these agreements, we have agreed to sell an aggregate of approximately 85% of the copper-gold concentrate produced at Mt. Milligan Mine during 2013 and 2014 and an aggregate of approximately 120,000 dry metric tons in each of the two calendar years thereafter. Under one of the agreements, we have the option to sell to the counterparty, and the counterparty has the obligation to purchase from us, up to 40,000 dry metric tons of additional concentrate per year during each of 2015 and 2016. Pricing under these concentrate sales agreements will be determined by reference to specified published reference prices during the applicable quotation periods. Payment for the concentrate will be based on the price for the agreed copper and gold content of the parcels delivered, less smelting and refining charges and certain other deductions, if applicable. The copper smelting and refining charges will be negotiated in good faith and agreed by the parties for each contract year based on terms generally acknowledged as industry benchmark terms. The gold refining charges are as specified in the agreements.
In three separate transactions that were consummated in 2010, 2011 and 2012, we committed to sell an aggregate of 52.25% of the refined gold production from Mt. Milligan Mine to a subsidiary of Royal Gold, Inc. (“Royal Gold”). We received upfront cash payments totaling $781.5 million, and Royal Gold agreed to pay $435 per ounce, or the prevailing market rate if lower than $435 per ounce, when the gold is delivered. We used the funds we received from Royal Gold in our purchase of Terrane and in the construction of Mt. Milligan Mine. For more information about these transactions, see Note 10.
Molybdenum
General
We produced 29.9 million pounds of molybdenum in 2013. We are a significant molybdenum supplier to the global steel and chemicals sectors. We currently source molybdenum from our two primary mines and from purchased molybdenum concentrates. Our principal products are molybdic oxide (also known as roasted molybdenum concentrate) and ferromolybdenum. In 2013, these two commodity products collectively accounted for approximately 75% of our molybdenum sales. Other products we produce include high soluble technical oxide, pure molybdenum trioxide and high purity molybdenum disulfide. In 2013, 97% of our product sales were attributable to molybdenum.
Molybdenum Uses
Molybdenum is an industrial metal principally used for metallurgical applications as a ferro-alloy in steels where high strength, temperature-resistant or corrosion-resistant properties are sought. The addition of molybdenum enhances the strength, toughness and wear- and corrosion-resistance in steels when added as an alloy. Molybdenum is used in major industries including chemical and petro-chemical processing, oil and gas for drilling and pipelines, power generation, automotive and aerospace. Molybdenum is also widely used in non-metallurgical applications such as petroleum catalysts, lubricants, flame-retardants in plastics, water treatment and as a pigment.

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According to the International Molybdenum Association, a trade association, the world-wide end-use markets for mined molybdenum ore (not scrap material recycled by chemical processes or re-smelting) in 2012 (and their estimated share of total consumption) were:
•
Construction steel—43%
•
Stainless steel—22%
•
Chemicals—12%
•
Tool and high-speed steel—8%
•
Cast iron—8%
•
Molybdenum metal—5%
•
Super alloys—3%
Molybdenum Supply
A combination of current mine production and recycled scrap material make up the annual molybdenum supply. Molybdenum is mined from both primary mines, ones that contain only molybdenum as an economic mineral, and as a by-product from certain copper mines.
Molybdenum Price
Molybdenum prices are determined by transacting parties rather than by a metals exchange. Reference prices for molybdenum are available in several publications, including Platts Metals Week, Ryan’s Notes and Metal Bulletin. Molybdenum prices generally reflect the worldwide balance of molybdenum supply and demand and can be volatile and cyclical. In general, demand for molybdenum reflects the rate of underlying world economic growth, particularly in industrial production and construction.
The table below shows the high, low and average prices quoted in Platts Metals Week for molybdenum in US dollars per pound for the last 10 years:
 
 
Molybdenum
(Dealer oxide
 Platts Metals Week)
Year
 
High
 
Low
 
Average
2004
 
$33.25
 
$7.20
 
$16.20
2005
 
40.00
 
24.00
 
31.98
2006
 
28.40
 
20.50
 
24.75
2007
 
34.25
 
24.30
 
30.00
2008
 
34.00
 
8.25
 
28.94
2009
 
18.30
 
7.70
 
11.08
2010
 
18.60
 
11.75
 
15.72
2011
 
18.00
 
12.60
 
15.49
2012
 
14.78
 
10.90
 
12.74
2013
 
12.00
 
9.08
 
10.30
On February 17, 2014, the average molybdenum price quoted in Platts Metals Week was $9.74 per pound.
MINES
The tables below set forth certain operating and production data for each of the periods indicated:


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Summary operational statistics
 
 
Years Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
Copper
 
 
 
 
 
 
 
 
 
 
Payable production (000's lb)
 
10,352
 
—
 
—
 
—
 
—
Cash cost ($/payable lb produced) - By-Product (1)
 
$7.76
 
—
 
—
 
—
 
—
Cash cost ($/payable lb produced) - Co-Product (1)
 
$5.36
 
—
 
—
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
Gold
 
 
 
 
 
 
 
 
 
 
Payable production (troy oz)
 
20,374
 
—
 
—
 
—
 
—
Cash cost ($/payable troy oz produced) - Co-Product (1)
 
$1,456
 
—
 
—
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
Molybdenum - Produced
 
 
 
 
 
 
 
 
 
 
TC Mine
 
 
 
 
 
 
 
 
 
 
Production (000's lb)
 
20,889
 
16,238
 
21,368
 
25,071
 
17,813
Cash cost ($/lb produced)
 
$4.57
 
$8.06
 
$6.66
 
$5.20
 
$5.72
Endako Mine (75%)
 
 
 
 
 
 
 
 
 
 
Production (000's lb)
 
9,056
 
6,191
 
6,977
 
7,506
 
7,447
Cash cost ($/lb produced)
 
$10.93
 
$15.42
 
$11.86
 
$8.89
 
$6.13
 
 
 
 
 
 
 
 
 
 
 
Total molybdenum production (2)
 
29,945
 
22,429
 
28,345
 
32,577
 
25,260
Total average cash cost ($/lb produced) (1)
 
$6.49
 
$10.09
 
$7.94
 
$6.07
 
$5.84
 
 
 
 
 
 
 
 
 
 
 
Molybdenum - Processed
 
 
 
 
 
 
 
 
 
 
Langeloth Facility
 
 
 
 
 
 
 
 
 
 
Molybdenum Sold from Purchased Product (000's lb)
 
5,054
 
10,542
 
8,245
 
7,855
 
4,683
Toll Roasted and Upgraded Molybdenum Processed (000's lb)
 
3,782
 
6,296
 
7,071
 
5,703
 
3,841
Roasted Metal Products Processed (000's lb)
 
17,784
 
12,153
 
17,090
 
18,334
 
10,030
_______________________________________________________________________________

(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 our mines but excludes molybdenum processed from purchased products.
Properties net book value
At December 31, 2013, the net book values of our properties were as follows:
Property
Net Book Value
 
(US$ millions)
Mt. Milligan
$2,242.8
TC Mine
40.6
Endako
115.6
Berg property
36.6
Maze Lake property
2.9
Langeloth Facility
88.6
Corporate and other
10.9
Total
$2,538.0

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Mt. Milligan Mine
General
Mt. Milligan Mine is a conventional truck-shovel open-pit copper and gold mine and concentrator with a 66,000 ton per day design capacity copper flotation processing plant. Mt. Milligan Mine has an estimated life of approximately 22 years (based on a copper price of $1.60 per pound and a gold price of $690 per ounce) and estimated average annual production of 81 million pounds of copper and 194,500 ounces of gold, each in concentrate, over the life of the mine.
In October 2010, we acquired the Mt. Milligan development project as part of our acquisition of Terrane, and began construction shortly thereafter. On August 15, 2013, the phased start-up of the mine operation began with the first feed to the concentrator. In September 2013, the first copper-gold concentrate was produced at the mine. Mt. Milligan Mine reached commercial production as of February 18, 2014, defined as operation of the mill at 60% design capacity mill throughput for 30 days.
Mt. Milligan Mine is located within the Omenica Mining Division in North Central British Columbia, Canada, approximately 95 miles northwest of Prince George, 50 miles north of Fort St. James and 60 miles west of Mackenzie. Mt. Milligan Mine is accessible by commercial air carrier to Prince George, British Columbia, then by vehicle from the east via Mackenzie on the Finlay Philip Forest Service Road and the North Philip Forest Service Road, and from the west via Fort St. James on the North Road and Rainbow Forest Service Road. Road travel to the Mt. Milligan property site is 482 miles from Prince Rupert and 158 miles from Prince George. The forestry-based communities of Mackenzie and Fort St. James are within daily commuting distance of the Mt. Milligan site, and both of these communities are serviced by rail. The infrastructure at Mt. Milligan Mine includes a concentrator, a tailings storage facility and reclaim water ponds, an administrative building and change house, a truckshop/warehouse, a permanent operations residence, a first aid station, an emergency vehicle storage, a laboratory and sewage and water treatment facilities. The power supply is provided by B.C. Hydro via a 57-mile hydroelectric power line. We transport concentrate from the mine site to Mackenzie via truck, and from there transport it by railway to the port of Vancouver for shipment to customers.
Mt. Milligan Mine includes 100 claims and one mining lease with a combined area of 114,339 acres. The single mining lease that was issued to Terrane on September 9, 2009, expires on September 9, 2029, and requires a lease payment of approximately $100,000, due annually on September 9. Mineral claims are subject to exploration expenditure obligations, or we may choose to pay annual fees to the Province in lieu of exploration expenditures. All mineral claims are in good standing and expiry dates range from September 2014 to December 2014. We expect to renew such mineral claims in the ordinary course.
A 2% net smelter return royalty, commencing in the third year of commercial production, is payable to a previous owner of the property. The royalty holder, H.R.S. Resources Corp. (successor in interest to Richard Haslinger), has the right to receive annual advances of C$20,000, first payable on or before December 31, 1994, and on each anniversary after the first advance until the commencement of commercial production, which payments have been maintained. We have a right of first refusal on any proposed disposition of the net smelter return royalty by H.R.S. Resources Corp.

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We have also agreed to make certain payments to a First Nation over the course of the life of mine. We do not consider the amounts of these payments to be material to our business. The terms of the agreement under which we have agreed to make these payments are confidential.
As described above, in three separate transactions that were consummated in 2010, 2011 and 2012, we committed to sell an aggregate of 52.25% of the refined gold production from Mt. Milligan Mine to Royal Gold. For more information about these transactions, see Note 10.
History
Limited exploration activity on Mt. Milligan was first recorded in 1937. In 1984, prospector Richard Haslinger and BP Resources Canada Limited located claims on the site. In 1986, Lincoln Resources Inc. ("Lincoln") optioned the claims and in 1987 completed a diamond drilling program that led to the discovery of significant copper-gold mineralization. In 1991, Placer Development Ltd. (which became Placer Dome Inc.) ("Placer") acquired Lincoln's interest in the Mt. Milligan property, resumed exploration drilling, completed a pre-feasibility study and applied for provincial and federal approvals to develop the project. These approvals expired in 2003. Barrick Gold Corporation purchased Placer in 2006 and sold its Canadian assets to Goldcorp Inc., which then in turn sold its interest in Mt. Milligan to Atlas Cromwell. Atlas Cromwell then changed its name to Terrane Metals Corp. In October 2010, we acquired Terrane and the Mt. Milligan project.
Geology, Deposit Types and Mineralization
Mt. Milligan Mine is a tabular, near-surface, alkalic copper-gold porphyry deposit that measures some 1.6 miles north-south, 1 mile east-west and is more than 1,300 feet thick. It consists of two principal deposits, the Main deposit and Southern Star deposit. The Main deposit includes four contiguous zones: MBX, WBX, DWBX and 66, all of which are spatially associated with the MBX monzonite stock and Rainbow Dyke. The Southern Star deposit is centered on a monzonite stock of the same name and is some 1,640 feet south of the Main deposit.
Mineralization consists primarily of chalcopyrite with lesser bornite and magnetite in areas of potassic alteration, and pyrite in areas of propylitic alteration. In the main deposit, mineralization is best developed in areas of potassic alteration, where copper and gold grades are related to chalcopyrite and pyrite. High gold values are found in each deposit, mostly associated with pyrite, but the highest gold grades are found in the 66 zone and are related mainly to pyrite mineralization.
Exploration
An 18,339-ft core drilling program was completed in 2011 to follow-up previous holes drilled into the footwall of the WBX and other stocks, where potential copper-gold mineralization was indicated at depth. A total of eight holes were drilled, testing primarily for down-faulted blocks of mineralized rock below the western portion of the current deposit and pit limits. An additional 2,845 feet of core was drilled in ten holes to provide new samples for metallurgical test work. There was no exploration activity at Mt. Milligan in 2013. We have no definitive exploration drilling program planned for 2014.
Thompson Creek Mine (TC Mine)
General

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TC Mine is an open-pit molybdenum mine and concentrator located approximately 30 miles southwest of the town of Challis, Idaho, USA, with an estimated mine life of approximately 8 years (based on a molybdenum price of $10.00 per pound). TC Mine is accessible by commercial air carrier into the cities of Idaho Falls, Sun Valley and Boise, Idaho. Vehicle access to the mine is available by highway and gravel roads from each of these cities.
The TC Mine land holdings are comprised of 1,589 patented and unpatented lode, mill site and placer claims along with fee owned property totaling approximately 24,600 acres. All current ore reserves are located on patented mineral claims and are not expected to be subject to any US federal government royalties that may be enacted in the future. Approximately 50% of the mineral claims are located within the boundaries of the Salmon-Challis National Forest, with the remaining 50% located within the perimeter of land managed by the United States Bureau of Land Management. Annual assessment fees, totaling approximately $150,000, were made to the United States Bureau of Land Management in 2013 to maintain 1,097 unpatented mining claims at TC Mine through August 2014. We also paid state and county property taxes of $766,000 in 2013. Currently there is no mining taking place on property that requires the payment of a royalty.
The TC Mine operation consists of an open-pit mine, ore crusher and conveyer system, mill and concentrator, tailings and containment dam, an administrative building, a truckshop/warehouse and support facilities. Open-pit mining began at TC Mine in 1983. Material mined from TC Mine is treated at a processing plant on site, and concentrate material is transported to our Langeloth Facility. Electric power is provided to the site by the Salmon River Electric Co-op through a 24.7 mile 230 kV power line to the South Butte Substation, then by a 2.6 mile 69 kV line to the mill site. Both of these lines are owned by TC Mine. Fresh water for TC Mine is pumped from the Salmon River.
As of the date hereof, given declines in molybdenum prices and projected operating costs at TC Mine for 2015 and thereafter, in October 2012, we suspended waste stripping activity associated with Phase 8. Since that time, the molybdenum market has continued to weaken and, as a result, we decided to put TC Mine on care and maintenance when the mining of Phase 7 is completed, which is expected to be in the fourth quarter of 2014. We intend to preserve the assets at TC Mine while it is on care and maintenance to enable us to re-commence operations if and when molybdenum market conditions improve. We continue to evaluate potential economically viable options for Phase 8.
History
The TC Mine deposit was discovered in 1968 by Cyprus Mines Corporation ("Cyprus"). Surface exploration, diamond and reverse circulation drilling were done by Cyprus. Cyprus started construction of the mine in 1981, with full production beginning in 1983 and continuing until 1992 when operations were suspended due to depressed molybdenum prices. In 1993, we purchased the mine and resumed operations in 1994, which have continued to the present. The mine operated continuously from 1994 through the present, however, production was reduced during 2008 and 2009 due to reduced demand for molybdenum during that period.
Geology, Deposit Types and Mineralization
The TC Mine porphyry molybdenum deposit is located near the structural intersection of two geologic provinces: continental, arc-related intrusive rocks of the late Cretaceous Idaho Batholith (the "Idaho Batholith") are exposed to the west of the mine, while complexly deformed Paleozoic metasedimentary rocks are dominant to the east. The Idaho Batholith is a multi-phase, long-lived intrusion with a granitic to granodioritic composition. Paleozoic metasedimentary rocks form the wall-rock portions of the TC Mine deposit. Historic mining within the district was associated with syngenetic stratiform base-, precious-metal (i.e. lead-silver) mineralization which is locally developed in the Paleozoic units. The majority of the TC Mine molybdenum deposit is hosted within igneous rocks of the TC Mine intrusive complex, with minor amounts found within adjacent metasediments.
The TC Mine deposit is classified as an intrusive-hosted molybdenum porphyry system. Porphyry molybdenum deposits are divided into two subtypes: Climax-type and Quartz Monzonite (Endako)-type. TC Mine belongs to the Quartz Monzonite category. In contrast to the rift-related (extensional) Climax-type deposits, the Quartz Monzonite-type deposits are formed by subduction-related (compressional) processes. Molybdenum mineralization at TC Mine is primarily hosted in a composite granodiorite-quartz monzonite stock of Cretaceous age (i.e. TC Mine intrusive complex). This composite stock intruded carbonaceous and locally limy argillite (i.e. metasediments) of the Mississippian Copper Basin Formation. Where it is in contact with the TC Mine intrusive complex, the argillite has been contact-metamorphosed to hornfels and locally to skarn. The intrusive and sedimentary rocks are unconformably overlain by the Eocene Challis Volcanics, a post-mineral sequence of andesite to rhyodacite tuffs, flows and agglomerates. Locally, the volcanic cover is up to 1,000 feet thick. These volcanic rocks fill valleys and depressions in the paleotopography around the TC Mine site.
Exploration

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On-site 2013 exploration activities around and peripheral to the TC Mine infrastructure consisted of surface mapping and rock sampling. During 2013, a drilling permit was approved by the United States Forest Service for exploration drilling of targets identified within the Bruno Creek drainage east of the current mine infrastructure. There were no exploration activities performed on the off-site Long Canyon and Little Fall Creek properties in 2013.
Annual assessment fees, totaling approximately $90,000, were made to the United States Bureau of Land Management in 2013 to maintain 631 unpatented lode mining claims at both the Long Canyon and Little Fall Creek properties through August 2014.
On-site exploration activities in the TC Mine area in 2014 are expected to be minimal and may include surface mapping, rock sampling and target identification. No exploration work other than routine claim maintenance is planned for the off-site Long Canyon and Little Fall Creek properties in 2014.
Endako Mine
General
Endako Mine is an open-pit molybdenum mine, concentrator and roaster located approximately 100 miles west of Prince George, British Columbia, Canada, with an estimated mine life of approximately 3.5 years (based on a molybdenum price of $10.00 per pound).
Endako Mine is accessible by commercial air carrier to Prince George, British Columbia, then by vehicle west on a paved highway for approximately 100 miles, then south on the Endako Mine road for an additional 6.8 miles. In March 2012, we completed a mill expansion project at Endako Mine. The expansion project included the construction of a new mill to replace the previous mill constructed in the 1960’s. The new mill is designed to process 55,000 tons of ore per day compared to 31,000 tons per day in the old mill. The previous 45-year old mill at the site has been shut down and is currently on care and maintenance.
Endako Mine is operated as a joint venture (the "Endako Mine Joint Venture") between Thompson Creek Mining Ltd. ("TCML"), one of our subsidiaries, which holds a 75% interest, and Sojitz Moly Resources, Inc. (“Sojitz”), a subsidiary of Sojitz Corporation, which holds the remaining 25% interest. See "Endako Mine Joint Venture" below for further details regarding the Endako Mine Joint Venture.
The property is currently comprised of a contiguous group of 81 mineral tenures containing 56 claims and 25 leases, covering approximately 32,509 acres. In addition, the Endako Mine Joint Venture holds surface rights to a portion of the mine site area. The mineral leases are subject to annual fees, and the mineral claims are subject to exploration expenditure obligations. We may choose to pay annual fees to the province in lieu of exploration expenditures. All mineral claims are in good standing, and expiry dates range from March 2017 to February 2023. We expect to renew such mineral claims in the ordinary course.
Endako Mine deposit is divided into four named areas: Northwest, Denak West, Denak East and Endako. Mining is in progress or has occurred in the Endako and both Denak areas. The Northwest zone is yet to be produced. The property contains

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processing facilities, waste dumps and tailings disposal areas. There are no royalties, back-in rights, encumbrances on title or other agreements, other than the agreement governing the Endako Mine Joint Venture. The infrastructure at Endako Mine includes a 55,000 ton per day concentrator, a 40,000 to 45,000 pound per day roaster (and an additional non-operating roaster), tailings and reclaim water ponds, a crushing plant, an administrative building, a truckshop/warehouse, a change house, a first aid station, a laboratory, a garage and other shops. The power supply of the site is provided by a 5.3 mile, 69 kV power line owned by B.C. Hydro from a nearby substation. Water for the milling process is re-circulated from the tailings facility while make-up water is pumped from François Lake, located nearby.
In an effort to reduce costs at Endako Mine, we ceased mining new ore at the Mine in the third quarter of 2012 and began exclusively processing stockpiled ore. We resumed mining of new ore during the second quarter of 2013 and are now processing both mined and stockpiled material. In early 2013, we also ceased roasting at Endako Mine, and instead transported Endako’s concentrate via truck and rail to our Langeloth Facility for roasting and delivery to customers.
History
The Endako Mine deposit was discovered in 1927 by local hunters. Minor underground exploration work took place in subsequent years. In 1962, R&P Metals Corporation Ltd. began a diamond drilling program to evaluate the discovery and, based on the exploration results, incorporated a company named Endako Mines Ltd. Canadian Exploration Limited, a wholly owned subsidiary of Placer, entered into an option agreement with Endako Mines Ltd. in August 1962 and continued exploration on the property.
In March 1964, Placer decided to place the property into production. Production commenced in June 1965 at a plant capacity of approximately 10,000 tons per day (combined concentrator and roaster). Expansions in 1967 and improvements in 1980 increased the concentrator capacity. In 1982, the mine and concentrator were closed due to low molybdenum prices, but the roaster continued to operate, processing molybdenum concentrates from other operations on a toll basis.
The mine and mill were re-opened in 1986, and by 1989 production reached approximately 31,000 tons per day. In June 1997, the parties to the Endako Mine Joint Venture purchased Endako Mine from Placer.
Geology, Deposit Types and Mineralization
The Endako Mine deposit is located within the intermontane morphology/tectonic belt of British Columbia, Canada. The Endako Mine molybdenite deposit is hosted in the Endako quartz monzonite intrusive, a phase of the middle to late Jurassic François Lake Intrusions that form a large composite batholith. The deposit is genetically associated with the terminal stages of magmatic activity, represented by intrusion of the Casey monzogranite.
Molybdenite is the primary metallic mineral on the Endako Mine property. Minor pyrite, magnetite and chalcopyrite, and traces of sphalerite, bornite, specularite and scheelite are also present. Single occurrences of beryl and bismuthinite have been reported. Molybdenite occurs in two types of veins. Large veins (up to 4 feet wide) contain laminae and fine disseminations of molybdenite. The second vein type occurs as stockworks adjacent to the major veins in the form of fine fracture-fillings and veinlets of quartz-molybdenite. Pyrite is most abundant along the southern margin of the zone of molybdenum mineralization.
Exploration
No exploration activities were completed in 2013, and no exploration activities are planned for 2014, on the Endako Mine land tenure. In order to allow mining in the areas we refer to as the Denak West Extension, we have filed a claim to lease application with the British Columbia Mineral Titles Branch. The application, filed on November 7, 2013, requests the conversion of 24 mineral claims to a mining lease.
Endako Mine Joint Venture
The Endako Mine Joint Venture was formed on June 12, 1997 pursuant to the terms of the Exploration, Development and Mine Operating Agreement between TCML and Sojitz (the "Endako Mine Joint Venture Agreement"). We have been appointed manager of the Endako Mine Joint Venture with overall management responsibility for operations. As manager, we prepare annual budgets and production plans and submit them to Sojitz for approval. In the event Sojitz rejects any or all of a proposed budget or production plan, the parties are required to work to develop a mutually acceptable budget and production plan. As manager, we manage, direct and control Endako Mine, provided that each of the following actions requires the approval of both us and Sojitz: (i) disposition of all or a substantial portion of the Endako Mine assets; (ii) contracts with affiliates over $500,000 or sales of product to our affiliates or affiliates of Sojitz; (iii) compensation for management of the business; (iv) modification of the Endako Mine Joint Venture Agreement; (v) any change in business purpose; (vi) any modifications or replacements to the production plan for Endako Mine; (vii) investment in other companies; (viii) any borrowing by the joint venture or loan to any third party or any guarantee; (ix) changes in the manager, other than by reasons of default; and (x) except in the case of emergency or unexpected expenditures, a discretionary capital expenditure in excess of $1.0 million. Our and Sojitz's

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participating interests in the joint venture are currently 75% and 25%, respectively; those interests may be recalculated under certain circumstances set forth in the Endako Mine Joint Venture Agreement.
OTHER OPERATING PROPERTIES
Langeloth Metallurgical Facility
Our wholly-owned Langeloth Facility is located in Langeloth, Pennsylvania, approximately 25 miles west of Pittsburgh, on land we own in fee simple. The facility receives molybdenum disulfide concentrate from TC Mine, Endako Mine and from third party producers that is either purchased for processing and re-sale or that is toll converted to finished products for third parties. The facility produces and sells ammonium perrhenate and rhenium metal pellets as well as sulfuric acid all recovered as by-products of processing the molybdenum disulfide. In addition, the Langeloth Facility calcines other metal containing materials from various third-party operations.
Four multiple-hearth furnaces are used for the conversion (roasting) of molybdenum disulfide concentrate into technical grade molybdenum oxide. These four roasters have the annual capacity to process 35 million pounds of molybdenum contained in concentrates. The molybdenum oxide can be sold as a finished product to customers or can be upgraded at the facility to molybdenum oxide briquettes, pure molybdenum trioxide powder or various sizes of ferromolybdenum products. Two furnaces are used to calcine non-hazardous metal containing materials that contain metals other than molybdenum.
The plant has been and continues to be upgraded by an ongoing capital improvement program. Further, an acid plant shutdown occurs approximately every other year to refurbish acid plant process equipment. Following an extended 7 week shutdown in 2012, there was no shutdown in 2013, nor one planned for 2014.
EXPLORATION PROPERTIES
Berg Property
In October 2010, we acquired the Berg property as part of the Terrane acquisition. The Berg property is a copper, molybdenum, and silver exploration property that is located in the Omineca Mining Division within the Tahtsa Ranges of west-central British Columbia, Canada approximately 52 miles southwest of Houston and 14 miles northwest of the Huckleberry Mine. The Berg property is comprised of 113 mineral claims and one mining lease centered at 53° 48' North Latitude and 127° 26' West Longitude for a total of approximately 110,190 acres.
The Berg property is 100% owned by us with a 1% net smelter return royalty held by Royal Gold on eight of the mineral claims and one mining lease, including those which host the deposit on the Berg property. All mineral claims and the mining lease are in good standing and good to dates ranging from June 2014 to November 2021. Mineral claims are subject to exploration expenditure obligations, or we may choose to pay annual fees to the province in lieu of exploration expenditures. We expect to renew such mineral claims and mining lease in the ordinary course.
Drilling on the property was initiated by Kennecott in 1965, and this led to the delineation of two main mineralized zones. In 1972, exploration and development of the Berg property were taken over by another owner under agreement with Kennecott, and by 1980, a total of 119 diamond drill holes for 66,036 feet had been completed on the Berg property. In 2007 and 2008, Terrane carried out diamond drill programs totaling 75,290 feet in 60 holes designed to confirm the results of previous work and define the resource with infill and step-out drilling, particularly below the historic resource, and provide fresh material for metallurgical test work. In 2011, we commissioned additional exploration and drilling delineation to support an advanced scoping study. The 2011 drilling program included 10,678 meters of drilling (35,024 feet). In 2013 no new drilling or field investigations were completed; however, we continued to maintain environmental baseline monitoring programs that were previously in progress. In 2014, certain environmental monitoring programs will continue, no additional drilling or field work is anticipated at this time.
Maze Lake Property
The Maze Lake property is an early-stage gold exploration project located in the Kivalliq District of Nunavut in Canada, 56 miles southwest of Rankin Inlet and 28 miles west of Whale Cove, both on Hudson Bay. An interest in the property was acquired by Terrane following the discovery of an 18 mile long gold trend that was identified by regional till sampling in 2000. The Maze Lake property consists of property covered by three Inuit Owned Lands Mineral Exploration Agreements with a total area of 30,663 acres. Such Agreements allow us to terminate our interest in the property at any time. 
In 2008, Terrane formed a joint venture (the "MLJV") with Laurentian Goldfields Ltd. to explore and develop the Maze Lake property. Upon formation of the MLJV, Terrane contributed its Maze Lake mining interests to the MLJV in return for a 43% interest in the MLJV. We acquired Terrane's interest in the MLJV in October 2010 as part of the Terrane acquisition. In

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June 2013, we acquired Laurentian Goldfields Ltd.’s interest in the MLJV, granted a 1% net smelter return royalty to Laurentian Goldfields Ltd., and terminated the MLJV.
The Mineral Exploration Agreements are in good standing, with the next annual holding fee of $49,636 being due April 1, 2014 and the annual assessment work or payment of assessment work deficiency in the amount of $162,329 being due June 30, 2014. In 2013, no drilling or field investigations were completed on the property. In 2014, we expect to complete remediation work on the property to remove certain barrels and other property relating to past exploration work. No additional drilling or field work is planned.
SOURCES AND AVAILABILITY OF RAW MATERIALS
Our mining operations require significant energy, principally electricity, diesel and natural gas. Most of our energy is obtained from third parties under long-term contracts. Our mining operations also require significant quantities of water for mining, ore processing and related support facilities. Although we believe we have sufficient water rights to conduct our mining operations, the loss of water rights for any of our mines, in whole or in part, or shortages of water to which we have rights, could require us to curtail or shut down mining operations. For a further discussion of risks and legal proceedings associated with the availability of water, refer to Item 1A. "Risk Factors" and Item 3. "Legal Proceedings."
COMPETITION
The mining industry is intensely competitive. Our competitive position is based on the quality and grade of our mineral reserves, our ability to manage our costs compared to other producers throughout the world, our ability to maintain our financial integrity through the lows of the metal price cycles, and our ability to manage our customer relationships. Our costs are governed to a large extent by the location, grade and nature of our mineral reserves, our input costs including energy, labor and equipment, and our operating and management skills. The metals markets are cyclical, and our ability to maintain our competitive position over the long term is based on our ability to manage our costs, acquire and develop quality deposits, and hire and retain a skilled workforce. Our substantial indebtedness will limit our ability to significantly grow our business in the near term. While we intend to continue to grow our business through our exploration program and through future acquisitions in the long term, many of our competitors possess more financial, technical and other resources than we do.
Until we began producing concentrate from Mt. Milligan Mine in late 2013, we exclusively mined molybdenum, and were thus subject to unique competitive advantages and disadvantages related to the price of molybdenum. With the completion of Mt. Milligan Mine, we have diversified into production of copper and gold as well as molybdenum, and are thus less sensitive to fluctuations in the price of molybdenum.
EMPLOYEES
As of December 31, 2013, we employed approximately 1,240 people (approximately 780 in Canada and 460 in the United States).
Approximately 75% of employees at the Langeloth Facility are members of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America union through its Local 1311. In January 2013, a new labor agreement was reached with the union at the Langeloth Facility to cover the period from March 11, 2013 through March 11, 2016. Approximately 75% of Endako Mine's employees are members of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union through its Local 1-424. In January 2014, a labor agreement was reached with the union at Endako Mine for the period from April 1, 2013 to March 31, 2015. We believe that our relations with all of our employees are good.
ENVIRONMENTAL MATTERS
Our mining and exploration activities are subject to extensive federal, provincial, state and local laws, regulations and permits governing protection of the environment. Among other things, our Canadian operations must comply with authorizations issued under the provincial Mines Act and the Environmental Management Act. We also implement Fish Habitat Compensation Plans at Mt. Milligan Mine under the Fisheries Act and the Metal Mining Effluent Regulations. In the United States, TC Mine has permits issued under the federal Clean Water Act and Clean Air Act. Our tailings storage facility at TC Mine is governed by an Idaho statute administered by the Idaho Department of Water Resources. Our primary permits at the Langeloth Metallurgical Facility are issued under the federal Clean Water Act and Clean Air Act, both of which are implemented in Pennsylvania by the state Department of Environmental Protection.
Our policy is to conduct business in a way that safeguards public health and the environment. We believe that our operations are in compliance with applicable environmental laws and regulations in all material respects. Regular monitoring and compliance with periodic reporting requirements are integral components of all our environmental permits and authorizations. In Canada, we also conduct Environmental Effects Monitoring, which is a cyclical receiving-environment

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monitoring program to assess the potential effects of effluent on the fish population, fish tissue and the benthic invertebrate community.
From time to time, we have sought modifications of our Plan of Operations for TC Mine, the Mines Act permits for our Canadian operations or other environmental permits and authorizations. In these instances, we have been required to prepare detailed baseline studies and environmental analyses under the National Environmental Policy Act in the United States and comparable provisions of Canadian law. There is no assurance that such modifications of our permits and authorizations will be granted by the administrative agencies and ministries. Even if approved, the authorizations may include terms and conditions that adversely affect our ability to operate effectively or economically.
The costs associated with implementation and compliance with environmental requirements are substantial and possible future legislation and regulations could cause additional operating expense, capital expenditures, restrictions and delays in the development and continued operation of our properties, the extent of which cannot be predicted with certainty. In the context of environmental permitting, including approval of reclamation plans and compliance with long-term, post-reclamation obligations, we are required to comply with known standards and regulations, which may entail significant costs.
Estimated future reclamation costs are based primarily on legal and regulatory requirements. As of December 31, 2013, we have provided financial assurance for reclamation costs of approximately $42.4 million at TC Mine, $14.4 million at Endako Mine (of which our 75% share is approximately $10.8 million) and $28.2 million for Mt. Milligan. Environmental laws and regulations generally have become more stringent and restrictive during the life of our operations. Our reclamation obligations and the related financial assurances we are required to provide likely will increase over time.
In addition to statutory and regulatory compliance, we are developing plans and programs to promote sustainability in our business and are committed to building long-term relationships with the communities in which we operate. At Mt. Milligan Mine, we have implemented a Community Sustainability Committee, by which we meet quarterly with representatives of the local communities and First Nations. We have also prepared and implemented an Environmental, Health and Safety Management System that is intended to comply with ISO 14001:2004 and OHSAS 18001.
For a further discussion of risks associated with environmental matters, refer to Item 1A. "Risk Factors."
MINERAL RESERVES
Our proven and probable mineral reserves have been estimated in accordance with the definitions of such terms adopted by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and incorporated in National Instrument 43-101 ("NI 43-101") by Canadian securities regulatory authorities. Technical reports have been filed regarding the disclosure of mineral reserves for our material properties as required by NI 43-101; namely Mt. Milligan Mine, TC Mine and Endako Mine. The proven and probable mineral reserves are those tonnages contained within economically optimized pits, configured using current and predicted mining and processing methods and related operating costs and performance parameters. Mineral reserve estimates reflect our reasonable expectation that all necessary permits and approvals will be obtained and maintained. We believe that our proven and probable mineral reserves are equivalent to proven and probable reserves as defined by the Securities and Exchange Commission's (the "SEC") Industry Guide 7. See the Glossary of Terms below for an explanation of mining terms used in this report.
The estimation of mineral reserves is constrained to an economically optimized pit based on all operating costs, including the costs to mine. Since all material lying within the optimized pit will be mined, the cut-off grade used in determining mineral reserves is estimated based on the material that, having been mined, is economic to transport and process without regard to primary mining costs (i.e., mining costs that were appropriately applied at the economic optimization stage).
The QA/QC controls program used in connection with the estimation of our mineral reserves consists of regular insertion and analysis of blanks and standards to monitor laboratory performance.

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The following tables set forth the estimated copper and gold mineral reserves for Mt. Milligan as of December 31, 2013:
Proven and Probable Copper Mineral Reserves at December 31, 2013(1)
Property
 
Category
 
Short Tons
 
Metric Tonnes
 
Copper Grade
 
Contained Copper
 
 
 
 
(millions)
 
(millions)
 
(%Cu)
 
(millions of pounds)
Mt. Milligan
 
Proven—Mine
 
298.3
 
270.7
 
0.210
 
1,251
 
 
Proven—Stockpile
 
0.2
 
0.2
 
0.149
 
0.5
 
 
Probable—Mine
 
227.8
 
206.6
 
0.186
 
846
 
 
Probable—Stockpile
 
—
 
—
 
—
 
—
 
 
Proven + Probable
 
526.3
 
477.5
 
0.199
 
2,098
Total
 
Proven
 
 
 
 
 
 
 
1,252
 
 
Probable
 
 
 
 
 
 
 
846
 
 
Proven + Probable
 
 
 
 
 
 
 
2,098
Proven and Probable Gold Mineral Reserves at December 31, 2013(1)
Property
 
Category
 
Short Tons
 
Gold Grade
 
Metric Tonnes
 
Gold Grade
 
Contained Gold
 
 
 
 
(millions)
 
(ounces per ton)
 
(millions)
 
(gram per tonne)
 
(millions of ounces)
Mt. Milligan
 
Proven—Mine
 
298.3
 
0.013
 
270.7
 
0.437
 
3.81
 
 
Proven—Stockpile
 
0.2
 
0.018
 
0.2
 
0.604
 
0.003
 
 
Probable—Mine
 
227.8
 
0.009
 
206.6
 
0.322
 
2.14
 
 
Probable—Stockpile
 
—
 
—
 
—
 
—
 
—
 
 
Proven + Probable
 
526.3
 
0.011
 
477.5
 
0.388
 
5.95
Total
 
Proven
 
 
 
 
 
 
 
 
 
3.81
 
 
Probable
 
 
 
 
 
 
 
 
 
2.14
 
 
Proven + Probable
 
 
 
 
 
 
 
 
 
5.95
_______________________________________________________________________________
(1)     The mineral reserve estimates for Mt. Milligan Mine were prepared by Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101. The mineral reserve estimates were prepared using optimized pit shells at a $4.10/t NSR cut-off value, metal prices of $1.60/lb copper, $690/oz gold and an exchange rate of C$1.00/US$0.85, and incorporate estimated costs for milling, plant services, tailing services and general and administrative charges. The mineral reserve estimates are based on the cost and price assumptions included in a NI 43-101 technical report prepared for Terrane entitled "Technical Report—Feasibility Update Mt. Milligan Property—Northern BC" dated October 13, 2009 and filed on SEDAR on October 13, 2011. Mill recoveries vary by rock type and region but average 84.1% copper and 71.4% gold. Anticipated losses resulting from beneficiation average 4.9% copper and 3.5% gold.
The following table sets forth the estimated molybdenum mineral reserves for TC Mine and Endako Mine as of December 31, 2013:

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Proven and Probable Molybdenum Reserves at December 31, 2013 (1)
Mine
 
Category
 
Short Tons
 
Metric Tonnes
 
Molybdenum
Grade
 
Contained
Molybdenum
 
 
 
 
(millions)
 
(millions)
 
(%Mo)
 
(millions of pounds)
TC Mine
 
Proven—Mine
 
39.9
 
36.2
 
0.080
 
63.9
 
 
Proven—Stockpile
 
5.2
 
4.7
 
0.082
 
8.5
 
 
Probable—Mine
 
35.9
 
32.6
 
0.069
 
49.7
 
 
Probable—Stockpile
 
—
 
—
 
—
 
—
 
 
Proven + Probable
 
81.0
 
73.5
 
0.075
 
122.1
Endako Mine
 
Proven—Mine
 
25.1
 
22.8
 
0.061
 
30.7
 
 
Proven—Stockpile
 
8.6
 
7.8
 
0.039
 
6.7
 
 
Probable—Mine
 
21.1
 
19.2
 
0.058
 
24.6
 
 
Probable—Stockpile
 
17.7
 
16.0
 
0.039
 
13.8
 
 
Proven + Probable
 
72.5
 
65.8
 
0.052
 
75.8
Total
 
Proven
 
 
 
 
 
 
 
109.8
 
 
Probable
 
 
 
 
 
 
 
88.1
 
 
Proven + Probable
 
 
 
 
 
 
 
197.9
_______________________________________________________________________________

(1)
The mineral reserve estimates for TC Mine and Endako Mine were prepared by the TC Mine and Endako Mine staff, respectively, under the supervision of Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101. The mineral reserve estimates utilized a cut-off grade of 0.030% molybdenum ("Mo") and an average long-term molybdenum price of $10.00 per pound. The mineral reserve for Endako Mine is stated on a 100% basis; we own 75% of Endako Mine. Mill recoveries vary by rock type and region but average 88.3% at TC Mine and 77.3% at Endako Mine. Anticipated losses resulting from beneficiation average 1% at both TC Mine and Endako Mine.
Reconciliation of Year-End 2013 and 2012 Proven and Probable Copper Mineral Reserves (1)
 
 
Contained
Copper
 
Pounds
 
 
(millions of pounds)
 
(% of opening)
December 31, 2012
 
2,124
 
100%
Depletion (2)
 
(26.0)
 
(1)%
Revisions and additions
 
—
 
—
December 31, 2013
 
2,098
 
99%
_______________________________________________________________________________

(1)
The figures incorporated in the table above were prepared by Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101.

(2)
Depletion of mineral reserves reflects removal of in-situ pit reserves.
Reconciliation of Year-End 2013 and 2012 Proven and Probable Gold Mineral Reserves (1)
 
 
Contained
Gold
 
Ounces
 
 
(millions of ounces)
 
(% of opening)
December 31, 2012
 
6.03
 
100%
Depletion (2)
 
(0.08)
 
(1)%
Revisions and additions
 
—
 
—
December 31, 2013
 
5.95
 
99%
_______________________________________________________________________________


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(1)
The figures incorporated in the table above were prepared by Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101.

(2)
Depletion of mineral reserves reflects removal of in-situ pit reserves.
Reconciliation of Year-End 2013 and 2012 Proven and Probable Molybdenum Mineral Reserves (1)
 
 
TC Mine
 
Endako Mine
Property
 
Contained
Molybdenum
 
Pounds
 
Contained Molybdenum
 
 
Pounds
 
 
 
(millions of pounds)
 
(% of opening)
 
(millions of pounds)
 
 
(% of opening)
 
December 31, 2012
 
203.3
 
100%
 
312.6
 
 
100%
 
Depletions (2)
 
(22.7)
 
(11)%
 
(16.2)
 
 
(5)%
 
Revisions (3)
 
(58.5)
 
(29)%
 
(220.6)
 
 
(71)%
 
December 31, 2013
 
122.1
 
60%
 
75.8
 
 
24%
 
_______________________________________________________________________________

(1)
The figures incorporated in the table above were prepared by Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101.

(2)
Depletion of mineral reserves reflects both removal of in-situ pit reserves and drawdown of stockpile reserves.

(3)
Revisions reflect changes due to economic model updates and optimizations. All of the revisions are attributable to the recalculation of our molybdenum reserves utilizing an average long-term molybdenum price of $10 per pound. The reserves reflected in our Annual Report on Form 10-K for the year ended December 31, 2012 utilized a long-term molybdenum price of $12 per pound.
Reconciliation of Mineral Reserves Under NI 43-101 and Under SEC Industry Guide 7
As mineral reserves are reported under both NI 43-101 and SEC Industry Guide 7 standards, it is possible for mineral reserve figures to vary between the two standards due to the differences in reporting requirements under each standard. For example, NI 43-101 has a minimum requirement that mineral reserves be supported by a pre-feasibility study, whereas SEC Industry Guide 7 requires support from a detailed feasibility study that demonstrates that economic extraction is justified.
For our mineral reserves at December 31, 2013, there is no difference between the mineral reserves as disclosed under NI 43-101 and those disclosed under SEC Industry Guide 7, and therefore no reconciliation is provided.
NON-RESERVES—MEASURED AND INDICATED MINERAL RESOURCES
Cautionary note to US investors concerning estimates of measured and indicated mineral resources
This section uses the terms "measured mineral resources" and "indicated mineral resources." We advise US investors that, while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. US investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves.
The measured and indicated mineral resources which are reported herein do not include that part of our mineral resources that have been converted to proven and probable mineral reserves as shown above. Measured and indicated mineral resources have been estimated in accordance with the definitions of such terms adopted by the CIM and incorporated in NI 43-101. We have filed technical reports regarding the disclosure of mineral resources for TC Mine and Endako Mine, Mt. Milligan, and the Berg property. Measured and indicated mineral resources are equivalent to mineralized material as such term is defined in SEC Industry Guide 7. See the Glossary of Terms below for an explanation of mining terms used in this report.
The total measured and indicated mineral resources for all properties have been estimated at variable economic cut-off grades based on the metal prices provided below, and on economic parameters deemed realistic. The economic cut-off grades for mineral resources are lower than those for mineral reserves and are indicative of the fact that the mineral resource estimates include material that may become economic under more favorable conditions, including increases in metal prices.

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The following tables summarize our estimated non-reserves—measured and indicated mineral resources at December 31, 2013:
Measured and Indicated Copper Mineral Resources at December 31, 2013
 
 
Measured
 
Indicated
 
Measured & Indicated
Property
 
Short Tons
 
Metric Tonnes
 
Copper Grade
 
Short Tons
 
Metric Tonnes
 
Copper Grade
 
Short Tons
 
Metric Tonnes
 
Copper Grade
 
 
(millions)
 
(millions)
 
(%)
 
(millions)
 
(millions)
 
(%)
 
(millions)
 
(millions)
 
(%)
Mt. Milligan (1)
 
66.9
 
60.7
 
0.13
 
182.4
 
165.5
 
0.15
 
249.3
 
226.2
 
0.14
Berg Property (2)
 
58.8
 
53.3
 
0.48
 
499.0
 
452.7
 
0.28
 
557.8
 
506.0
 
0.30
Total 2013
 
125.7
 
114.0
 
0.29
 
681.4
 
618.2
 
0.24
 
807.1
 
732.2
 
0.25
Measured and Indicated Gold Mineral Resources at December 31, 2013 (Imperial)
 
 
Measured
 
Indicated
 
Measured & Indicated
Property
 
Short Tons
 
Gold Grade
 
Short Tons
 
Gold Grade
 
Short Tons
 
Gold Grade
 
 
(millions)
 
(oz/ton)
 
(millions)
 
(oz/ton)
 
(millions)
 
(oz/ton)
Mt. Milligan (1)
 
66.9
 
0.006
 
182.4
 
0.006
 
249.3
 
0.006
Measured and Indicated Gold Mineral Resources at December 31, 2013 (Metric)
 
 
Measured
 
Indicated
 
Measured & Indicated
Property
 
Metric Tonnes
 
Gold Grade
 
Metric Tonnes
 
Gold Grade
 
Metric Tonnes
 
Gold Grade
 
 
(millions)
 
(gram/tonne)
 
(millions)
 
(gram/tonne)
 
(millions)
 
(gram/tonne)
Mt. Milligan (1)
 
60.7
 
0.214
 
165.5
 
0.200
 
226.2
 
0.204
Measured and Indicated Molybdenum Mineral Resources at December 31, 2013
 
 
Measured
 
Indicated
 
Measured & Indicated
Property
 
Short Tons
 
Metric Tonnes
 
Molybdenum
Grade
 
Short Tons
 
Metric Tonnes
 
Molybdenum
Grade
 
Short Tons
 
Metric Tonnes
 
Molybdenum
Grade
 
 
(millions)
 
(millions)
 
(%)
 
(millions)
 
(millions)
 
(%)
 
(millions)
 
(millions)
 
(%)
TC Mine (3)
 
27.8
 
25.2
 
0.064
 
31.4
 
28.5
 
0.062
 
59.2
 
53.7
 
0.063
Endako Mine (3)
 
56.1
 
50.9
 
0.050
 
64.5
 
58.5
 
0.052
 
120.6
 
109.4
 
0.051
Berg Property (2)
 
58.8
 
53.3
 
0.030
 
499.0
 
452.7
 
0.038
 
557.8
 
506.0
 
0.037
Total 2013
 
142.7
 
129.4
 
0.044
 
594.9
 
539.7
 
0.041
 
737.6
 
669.1
 
0.042
Measured and Indicated Silver Mineral Resources at December 31, 2013 (Imperial)
 
 
Measured
 
Indicated
 
Measured & Indicated
Property
 
Short Tons
 
Silver Grade
 
Short Tons
 
Silver Grade
 
Short Tons
 
Silver Grade
 
 
(millions)
 
(oz/ton)
 
(millions)
 
(oz/ton)
 
(millions)
 
(oz/ton)
Berg Property (2)
 
58.8
 
0.131
 
499.0
 
0.108
 
557.8
 
0.110

Measured and Indicated Silver Mineral Resources at December 31, 2013 (Metric)
 
 
Measured
 
Indicated
 
Measured & Indicated
Property
 
Metric Tonnes
 
Silver Grade
 
Metric Tonnes
 
Silver Grade
 
Metric Tonnes
 
Silver Grade
 
 
(millions)
 
(gram/tonne)
 
(millions)
 
(gram/tonne)
 
(millions)
 
(gram/tonne)
Berg Property (2)
 
53.3
 
4.5
 
452.7
 
3.7
 
506.0
 
3.8
_______________________________________________________________________________


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(1)
The mineral resource estimate for Mt. Milligan Mine was prepared by Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101. The mineral resource estimates were prepared using optimized pit shells at a $4.10/t NSR cut-off value, metal prices of $2.00/lb copper, $800/oz gold and an exchange rate of C$1.00/US$0.85, and incorporate estimated costs for milling, plant services, tailing services and general and administrative charges. The mineral resource estimate is based on the cost and price assumptions included in a NI 43-101 technical report prepared for Terrane entitled "Technical Report—Feasibility Update Mt. Milligan Property—Northern BC" dated October 13, 2009 and filed on SEDAR on October 13, 2011.

(2)
The mineral resource estimate for the Berg property was approved by Robert Clifford, our Director of Mine Engineering who is a Qualified Person under NI 43-101, and is reflected in a NI 43-101 technical report prepared for Terrane entitled "2009 Mineral Resource Estimate on the Berg Copper Molybdenum Silver Property, Tahtsa Range, British Columbia" dated June 26, 2009 and filed on SEDAR on October 13, 2011. The mineral resource estimate for the Berg property was prepared using a 0.30% copper equivalent cut-off, with copper equivalency defined using metal prices of $1.60/lb copper, $10/lb molybdenum, and $10/oz silver, taking into account forecast metallurgical recoveries. Resources are reported to a maximum depth of 450 meters (1,476.38 feet) below surface.

(3)
The mineral resource estimates for TC Mine and Endako Mine were prepared by the TC Mine and Endako Mine staff, respectively, under the supervision of Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101. The mineral resource estimates utilized a cut-off grade of 0.025% Mo and an average long-term molybdenum price of $12.00 per pound.
NON-RESERVES—INFERRED MINERAL RESOURCES
Cautionary note to US investors concerning estimates of inferred mineral resources
This section uses the term "inferred mineral resources." We advise US investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of inferred mineral resources will ever be converted into mineral reserves. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. US investors are cautioned not to assume that part or all of the inferred mineral resources exists, or is economically or legally mineable.
Inferred mineral resources have been estimated in accordance with the definitions of such terms adopted by the CIM and incorporated in NI 43-101. We have filed technical reports regarding the disclosure of mineral resources for TC Mine and Endako Mine, Mt. Milligan, and the Berg property. See the Glossary of Terms below for an explanation of mining terms used in this report.
The following tables summarize estimated non-reserves—inferred mineral resources as of December 31, 2013:
Inferred Mineral Resources—Copper
Property
 
Short Tons
 
Metric Tonnes
 
Copper Grade
 
 
(millions)
 
(millions)
 
(%)
Mt. Milligan (1)
 
23.0
 
20.9
 
0.15
Berg Property (2)
 
159.4
 
144.6
 
0.23
Inferred Mineral Resources—Gold
Property
 
Short Tons
 
Gold Grade
 
Metric Tonnes
 
Gold Grade
 
 
(millions)
 
(oz/ton)
 
(millions)
 
(gram/tonne)
Mt. Milligan (1)
 
23.0
 
0.006
 
20.9
 
0.202
Inferred Mineral Resources—Molybdenum

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Property
 
Short Tons
 
Metric Tonnes
 
Molybdenum
Grade
 
 
(millions)
 
(millions)
 
(%)
TC Mine (3)
 
0.6
 
0.5
 
0.044
Endako Mine (3)
 
4.0
 
3.6
 
0.053
Berg Property (2)
 
159.4
 
144.6
 
0.033
Inferred Mineral Resources—Silver
Property
 
Short Tons
 
Silver Grade
 
Metric Tonnes
 
Silver Grade
 
 
(millions)
 
(oz/ton)
 
(millions)
 
(gram/tonne)
Berg Property (2)
 
159.4
 
0.073
 
144.6
 
2.5
_______________________________________________________________________________

(1)
The inferred mineral resource estimate for Mt. Milligan Mine was prepared by Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101. The inferred mineral resource estimates were prepared using optimized pit shells at a $4.10/t NSR cut-off value, metal prices of $2.00/lb copper, $800/oz gold and an exchange rate of C$1.00/US$0.85, and incorporate estimated costs for milling, plant services, tailing services and general and administrative charges. The inferred mineral resource estimate is based on the cost and price assumptions included in a NI 43-101 technical report prepared for Terrane entitled "Technical Report—Feasibility Update Mt. Milligan Property—Northern BC" dated October 13, 2009 and filed on SEDAR on October 13, 2011.

(2)
The inferred mineral resource estimate for the Berg property was approved by Robert Clifford, our Director of Mine Engineering who is a Qualified Person under NI 43-101, and is reflected in a NI 43-101 technical report prepared for Terrane entitled "2009 Mineral Resource Estimate on the Berg Copper Molybdenum Silver Property, Tahtsa Range, British Columbia" dated June 26, 2009 and filed on SEDAR on October 13, 2011. The inferred mineral resource estimate for the Berg property is reported using a 0.30% copper equivalent cut-off, with copper equivalency defined using metal prices of $1.60/lb copper, $10/lb molybdenum, and $10/oz silver, taking into account forecast metallurgical recoveries. Resources are reported to a maximum depth of 450 meters (1,476.38 feet) below surface.

(3)
The inferred mineral resource estimates for TC Mine and Endako Mine were prepared by the TC Mine and Endako Mine staff, respectively, under the supervision of Robert Clifford, our Director of Mine Engineering, who is a Qualified Person under NI 43-101. The inferred mineral resource estimates utilized a cut-off grade of 0.025% Mo and an average long-term molybdenum price of $12.00 per pound.

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GLOSSARY OF TERMS
SEC Industry Guide 7 Definitions

reserve
 
The term "reserve" refers to that part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination. Reserves must be supported by a feasibility(1) study done to bankable standards that demonstrates the economic extraction. ("Bankable standards" implies that the confidence attached to the costs and achievements developed in the study is sufficient for the project to be eligible for external debt financing.) A reserve includes adjustments to the in-situ tonnes and grade to include diluting materials and allowances for losses that might occur when the material is mined.
proven reserve
 
The term "proven reserve" refers to reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape depth and mineral content of reserves are well-established.
probable reserve
 
The term "probable reserve" refers to reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.
mineralized material (2)
 
The term "mineralized material" refers to material that is not included in the reserve as it does not meet all of the criteria for adequate demonstration for economic or legal extraction.
non-reserves
 
The term "non-reserves" refers to mineralized material that is not included in the reserve as it does not meet all of the criteria for adequate demonstration for economic or legal extraction.
_______________________________________________________________________________

(1)
For SEC Industry Guide 7 purposes, the feasibility study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

(2)
This category is substantially equivalent to the combined categories of measured mineral resource and indicated mineral resource specified in NI 43-101.

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NI 43-101 Definitions
mineral reserve
 
The term "mineral reserve" refers to the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. The study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined.
proven mineral reserve
 
The term "proven mineral reserve" refers to the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.
probable mineral reserve
 
The term "probable mineral reserve" refers to the economically mineable part of an indicated mineral resource, and in some circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.
mineral resource
 
The term "mineral resource" refers to a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material, including base and precious metals, coal, and industrial minerals, in or on the Earth's crust, in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.
measured mineral resource
 
The term "measured mineral resource" refers to that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
indicated mineral resource
 
The term "indicated mineral resource" refers to that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
inferred mineral resource
 
The term "inferred mineral resource" refers to that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Qualified Person (1)
 
The term "Qualified Person" refers to an individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these, has experience relevant to the subject matter of the mineral project and the technical report, and is a member in good standing of a professional association.
_______________________________________________________________________________

(1)
SEC Industry Guide 7 does not require designation of a qualified person.
Additional Definitions
alteration—any change in the mineral composition of a rock brought about by physical or chemical means
assay—a measure of the valuable mineral content
chalcopyrite—common sulfide ore of copper, made of copper and iron sulfide
concentrate—the product of mineral flotation process which separates and concentrates ore minerals from waste material

24
Table of Contents


concentrator—plant and equipment that conducts process of mineral concentration
cut-off grade—when determining economically viable Mineral Reserves, the lowest grade of mineralized material that qualifies as ore, i.e. that can be mined and processed at a profit
diamond drilling—rotary drilling using diamond-set or diamond-impregnated bits, to produce a solid continuous core of rock sample
dissemination—where minerals occur as scattered particles in the rock
fault—a surface or zone of rock fracture along which there has been displacement
feasibility study—a comprehensive study of a mineral deposit in which all geological, engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production.
formation—a distinct layer of sedimentary rock of similar composition
grade—quantity of metal per unit weight of host rock
granodiorite—a group of coarse-grained plutonic rocks intermediate in composition between quartz diorite and quartz monzonite containing quartz, plagioclase, potassium feldspar with biotite and hornblende
host rock—the rock in which a mineral or an ore body may be contained
hydrothermal—the products of the actions of heated water, such as a mineral deposit precipitated from a hot solution
in-situ—in its natural position
life-of-mine—a term commonly used to refer to the likely term of a mining operation and normally determined by dividing the tons of Mineral Reserve by the annual rate of mining and processing
mineral—a naturally occurring inorganic crystalline material having a definite chemical composition
mineralization—a natural accumulation or concentration in rocks or soil of one or more potentially economic minerals, also the process by which minerals are introduced or concentrated in a rock
Mo—molybdenum
molybdenite—a mineral of molybdenum disulfide; common sulphide ore of molybdenum
MoS2—molybdenum disulfide or molybdenite
net smelter return (NSR)—refers to the revenue expected from ore delivered to the smelter, taking into account metallurgical recoveries, concentrate grades, transportation costs and smelter treatment charges, usually measured on a per ton basis
open-pit—surface mining in which the ore is extracted from a pit or quarry, the geometry of the pit may vary with the characteristics of the ore body
ore—mineral bearing rock that can be mined and treated profitably under current or immediately foreseeable economic conditions
ore body—a mostly solid and fairly continuous mass of mineralization estimated to be economically mineable
ore grade—the average weight of the valuable metal or mineral contained in a specific weight of ore i.e. grams per tonne of ore
ounces—refer to troy ounces
outcrop—that part of a geologic formation or structure that appears at the surface of the Earth
oxide—gold bearing ore which results from the oxidation of near surface sulfide ore
preliminary assessment—a study that includes an economic analysis of the potential viability of Mineral Resources taken at an early stage of the project prior to the completion of a preliminary feasibility study

25
Table of Contents


porphyry—a deposit of molybdenum or copper bearing ores associated with intrusive igneous rocks of porphyritic texture
preliminary assessment—a study that includes an economic analysis of the potential viability of Mineral Resources taken at an early stage of the project prior to the completion of a preliminary feasibility study
preliminary feasibility study and pre-feasibility study—each mean a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration in the case of an open-pit, has been established and an effective method of mineral processing has been determined, and includes a financial analysis based on reasonable assumptions of technical, engineering, legal, operating, economic, social and environmental factors and the evaluation of other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the Mineral Resource may be classified as a Mineral Reserve
pyrite—common sulfide of iron
QA/QC—Quality Assurance/Quality Control is the process of controlling and assuring data quality for assays and other exploration and mining data
rock—indurated naturally occurring mineral matter of various compositions
sedimentary rock—rock formed at the Earth's surface from solid particles, whether mineral or organic, which have been moved from their position of origin and re-deposited
stockpile—a rock dump containing ore grade material to be processed at some point in the future
stockwork—a complex system of variably oriented veins
strip—to remove overburden in order to expose ore
sulfide—a mineral including sulfur (S) and iron (Fe) as well as other elements; metallic sulfur-bearing mineral often associated with gold mineralization
tailings—fine ground wet waste material produced from ore after economically recoverable metals or minerals have been extracted
ton—short ton, equal to 2,000 pounds, or 907.2 kilograms
tonne—metric tonne, equal to 1,000 kilograms or 2,204.6 pounds
vein—a thin, sheet-like crosscutting body of hydrothermal mineralization, principally quartz
volcanics—those originally molten rocks, generally fine grained, that have reached or nearly reached the Earth's surface before solidifying
ADDITIONAL INFORMATION
Our primary executive offices are located at 26 West Dry Creek Circle, Suite 810, Littleton, Colorado 80120, our telephone number is (303) 761-8801.
The public can access our website at www.thompsoncreekmetals.com. From our website, you can download and print copies of our annual reports to shareholders, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to any of those reports, as well as other reports relating to us that are filed with or furnished to the SEC or SEDAR. You can also download from our website our corporate governance policies, including our Corporate Governance Guidelines, Board of Directors Committee Charters, and our Code of Conduct and Ethics. The contents of our website are not incorporated into, and should not be considered, a part of this report.
The public may also read and copy materials that we file with the SEC at the SEC's Public Reference Room, which is located at 100 F Street NE, Room 1580, Washington D.C. 20549. You can obtain information on the operation of the Public Reference Room by calling the SEC at (800) SEC-0330. The SEC also maintains a website that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.

ITEM 1A.    RISK FACTORS

26
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Our operations and financial results are subject to various risks and uncertainties, including those described below, that could materially adversely affect our business, financial condition, results of operations, cash flows and the trading price of our common stock. Such risks are not the only ones we face and additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business.
Financial Risks
Extended declines in the prices of copper, gold and/or molybdenum would have a material adverse effect on our earnings and cash flows and could affect our ability to repay our debt. Fluctuations in the prices of copper, gold and/or molybdenum can cause significant volatility in our financial performance and materially and adversely affect the trading prices of our debt and common stock.
Our business is dependent on the prices of copper, gold and molybdenum. The prices of copper, gold and molybdenum are volatile and are affected by numerous factors beyond our control. Factors tending to influence such prices include the following:
•
the rates of global economic growth;
•worldwide supply, including the start-up of new primary and bi-product mines;
•demand for products containing copper, gold and/or molybdenum;
•the availability and cost of substitute materials;
•inventory levels;
•our production costs and the production costs of our competitors;
•expectations with respect to the rate of inflation;
•the relative strength of the US dollar and certain other currencies;
•global or regional political or economic conditions, including interest rates and currency values; and
•
sales by central banks and other holders, speculators and producers in response to any of the above factors.
The prices of copper, gold and molybdenum have fluctuated historically. During the three years ended December 31, 2013, the average spot copper price on the London Metals Exchange ranged from a low of $3.01 to a high of $4.62 per pound, the average London P.M. fixed prices for gold per ounce on the London Bullion Market ranged from a low of $1,195 to a high of $1,895 and the average price for molybdenum quoted in Platts Metals Week ranged from a low of $9.08 to a high of $18.00 per pound.
Any decline in the prices of copper, gold or molybdenum adversely impacts our revenues, net income and cash flows and could affect our ability to repay our debt and meet our debt service and other fixed obligations, and depress the trading prices of our common stock and our publicly traded debt securities. Sustained declines in prices could also:
•
cause us to revise our operating plans, including reducing output at our operations and possibly closing one or more of our mines or other facilities;
•
further reduce revenues through production declines due to cessation of mining of deposits that have become uneconomic;
•reduce funds available for capital expenditures, acquisitions and exploration projects;
•reduce existing reserves due to economic viability; and
•cause us to write down assets.
We may fail to realize the anticipated benefits of Mt. Milligan Mine, which would have a material adverse effect on our business, financial condition and results of operations.
In the third quarter of 2013, we completed the construction of our Mt. Milligan Mine, and commenced the commissioning and start-up phase. While we achieved commercial production at Mt. Milligan Mine (defined as 30 days of 60% design capacity mill throughput) as of February 18, 2014, ramp-up to full design capacity continues. We have experienced various start-up challenges, including in the grinding and flotation circuits. These factors have caused throughput to be lower than anticipated and have caused interruptions and delays in the start-up process, and we may face additional challenges and delays.

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The capital expenditures and time required to develop new mines are considerable, and changes in costs or start-up schedules can affect project economics. The value that we ultimately receive from Mt. Milligan Mine depends on the future prices of copper and gold and our ability to successfully ramp-up and operate the mine. There is a risk that we paid more than the value we will receive from the acquisition, construction and development of Mt. Milligan Mine. In the event that we experience further operational challenges or if the new mine fails to meet our expectations for its operation and/or copper and gold prices decline significantly, we may need to write down Mt. Milligan Mine's assets or make the decision to cease mining operations and production at Mt. Milligan Mine, each or both of which would have a material adverse impact on our business. Our profitability will be substantially impacted by our ability to successfully operate Mt. Milligan Mine at design capacity within our projected time frame and budget.
Our substantial indebtedness could adversely affect our financial condition.
As of December 31, 2013, our total debt was approximately $1,012.8 million, including equipment lease obligations, and we have unused commitments of $9.8 million net funding available under the Caterpillar equipment financing facility. We also have $780.7 million in deferred revenue under our Gold Stream Arrangement. Until the deposits received in the Gold Stream Arrangement have been fully offset against Royal Gold’s purchases of gold under the agreement, the deposits will be secured by our Mt. Milligan Mine assets. After the deposits have been fully offset, Royal Gold will continue to have a security interest in 52.25% of the refined gold produced from Mt. Milligan Mine.
Subject to the limits contained in the indentures that govern our outstanding 2017 Notes, 2018 Notes and 2019 Notes, the amended and restated gold stream agreement with Royal Gold, and our other debt instruments, we may be able to incur additional debt to finance working capital, capital expenditures, investments or acquisitions or for other purposes. If we do so, the risks related to our high level of debt could intensify. Specifically, our high level of debt could have important negative consequences, including:
•
making it difficult for us to satisfy our obligations with respect to our debt and increasing the risk that we default on our debt obligations;
•
limiting our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements;
•
requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, acquisitions and other general corporate purposes;
•
increasing our vulnerability to declines in the prices of our commodities, general adverse economic and industry conditions;
•
limiting our flexibility in planning for and reacting to changes in the industry in which we compete;
•
limiting management's discretion in operating our business;
•placing us at a disadvantage compared to other, less leveraged competitors;
•increasing our cost of borrowing; and
•limiting our ability to pursue certain types of strategic opportunities.
The indentures that govern our outstanding 2017 Notes, 2018 Notes and 2019 Notes and our Amended and Restated Gold Stream Agreement with Royal Gold contain covenants that restrict our current and future operations and limit our flexibility and ability to respond to changes or take certain actions.
The indentures that govern our outstanding 2017 Notes, 2018 Notes and 2019 Notes contain certain restrictive covenants that impose significant operating and financial restrictions on us and, in some circumstances, limit our ability to engage in actions that may be in our long-term best interest, including, among other things, our ability to:
•incur additional debt;
•sell, lease or transfer our assets;
•pay dividends or make other distributions or repurchase or redeem capital stock;
•prepay, redeem or repurchase certain debt;
•make loans or investments;
•enter into agreements restricting our subsidiaries' ability to pay dividends;
•make capital expenditures and investments;
•guarantee debts or other obligations;
•create liens;
•enter into transactions with our affiliates; and
•enter into certain merger, consolidation or other reorganization transactions.
In addition, our amended and restated gold stream agreement with Royal Gold contains restrictions on our ability to incur additional secured debt.

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These restrictions could limit our ability to grow in accordance with our strategy or secure the needed working capital to withstand future downturns in our business or the economy in general, or otherwise take advantage of business opportunities that may arise, any of which could place us at a disadvantage relative to our competitors that may have less debt and are not subject to such restrictions.
A default under any of our indebtedness arrangements could trigger cross defaults to our other agreements, which could have a material adverse effect on our financial condition.
A failure to satisfy any of our debt obligations could be exacerbated by cross default provisions. For example, a default under the Caterpillar equipment financing facility will trigger cross defaults to our amended and restated gold stream agreement with Royal Gold, and vice versa, and could also trigger cross defaults to the indentures governing our outstanding notes and other material agreements. In the event of a default under the Caterpillar equipment financing facility, Caterpillar could: (1) terminate the lease by us of equipment purchased by the lender and leased to us pursuant to the facility; (2) terminate the lender's obligation to purchase additional equipment and lease such equipment to us pursuant to the terms of the facility; (3) accelerate the payment of all lease payments unpaid under the facility, together with default interest; (4) accelerate the payment of the balance of the purchase price for equipment, which would have been due and payable from the date of termination; and (5) foreclose on the equipment purchased and leased under the facility and apply the proceeds from the sale of such equipment to any shortfall in the payment by us of amounts due. In the event of default under our amended and restated gold stream agreement with Royal Gold, Royal Gold could require us to repay the amounts Royal Gold has invested in Mt. Milligan Mine, as adjusted and reflected in the deposit record maintained in accordance with the agreement, which amounts totaled $779.8 million as of December 31, 2013. In the event of a default under the indentures governing the 2017 Notes, 2018 Notes and 2019 Notes, the trustee or holders of at least 25% in principal of the outstanding 2017 Notes, 2018 Notes and 2019 Notes, as applicable, may declare the principal, premium, if any, and accrued and unpaid interest on the notes to be immediately due and payable. If we were to default under any of these arrangements, we may not have sufficient assets to repay such indebtedness upon a default or have access to sufficient alternative sources of funds. If we are unable to repay the indebtedness, the lenders could foreclose against the assets securing their borrowings and we could be forced into bankruptcy or liquidation.
We may enter into provisionally-priced sales contracts, which could have a negative impact on our revenues if prices decline.
From time to time, we enter into provisionally-priced sales contracts, whereby the contracts settle at prices to be determined at a future date. The future pricing mechanism of these agreements constitutes an embedded derivative, which is bifurcated and separately marked to estimated fair value at the end of each period. Changes to the fair value of embedded derivatives related to sales agreements are included in sales revenue in the determination of net income. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to sales, respectively, is recorded each reporting period until the date of final pricing. Accordingly, in times of falling commodities prices, our revenues are negatively impacted by lower prices received for contracts priced at current market rates and also from a decrease related to the final pricing of provisionally-priced sales pursuant to contracts entered into in prior years; in times of rising commodities prices, the opposite occurs.
A lowering or withdrawal of the ratings assigned to our debt securities by rating agencies may increase our future borrowing costs and reduce our access to capital.
Our debt currently has a non-investment grade rating, and any rating assigned could be lowered or withdrawn entirely by a rating agency if, in that rating agency's judgment, future circumstances relating to the basis of the rating, such as adverse changes, so warrant. Consequently, real or anticipated changes in our credit ratings will generally affect the market value of our outstanding debt securities. Any future lowering of our ratings likely would make it more difficult or more expensive for us to obtain additional debt financing and could lead our suppliers and other third parties with whom we do business to require us to provide financial assurance in the normal course of our operations.
Our operations are subject to currency fluctuations, which could adversely affect our results of operations and financial condition.
Exchange rate fluctuations may affect the costs that we incur in our operations. Our costs for Endako Mine and Mt. Milligan Mine are incurred principally in Canadian dollars. However, our future revenue is tied to market prices for molybdenum, copper, gold and silver, which are denominated in US dollars. The appreciation of the Canadian dollar against the US dollar can increase the cost of our production and capital expenditures in US dollars, and our results of operations and financial condition could be materially adversely affected. Although we have in the past used, and may in the future use, hedging strategies to limit our exposure to currency fluctuations, there can be no assurance that such hedging strategies will be successful or that they will mitigate the risk of such fluctuations.

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Mine closure and remediation costs for environmental liabilities may exceed the provisions we have made and our inability to provide reclamation bonding or maintain insurance could adversely affect our operating results and financial condition.
We are required by US federal and state laws and Canadian federal and provincial laws to provide financial assurance sufficient to allow a third party to implement approved closure and reclamation plans if we are unable to do so. These laws are complex and vary from jurisdiction to jurisdiction. The laws govern the determination of the scope and cost of the closure and reclamation obligations and the amount and forms of financial assurance. The amount and nature of the financial assurances are dependent upon a number of factors, including our financial condition and reclamation cost estimates.
As of December 31, 2013, we had provided the appropriate regulatory authorities in the United States and Canada with approximately $82 million in reclamation financial assurance for our share of mine closure obligations in the various jurisdictions in which we operate. As our operations expand, our reclamation obligations and the financial assurances that we are required to provide may increase accordingly. For example, we have posted an additional $12 million (for a total of $30 million) for our reclamation security at Mt. Milligan Mine as of December 31, 2013. Changes to these amounts, as well as the nature of the security to be provided, could significantly increase our costs, making the maintenance and development of existing and new mines less economically feasible. To the extent that the value of the security provided to the regulatory authorities is or becomes insufficient to cover the amount of financial assurance we are required to post, we would be required to replace or supplement the existing security with more expensive forms of security, which might include cash deposits, which would reduce our cash available for operations and financing activities.
We have initiated discussions with relevant US federal agencies concerning funding of a trust agreement to cover long-term water treatment at TC Mine, although we are not currently under any requirement to do so. The amount of funding required is subject to numerous variables, including an appropriate discount rate, and cannot be determined at this time.
There can be no assurance that we will be able to maintain or add to our current level of financial assurance. Failure to provide regulatory authorities with the required financial assurances could potentially result in the closure of one or more of our operations, which could result in a material adverse effect on our operating results and financial condition.
We are required, from time to time, to post financial assurances, and there can be no assurance that we will continue to be able to obtain financial assurances on acceptable terms.
In addition to our reclamation bonding obligations, we are from time to time required to post other financial assurance in the normal course of conducting our daily activities. This financial assurance can take several forms, including, but not limited to, letters of credit, performance bonds, deposits into escrow accounts for the benefit of the counterparty, trust funds or other funding mechanisms for long-term, post-reclamation obligations or the posting of cash collateral directly with the counterparty. In each case, the form of financial assurance to be provided is dictated by several factors, including expected length of time the financial assurance obligation is expected to remain outstanding, the amount of the obligation, the cost to us of providing the various forms of financial assurance and the creditworthiness of the counterparty. Our ability to obtain certain forms of financial assurance going forward will be impacted by our future financial performance, changes to our credit rating and other factors that may be beyond our control. There can be no assurance that we will be able to obtain certain forms of financial assurance going forward or that we will be able to post cash collateral in lieu of being able to secure one of these other forms of financial assurance.
We will rely on a few key customers for our copper-gold concentrate from Mt. Milligan Mine, and the loss of any one key customer could reduce our revenues.
We have entered into three concentrate sales agreements for the sale of copper-gold-silver concentrate produced at Mt. Milligan Mine. Pursuant to these agreements, we agreed to sell an aggregate of approximately 85% of the copper-gold-silver concentrate produced at Mt. Milligan Mine during 2013 and 2014 and an aggregate of approximately 120,000 dry metric tons in each of the two calendar years thereafter. A breach of the applicable sales agreement by us or the applicable customer, a significant dispute with one of these customers, a force majeure event affecting the parties' respective performances under the agreement, early termination of the agreement, or any other event significantly negatively impacting the contractual relationship with one of these customers could harm our financial condition. If, in such an event, we are unable to sell the affected concentrate volume to another customer, or we sell the affected concentrate to another customer on terms less advantageous terms to us, our revenues could be negatively impacted.
Our commodity hedging activities may reduce the realized prices we receive for our copper and gold, and involve market risk for the fair value of the derivatives, credit risk that our counterparties may be unable to satisfy their obligations to us, and financial risk due to fluctuations in the fair value of the derivatives.
In order to manage our cash flow exposure to copper and gold price volatility in selling production from Mt. Milligan Mine, we may enter into commodity derivatives for a portion or all of our expected production. Additionally, we receive cash provisional

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payments in selling production for Mt. Milligan Mine, thus requiring that we purchase gold in order to satisfy our obligation to pay Royal Gold in gold. We may enter into commodity derivatives in order to manage our gold price risk that arises when physical purchase and concentrate sales pricing periods do no match. We currently have in place unsecured hedging lines with various banks and trading companies in order to manage these exposures.
Commodity derivatives may limit the prices we actually realize and therefore could reduce our copper and gold revenues in the future. Our commodity hedging activities could impact our earnings in various ways, including recognition of certain mark-to-market gains and losses on derivative instruments. The fair value of our derivative instruments could fluctuate significantly between periods.
Our commodity derivatives may expose us to significant market risk, which is the risk that the fair value of a commodity derivative might be adversely affected by a change in underlying commodity prices or a change in our expected production, which may result in a significant financial loss on the derivative. We mitigate the potential market risk by establishing trading agreements with counterparties under which we are not required to post any collateral or make any margin calls on our derivatives. Our counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative. We also mitigate the risk of having commodity derivative transactions in excess of our production by entering into derivatives for only a portion of our expected production.
Our commodity derivatives also expose us to credit risk that counterparties may be unable to satisfy their obligations to us. We mitigate the potential credit risk by entering into derivatives with a number of counterparties, limiting the amount of exposure to any one counterparty, and monitoring the financial condition of the counterparties. If any of our counterparties were to default on its obligations to us under the derivative transaction or seek bankruptcy protection, it could result in a larger percentage of our future production being subject to commodity price changes which may have a significant adverse effect on our cash flow, our earnings and our financial condition. The risk of counterparty default is heightened in a poor economic environment.
Operational Risks
Our business is subject to production and operational risks that could adversely affect our business and our insurance may not cover these risks and hazards adequately or at all.
Mining and metals processing involve significant production and operational risks outside of our control, including the following:
•unanticipated ground and water conditions;
•adverse claims to water rights and shortages of water to which we have rights;
•adjacent or adverse land or mineral ownership that results in constraints on current or future mine operations;
•geological problems, including earthquakes and other natural disasters;
•metallurgical and other processing problems;
•unusual or unexpected rock formations;
•ground or slope failures;
•structural cave-ins, wall failures or rock-slides;
•flooding or fires;
•equipment failures;
•
periodic interruptions due to inclement or hazardous weather conditions or operating conditions and other force majeure events;
•lower than expected ore grades or recovery rates;
•accidents;
•delays in the receipt of or failure to receive necessary government permits;
•the results of litigation, including appeals of agency decisions;
•delays in transportation;
•interruption of energy supply;
•labor disputes;
•inability to obtain satisfactory insurance coverage;
•the availability of drilling and related equipment in the area where mining operations will be conducted; and
•the failure of equipment or processes to operate in accordance with specifications or expectations.
These risks could result in damage to, or destruction of, our mines, mills and roasting facilities, resulting in partial or complete shutdowns, personal injury or death, environmental or other damage to our properties or the properties of others, delays in mining, reduced production, monetary losses and potential legal liability. Milling operations are subject to hazards,

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such as equipment failure or failure of retaining dams around tailings disposal areas that may result in personal injury or death, environmental pollution and consequential liabilities.
In addition, we rely on a few key vendors for the transportation of concentrate from Mt. Milligan Mine to our customers. Concentrate is transported from the mine site to Mackenzie, British Columbia, Canada by truck pursuant to a contract with a single trucking company, then to Vancouver by rail pursuant to a contract with a single railway operator, stored at the Port of Vancouver pursuant to a contract with the Port of Vancouver terminal operator, and shipped to our customers pursuant to a contract with a single shipping provider. A breach of the applicable contract by any of these vendors, a significant dispute with any of these vendors, a force majeure event or other operational or financial issues affecting one or more of these vendors, or any other event significantly negatively impacting the contractual relationship with any one of these vendors would adversely affect our ability to satisfy our obligations to our customers, which could have a material impact on our financial condition and results of operations.
Our insurance will not cover all the potential risks associated with our operations. In addition, although certain risks are insurable, we may be unable to maintain insurance to cover these risks at economically feasible premiums. Moreover, insurance against risks such as environmental pollution or other hazards as a result of exploration and production is not generally available to us or to other companies in the mining industry on acceptable terms. We might also become subject to liability for pollution or other hazards that may not be insured against or that we may elect not to insure against because of premium costs or other reasons. Losses from these events may cause us to incur significant costs that could have a material adverse effect upon our business. Furthermore, should we be unable to fund fully the cost of remedying an environmental problem, we might be required to suspend operations or enter into interim compliance measures pending completion of the required remedy.
Increased operating costs could affect our profitability.
Costs at any particular mining location are subject to variation due to a number of factors, such as changing ore grade, changing metallurgy and revisions to mine plans in response to the physical shape and location of the ore body. In addition, costs at our mines and at our Langeloth Facility are affected by the price of input commodities, such as fuel, electricity, labor, chemical reagents, grinding media, mill liners, explosives, steel and concrete. Commodity costs are, at times, subject to volatile price movements, including increases that could make production at certain operations less profitable and changes in laws and regulations affecting their price, use and transport. Reported costs may also be affected by changes in accounting standards. A material increase in costs at any significant location could have a significant effect on our profitability and operating cash flow.
Our mining production depends on the availability of sufficient water supplies.
Our operations require significant quantities of water for mining, ore processing and related support facilities. Continuous production at our mines depends on our ability to maintain our water rights and claims. Although each operation has sufficient water rights and claims to cover current operational demands, we cannot predict the potential outcome of future legal proceedings on our water rights, claims and uses. The failure to obtain needed water permits, the loss of some or all water rights for any of our mines, in whole or in part, or shortages of water to which we have rights due to weather, equipment issues or other factors could require us to curtail or close mining production and could prevent us from pursuing expansion opportunities.
The temporary shutdown of any of our operations could expose us to significant costs and adversely affect our access to skilled labor.
From time to time, we may have to temporarily shut down one or more of our operating sites if they are not commercially viable. There are a number of factors that may cause our operations to not be commercially viable, many of which are beyond our control. These factors include adverse changes in interest rates or currency exchange rates, decreases in the price of copper, gold or molybdenum or the market rates for treatment and refining charges, increases in concentrate transportation costs and increases in labor costs. In addition, periodically we must temporarily shut down equipment at our mines or other facilities for routine maintenance. During such temporary shutdowns, we will have to continue to expend capital to maintain the site or facility and equipment. We may also incur significant labor costs as a result of a temporary shutdown if we are required to give employees notice prior to any layoff or to pay severance for any extended layoff. Furthermore, temporary shutdowns may adversely affect our future access to skilled labor, as employees who are laid off may seek employment elsewhere.
In addition, if our operations are shut down for an extended period of time, we may be required to engage in environmental remediation of the plant sites or accelerated reclamation of our mines, which would require us to incur additional costs. The costs of ramping up production at one of our operations following a temporary shutdown could be significant. Given the costs involved in a temporary shutdown of our operations, we may instead choose to continue to operate those operations at a loss. Such a decision could have a material adverse effect on our results of operations and financial condition.
We are subject to substantial government regulation. Changes to regulation or more stringent implementation could have a material adverse effect on our results of operations and financial condition.

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Our mining, processing, development and mineral exploration activities are subject to various laws governing prospecting, development, production, taxes, labor standards and occupational health, mine safety, toxic substances and other matters. Mining and exploration activities are also subject to various laws and regulations relating to the protection of the environment. No assurance can be given that we will remain in compliance with applicable regulations or that new rules and regulations will not be enacted or that existing rules and regulations will not be applied in a manner that could limit or curtail production or development of our properties. Amendments to current laws and regulations governing our operations and activities or more stringent implementation thereof could have a material adverse effect on our business, financial condition and results of operations.
Over the course of the last several years, significant new corporate governance and disclosure regulations and requirements have been adopted by US federal and state and Canadian federal, state and provincial governments, as well as the stock exchanges on which our common stock is listed. We are required to expend significant resources to monitor and implement these new rules and regulations. These additional compliance costs and related diversion of the attention of management and key personnel could have a material adverse effect on our business, financial condition and results of operations.
Estimates of mineral reserves and projected cash flows may prove to be inaccurate, which could negatively impact our results of operations and financial condition.
There are numerous uncertainties inherent in estimating mineral reserves and the future cash flows that might be derived from their production. Accordingly, the figures for mineral reserves and future cash flows contained in this Form 10-K are estimates only. In respect of mineral reserve estimates, no assurance can be given that the anticipated tonnages and grades will be achieved, that the indicated level of recovery will be realized or that mineral reserves can be mined or processed profitably. The ore grade actually recovered may differ from the estimated grades of the mineral reserves and mineral resources.
In addition, actual future cash flows may differ materially from estimates. Estimates of mineral reserves, and future cash flows to be derived from the production of such mineral reserves, necessarily depend upon a number of variable factors and assumptions, including, among others, geological and mining conditions that may not be fully identified by available exploration data or that may differ from experience in current operations; historical production from the area compared with production from other producing areas; the assumed effects of regulation by governmental agencies and assumptions concerning metal prices; exchange rates; interest rates; inflation; operating costs; development and maintenance costs; reclamation and post-reclamation costs; and the availability and cost of labor, equipment, raw materials and other services required to mine and refine the ore. Market price fluctuations of copper, gold and molybdenum, as well as increased production costs or reduced recovery rates, may render mineral reserves containing relatively lower grades of mineralization uneconomical to recover and may ultimately result in a restatement of mineral resources. In addition, there can be no assurance that mineral recoveries in small scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production.
For these reasons, estimates of our mineral reserves contained in this Form 10-K, including classifications thereof based on probability of recovery, and any estimates of future cash flows expected from the production of those mineral reserves, prepared by different engineers or by the same engineers at different times may vary substantially. The actual volume and grade of mineral reserves mined and processed, and the actual cash flows derived from that production, may not be as currently anticipated in such estimates. If our actual mineral reserves or cash flows are less than our estimates, our results of operations and financial condition may be materially impaired.
Future growth depends on our ability to bring new mines into production and to expand mineral reserves at existing mines.
Our ability to replenish our reserves is important to our long-term viability. Depleted reserves can be replaced in several ways, including by expanding known ore bodies, locating new deposits or acquiring new reserves from third parties. Exploration projects involve many risks, require substantial expenditures and may not result in the discovery of sufficient additional mineral deposits that can be mined profitably. Once a site with mineralization is discovered, it may take several years from the initial phases of drilling until production is possible, if ever, during which time the economic feasibility of production may change. As a result, there is no assurance that current or future exploration programs, such as the Berg property, and additional drilling at our existing operating mines, will be successful.
We intend to grow our business by acquiring quality mining assets. However, our capital available for new exploration projects and acquisitions is constrained due in large part to our substantial indebtedness incurred in connection with the development of Mt. Milligan Mine and declines in copper, gold and molybdenum prices. We also expect to lose revenue from TC Mine when it is placed on care and maintenance, which is expected to be in the fourth quarter of 2014. In addition, there can be no assurance that suitable acquisition opportunities will be identified or, if identified, that acquisitions will be consummated on favorable terms or at all. Our ability to identify, consummate and to integrate effectively any future acquisitions on terms that are favorable to us may be limited by the number of attractive acquisition targets, internal demands on our resources,

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competition from other mining companies and, to the extent necessary, our ability to obtain financing on satisfactory terms, or at all. In addition, we compete for attractive acquisition targets with other potential buyers that have more financial and other resources than us. There is a risk that depletion of reserves will not be offset by discoveries or acquisitions. As a result, we cannot provide assurance that our exploration, development or acquisition efforts will result in any new commercial mining operations or yield new mineral reserves to replace or expand current mineral reserves. If we are not able to replace depleted reserves, it could have a material adverse effect on our business, prospects, results of operations and financial position.
Some of our properties are located near First Nations who may oppose the development of these properties.
Endako Mine, Mt. Milligan Mine, the Berg property and certain of our other properties are located near First Nations, and the exploration and development of these properties may be subject to claims and opposition by First Nations. Such opposition could negatively impact us in terms of public perception, diversion of management time and resources, legal and other advisory expenses, potential blockades or other interference by third parties in our operations, or court-ordered relief impacting our operations. In addition, we may be required to, or may voluntarily, enter into certain agreements with such First Nations in order to facilitate development of our properties, which could reduce the expected earnings or income from any future production. In particular, in May 2010, the Stellat'en First Nation filed a petition in the Supreme Court of British Columbia against the British Columbia Minister of Energy, Mines and Petroleum Resources and us alleging that Endako Mine and the now-completed mill expansion project at Endako Mine represent infringements of the aboriginal title of the petitioners and impacts to their aboriginal rights, and that the government breached its duty by failing to consult with the Stellat'en First Nation in relation to the impact that Endako Mine and the mill expansion may have on such petitioners and their aboriginal title. In August 2011, the Supreme Court of British Columbia dismissed the petitioners' claims in full, which ruling was appealed to the Court of Appeal of British Columbia by the Stellat'en. The Stellat'en's appeal was dismissed by the Court of Appeal in September 2013. In January 2014, the Stellat’en First Nation applied for appeal with the Supreme Court of Canada; we have asked the court to deny the appeal request. There can be no assurance that these matters will be resolved in our favor. If the Stellat'en appeal is successful, permits and amendments to permits may be delayed or declared invalid, which may have a material adverse effect on the future operating plans for Endako Mine.
Shortages of critical parts, equipment and skilled labor may adversely affect our operations and development projects.
The mining industry has been impacted, from time to time, by increased demand for critical resources such as input commodities, drilling equipment, milling equipment, tires and skilled labor. These shortages have, at times, impacted the efficiency of our operations and resulted in cost increases and delays related to construction of the new mill at Endako Mine and the construction of Mt. Milligan Mine. Such cost increases and delays affect operating costs, capital expenditures and production and construction schedules.
We are required to obtain government permits in order to conduct operations.
Government approvals and permits are currently required in connection with all of our operations, and further approvals and permits may be required in the future. We must obtain and maintain a variety of licenses and permits, including without limitation air quality, water quality, water rights, dam safety, emergency preparedness, hazardous materials, waste rock management, solid waste and tailings operations. The duration and success of our efforts to obtain permits are contingent upon many variables outside of our control. Obtaining governmental permits may increase costs and cause delays depending on the nature of the activity to be permitted and the applicable requirements implemented by the permitting authority. There can be no assurance that all necessary permits will be obtained or timely obtained and, if obtained, that the costs involved will not exceed our estimates or that we will be able to maintain such permits. To the extent such approvals are required and not obtained or maintained, our operations may be curtailed, or we may be prohibited from proceeding with planned exploration, development or operation of our mineral properties.
Our Langeloth Facility is currently operating with a National Pollutants Discharge Elimination System ("NPDES") permit and Title V air quality permit, the terms of which have expired. However, the Langeloth Facility is authorized to continue to operate under its existing permits until renewed permits are issued. In March 2011, the Pennsylvania Department of Environmental Protection ("PaDEP") submitted to us a draft of a new air quality permit for the Langeloth Facility. We requested revisions to such draft permit, which are currently under review by PaDEP. A new air quality or NPDES permit may contain more onerous requirements with which we must comply, and we could be required to install costly new pollution control equipment or to curtail or cease our operations, and our business may be adversely affected. Violations of the existing, or new, air quality or NPDES permit conditions at the Langeloth Facility could result in a range of criminal and civil penalties under the federal Clean Water Act and Clean Air Act or the Pennsylvania Clean Streams Law or Air Pollution Control Act.
TC Mine is also currently operating with an expired NPDES permit. TC Mine is authorized by federal regulation to continue to operate under its existing permit until the renewed permit is issued. A renewed NPDES permit may contain more onerous requirements with which we must comply, and we could be required to install costly new pollution control equipment

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or to curtail or cease our operations, and our business may be adversely affected. Violations of the existing, or new, NPDES permit conditions at TC Mine could result in a range of criminal and civil penalties under the federal Clean Water Act.
Our operations plan for Mt. Milligan Mine contemplates that employees will have the option to live in an operations residence located on the minesite, and that copper-gold concentrate from the mill will be transported to the District of Mackenzie (as opposed to Fort St. James) to be loaded onto railcars for transport to the Port of Vancouver. To construct and operate an operations residence and to load out concentrate in Mackenzie, we applied for and obtained an amendment to our Environmental Assessment Certificate for Mt. Milligan Mine. Any failure to comply with the amendment as issued may have a material adverse effect on our business.
Obtaining and maintaining the various permits for our mine development operations and exploration projects, including the Berg property, will be complex, time-consuming and expensive. Changes in a mine's design, production rates, quality of material mined and many other matters often require submission of the proposed changes for agency approval prior to implementation, and these may not be obtained. In addition, changes in operating conditions beyond our control, changes in agency policy and federal and state laws, litigation initiated by First Nations and/or other parties or community opposition could further affect the successful permitting of operations.
Title to some of our mineral properties may be challenged or defective. Any impairment or defect in title could have a negative impact on our results of operations and financial condition.
The acquisition of title to mineral properties is a very detailed and time-consuming process. There is no guarantee that title to any of our properties will not be challenged or impaired. Third parties may have valid claims underlying portions of our interests, including prior unregistered liens; agreements; transfers or claims, including aboriginal land claims; and title may be affected by, among other things, undetected defects. As a result, we may be constrained in our ability to operate our properties or unable to enforce our rights with respect to our properties. An impairment to, or defect in, title to our properties could have a material adverse effect on our business, financial condition or results of operations.
Major network failures could have an adverse effect on our business.
Major equipment failures, natural disasters including severe weather, terrorist acts, acts of war, cyber attacks or other breaches of network systems or security that affect computer systems within our network could disrupt our business functions, including our production activities. Our mines and mills are automated and networked such that a cyber incident involving our information systems and related infrastructure could negatively impact our operations. A corruption of our financial or operational data or an operational disruption of our production infrastructure could, among other potential impacts, result in: (i) loss of production or accidental discharge; (ii) expensive remediation efforts; (iii) distraction of management; (iv) damage to our reputation or our relationship with customers; or (v) in events of noncompliance, which events could lead to regulatory fines or penalties. Any of the foregoing could have a material adverse effect on our business, results of operations and financial condition.
Environmental Risks
We must comply with comprehensive environmental statutes, regulations and other governmental controls, and we face significant environmental risks.
All phases of our operations are subject to environmental regulation. In Canada and the United States, environmental laws provide for, among other things, restrictions and prohibitions on spills, releases, emissions and discharges of various substances produced in association with, or resulting from, our operations. These laws also require that facility sites and mines be operated, maintained and reclaimed to the satisfaction of applicable regulatory authorities, including long-term obligations. Compliance with such laws, including without limitation, detailed monitoring and reporting requirements, can require significant expenditures. An exceedance of a permit limitation or failure to comply with a permit requirement may result in the imposition of fines and penalties, some of which may be material. Companies engaged in the exploration, development and operation of mineral properties often experience increased costs and delays as a result of the need to comply with applicable laws, regulations and permits.
For example, a decision to mine Phase 8 (the next phase of production) at TC Mine, would entail expansion of some facilities, with additional permitted surface disturbance on approximately 300 acres of US Bureau of Land Management ("BLM") administered land, 185 acres of National Forest System land and approximately 85 acres of private land owned by us. As a result, the mining of Phase 8 is subject to environmental analysis and preparation of an environmental impact statement ("EIS") pursuant to the federal National Environmental Policy Act ("NEPA"). The EIS would also cover a proposed land exchange in which we would receive approximately 5,000 acres of BLM land in exchange for 900 acres of private lands owned by us. The BLM is the lead agency for preparation of the EIS and other federal and state agencies are cooperating agencies. If and when completed, the EIS would be the basis for Records of Decision (RODs) by both the BLM and the United States

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Forest Service to approve our proposed Modified Mine Plan of Operations, by the BLM to approve the proposed land exchange (including a related amendment of the Resource Management Plan for the BLM's Challis Resource Area) and by the US Army Corps of Engineers to approve issuance of a permit under section 404 of the Clean Water Act. There is no assurance that the EIS will be completed, or that the RODs will be issued, or that these documents will be completed or issued on terms and conditions acceptable to us. The agencies' preferred alternatives in the EIS may include terms and conditions that impose regulatory or reclamation requirements that will materially increase our costs during operations and closure of TC Mine. Moreover, litigation may be filed challenging the NEPA process for the mine expansion or the land exchange and the result thereof, which could materially increase our costs, or prevent or delay our ability to implement the expansion or the land exchange.
Environmental regulation is evolving in a manner that may require stricter standards and enforcement, increased fines and penalties for noncompliance, more stringent environmental assessments of proposed projects, and a heightened degree of training and responsibility for companies and their officers, directors and employees. Existing or future environmental regulation could have a material adverse effect on our business, financial condition and results of operations. We own or have owned, manage or have been in care or control of properties that may result in a requirement to environmentally remediate such properties that could involve material costs. In addition, environmental conditions or hazards may exist on the properties in which we hold interests that are unknown to us at present or that have been caused by previous or existing owners or operators of the properties. We may also acquire properties with environmental risks, and the indemnification proceeds we receive from the entity we acquire such properties from, if any, may not be adequate to pay all the fines, penalties and costs (including costs of remediation or removal and related response costs) incurred at or related to such properties.
Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions, including compliance and other orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, operation or administration costs or other remedial actions. Parties engaged in mining operations, including us, may be required to compensate those suffering loss or damage to person or property by reason of the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations. Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation or enforcement thereof, could have a material adverse impact on us and cause increases in exploration expenses, remedial and reclamation obligations, capital expenditures or production costs, reduction in levels of production at producing properties, or abandonment of or delays in development of new mining properties.
Regulation of greenhouse gas emissions effects and climate change issues may adversely affect our operations and markets.
Global climate change continues to attract considerable public, scientific and regulatory attention, and greenhouse gas emission regulation is becoming more commonplace and stringent. As energy, including energy produced from the combustion of carbon-based fuels, is a significant input to our mining and processing operations, we must also comply with emerging climate change regulatory requirements, including programs to reduce greenhouse gas emissions. Our principal energy sources are electricity, purchased petroleum products and natural gas. In addition, our processing facilities and mobile mining equipment emit carbon dioxide.
On July 1, 2008, the Province of British Columbia introduced a carbon tax on the purchase or use of fossil fuels within the province. The current carbon tax rate is $30 per tonne of carbon dioxide equivalent emissions. British Columbia has determined to maintain the carbon tax, but not to increase the rate. Endako Mine and Mt. Milligan Mine are located in British Columbia, and the carbon tax may have a material impact on our energy and compliance costs.
The US federal and state governments may also enact an emission trading or similar program for greenhouse gas emissions, which could significantly increase our energy and regulatory compliance costs. For example, the US federal government has considered legislation to reduce greenhouse gas emissions through a cap-and-trade system of allowances and credits, among other provisions. In addition, the EPA has developed final rules requiring certain emitters of greenhouse gases to collect and report data with respect to their greenhouse gas emissions.
We are in the process of evaluating the potential impacts on our operations of these new and potential regulations. Either a carbon tax or a cap-and-trade program will likely result in increased future energy costs. The regulations will also likely increase our compliance costs. For example, we may be required to install new equipment to reduce emissions from our processing facilities in order to comply with new regulatory standards or to mitigate the financial impact of a new climate change program. We also may be subject to additional and extensive monitoring and reporting requirements. It is uncertain at this time how provincial and regional initiatives will interact with any federal climate change regulations.
The potential physical impacts of climate change on our operations are highly uncertain and may be particular to the unique geographic circumstances associated with each of our facilities. These may include changes in weather and rainfall

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patterns, water shortages, changing storm patterns and intensities and changing temperatures. These physical impacts could require us to curtail or close mining production and could prevent us from pursuing expansion opportunities. These effects may adversely impact the cost, production and financial performance of our operations.
We must remove and reduce impurities and toxic substances naturally occurring in copper, gold and molybdenum and comply with applicable law relating thereto, which could result in remedial action and other costs.
Mineral ores and mineral products, including copper, gold and molybdenum ore and products, contain naturally occurring impurities and toxic substances. Although we have implemented procedures that are designed to identify, isolate and safely remove or reduce such impurities and substances, such procedures require strict adherence and no assurance can be given that employees, contractors or others will not be exposed to or be affected by such impurities and toxic substances, which may subject us to liability. Standard operating procedures may not identify, isolate and safely remove or reduce such substances. Even with careful monitoring and effective control, there is still a risk that the presence of impurities or toxic substances in our products may result in such products being rejected by our customers, penalties being imposed due to such impurities or the products being barred from certain markets. Such incidents could require remedial action and could result in curtailment of operations. Legislation requiring manufacturers, importers and downstream users of chemical substances, including metals and minerals, to establish that the substances can be handled and used without negatively affecting health or the environment may impact our operations and markets. These potential compliance costs, litigation expenses, regulatory delays, remediation expenses and operational costs could negatively affect our financial results.
Changes to the labeling of certain of our products could have a material adverse effect on our results of operations and financial condition.
In December 2006, the European Union ("EU") member states adopted new chemical management legislation known as Registration, Evaluation, and Authorization of Chemicals ("REACH"). REACH applies to all chemical substances manufactured or imported into the EU in quantities of one metric ton or more annually and requires the registration of over 30,000 chemical substances with the European Chemicals Agency. Such registration entails the filing of extensive data on the potential risks to human health and the environment of such chemical substances. As a result of such registration, we are required to label our products imported into the EU in accordance with the product classifications determined under REACH and in accordance with the EU Regulation on Classification, Labeling and Packaging.
Pursuant to REACH, two of our products, pure molybdenum trioxide and tech oxide, have been classified as potential carcinogens (EU CLP/GHS Category 2, suspected human carcinogen, which is REACH's lowest carcinogen category). Under REACH, we utilize material safety data sheets and labeling for such products reflecting this classification. While REACH applies only to the EU, we have adopted a uniform system of labeling and use the REACH-compliant material safety data sheets and product labels worldwide.
Due to the product labeling requirements under REACH, our employees and/or our customers could raise claims against us regarding the safety of our products and the potentially carcinogenic effects they may have. There can also be no assurance that, in the wake of the new REACH classification, government regulators in the jurisdictions in which we do business will not impose more restrictive regulations on us with respect to the manufacture, sale and/or handling of our products. Any such claims or new regulations could have a material adverse effect on our operations and financial condition.
Other Risks
We own certain assets through joint ventures, and any disagreement or failure of partners to meet obligations could have a material adverse effect on our results of operations and financial condition.
Endako Mine is operated as a joint venture between our subsidiary, TCML, which holds a 75% interest, and Sojitz, which holds the remaining 25% interest. As a result, our interest in Endako Mine is subject to the risks normally associated with the conduct of joint ventures. While we are the operator of Endako Mine, Sojitz has certain consent and veto rights pursuant to the agreement governing the joint venture. Any disagreement between us and Sojitz or Sojitz's failure to meet its obligations to the joint venture could have a material adverse impact on our profitability or the viability of our interests held through joint ventures, which could have a material adverse impact on our future cash flows, earnings, results of operations and financial condition.
Intense competition could reduce our market share or harm our financial performance.
The mining industry is intensely competitive, and we compete with many companies that have more financial and technical resources than we do. Our competitive position is based on the quality and grade of our mineral reserves, our ability to manage our costs compared to other producers throughout the world, our ability to maintain our financial integrity through the lows of the metal price cycles and our ability to manage our customer relationships. Our costs are governed to a large extent by

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the location, grade and nature of our mineral reserves; our input costs including energy, labor and equipment; and our operating and management skills. The metals markets are cyclical, and our ability to maintain our competitive position over the long term is based on our ability to manage our costs, acquire and develop quality deposits and hire and retain a skilled workforce. We intend to continue to grow our business through our exploration program and through future acquisitions; however, in the near term our substantial indebtedness will limit our ability to significantly grow our business. Our competitors may have an advantageous market position and have greater financial and other resources and may, therefore, be able to better withstand poor and volatile market conditions, obtain financing on better terms and attract better or more qualified employees, any of which may have an adverse impact on our business, financial condition and results of operations.
We are dependent upon key management personnel and executives.
We are dependent upon a number of key management personnel. Our ability to manage our exploration, development and operating activities, and hence our success, depend in large part on the efforts of these individuals. We face intense competition for qualified personnel, and there can be no assurance that we will be able to attract and retain such personnel. We do not maintain "key person" life insurance. Accordingly, the loss of the services of one or more of such key management personnel could have a material adverse effect on our business.
Our business depends on good relations with our employees.
Production at our operations depends on the efforts of our employees. Endako Mine and Langeloth Facility each have certain unionized employees. The union agreements for Endako Mine and Langeloth Facility both expired in March 2013. A new labor agreement was reached with the union at our Langeloth Facility on January 2, 2013, covering the period from March 11, 2013 through March 11, 2016. Unionized employees at Endako Mine operated under the expired agreement until a new agreement was reached on January 7, 2014, which agreement is retroactive to April 1, 2013 and effective through March 31, 2015. Although our unionized employees have agreed to "no-strike" clauses in their respective union agreements, there can be no assurance that Endako Mine and Langeloth Facility will not suffer from work stoppages. A strike, lockout or other work stoppage at one or both of these operations could have a material adverse effect on our business, results of operations and financial condition. There can be no assurance that one or both union agreements will be renewed on a timely basis and on terms favorable to us. There is also a possibility that our employees at TC Mine and Mt. Milligan Mine will unionize in the future.
Further, changes in governmental regulations relating to labor relations, or otherwise in our relationship with our employees, including our unionized employees, may result in strikes, lockouts or other work stoppages, any of which could have a material adverse effect on our business, results of operations and financial condition.
Our stock price may be volatile and your investment in our common stock could suffer a decline in value.
Broad market and industry factors may adversely affect the price of our common stock, regardless of our actual operating performance. Factors that could cause fluctuation in the price of our common stock may include, among other things:
•changes in financial estimates by us or by any securities analysts who might cover our stock;
•speculation about our business in the press or the investment community;
•conditions or trends in our industry or the economy generally;
•changes in the prices of copper, gold or molybdenum;
•
stock market price and volume fluctuations of other publicly traded companies and, in particular, those that are in the mining industry;
•announcements by us or our competitors of significant acquisitions, strategic partnerships or divestitures;
•capital commitments;
•additions or departures of key personnel; and
•sales of our common stock, including sales by our directors, officers or significant stockholders.
In the past, securities class action litigation has often been instituted against companies following periods of volatility in their stock price. This type of litigation could result in substantial costs to us and divert our management’s attention and resources.
ITEM 1B.    UNRESOLVED STAFF COMMENTS
None.
ITEM 3.    LEGAL PROCEEDINGS
Stellat'en First Nation

38

In May 2010, the Stellat'en First Nation filed a petition in the Supreme Court of British Columbia against the British Columbia Minister of Energy, Mines and Petroleum Resources and TCM alleging that Endako Mine and the mill expansion project at Endako Mine represent infringements of the aboriginal title of the petitioners and impacts to their aboriginal rights, and that the government breached its duty to consult with the Stellat'en First Nation in relation to the impacts of Endako Mine and the mill expansion. The petitioners sought a declaration that the Provincial Crown did not fulfill its duty to consult with them in relation to the mill expansion project, a declaration that the mining permits and/or tenures held by TCM are invalid, an order quashing or setting aside the decision to issue a permit amendment to TCM and an injunction prohibiting further construction or alterations relating to the mill expansion project. The matter was heard by the Supreme Court of British Columbia in a hearing that took place in the first quarter of 2011. In August 2011, the Court dismissed the petitioners' claims in full. The Stellat'en First Nation subsequently filed a notice of appeal from that decision to the Court of Appeal of British Columbia seeking to have the decision of the Supreme Court of British Columbia set aside and seeking an order staying the permit amendment and any future permitting until the Province has engaged in further consultation. The British Columbia government and TCM filed materials in response to the notice of appeal, and the matter was heard by the Court of Appeal in a hearing that took place in November 2012. In September 2013, the Court of Appeal dismissed the Stellat'en First Nation’s appeal. In January 2014, the Stellat’en First Nation applied for leave from the Supreme Court of Canada to appeal the British Columbia Court of Appeal decision. The British Columbia government and TCM have filed materials with the Supreme Court of Canada in response, requesting that the Stellat’en First Nation’s application for leave to appeal be dismissed. The timing of the Supreme Court Canada’s decision on the leave application is uncertain at this time.

In April 2012, the Stellat'en First Nation filed a new petition in the Supreme Court of British Columbia against the British Columbia Minister of Energy, Mine and Petroleum Resources and TCM making similar allegations to those discussed above in relation to a new permit amendment and new water license granted to TCM in March 2012 for Endako Mine. In April 2012, the parties agreed to put this matter into abeyance. However, in January 2013 the Stellat'en First Nation indicated that they wish to proceed with this new petition. No date for hearing the new petition has been set.
ITEM 4.    MINE SAFETY DISCLOSURES
Under Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, mine operators are required to include in their periodic reports filed with the SEC certain information concerning mine safety violations and other regulatory matters. The required information is included in Exhibit 95 to this report.
PART II
ITEM 5.    MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUERS PURCHASES OF EQUITY SECURITIES
Price Range of Common Stock
Our common stock is listed on the New York Stock Exchange ("NYSE") under the symbol "TC" and the Toronto Stock Exchange ("TSX") under the symbol "TCM". On February 17, 2014, there were 171,463,409 shares of our common stock outstanding, which were held by 52 stockholders of record.
The following table sets forth information relating to the high and low sales prices of our common stock on the NYSE and TSX for the quarterly periods indicated.
 
 
 
 
Price Range of Common Stock
 
 
 
 
NYSE (US$)
 
TSX (C$)
 
 
 
 
High
 
Low
 
High
 
Low
2012
 
1st quarter
 
$9.50
 
$6.57
 
$9.43
 
$6.56
 
 
2nd quarter
 
$6.97
 
$3.06
 
$6.89
 
$3.13
 
 
3rd quarter
 
$3.87
 
$2.25
 
$3.76
 
$2.23
 
 
4th quarter
 
$4.29
 
$2.48
 
$4.26
 
$2.45
2013
 
1st quarter
 
$4.55
 
$2.95
 
$4.49
 
$2.99
 
 
2nd quarter
 
$3.94
 
$2.42
 
$4.00
 
$2.49
 
 
3rd quarter
 
$4.05
 
$2.81
 
$4.25
 
$2.94
 
 
4th quarter
 
$3.65
 
$1.72
 
$3.76
 
$1.84

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Dividends
We have not declared or paid any dividends on our common stock since the date of our formation. We intend to retain our earnings, if any, to finance the growth and development of our business and have no present intention of paying dividends or making any other distributions in the foreseeable future. In addition, the indentures governing our senior notes contains covenants restricting our ability to pay dividends to our shareholders.
Stock Performance Graph
The following graph compares the cumulative total shareholder return for $100 invested in our common stock on the TSX on December 31, 2008 against the cumulative total shareholder return of the S&P/TSX Composite Index and the S&P CompositeIndex—Materials for our five most recently completed years, assuming the reinvestment of all dividends (all amounts assume a foreign exchange rate of US$1.00 = C$1.00):

 
 
December 31,
 
 
2008
 
2009
 
2010
 
2011
 
2012
 
2013
Thompson Creek Metals Company Inc. 
 
$100.00
 
$251.63
 
$297.96
 
$145.31
 
$84.08
 
$35.20
S&P/TSX Composite Index
 
$100.00
 
$135.05
 
$158.83
 
$145.00
 
$155.42
 
$135.96
S&P/TSX Composite Index—Materials
 
$100.00
 
$134.17
 
$183.20
 
$144.36
 
$136.16
 
$103.04
The foregoing performance graph and related information shall not be deemed "soliciting material" or "filed" with the SEC or be subject to Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, each as amended, except to the extent that we specifically incorporate it by reference into such filing.
ITEM 6.    SELECTED FINANCIAL DATA
The following selected consolidated financial data is derived from our audited consolidated financial statements included in this report and our other reports filed with the SEC. The consolidated financial statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). These historical results are not necessarily indicative of results for any future period. The following table includes non-GAAP financial measures "adjusted net income (loss)," "adjusted net income (loss) per share—basic," and "adjusted net income (loss) per share—diluted." For a definition of these non-GAAP measures and a reconciliation to the most directly comparable financial measure calculated and presented in accordance with US GAAP, please read Non-GAAP Financial Measures in Item 7.

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Years Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
(US dollars in millions, except per share amounts)
Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
Copper sales
 
$
8.7

 
$
—

 
$
—

 
$
—

 
$
—

Gold sales
 
5.6

 
—

 
—

 
—

 
—

Molybdenum sales
 
400.8

 
386.8

 
651.9

 
578.6

 
$
361.9

Tolling, calcining and other
 
19.3

 
14.6

 
17.2

 
16.2

 
11.5

Total revenues
 
434.4

 
401.4

 
669.1

 
594.8

 
373.4

Costs and expenses:
 
 
 
 
 
 
 

 
 
Cost of sales
 
 
 
 
 
 
 

 
 
Operating expenses
 
318.9

 
374.5

 
392.8

 
315.5

 
241.3

Depreciation, depletion and amortization
 
61.2

 
64.0

 
74.7

 
49.9

 
43.4

Total cost of sales
 
380.1

 
438.5

 
467.5

 
365.4

 
284.7

Selling and marketing
 
9.3

 
8.0

 
9.7

 
9.3

 
7.5

Accretion expense
 
2.4

 
2.3

 
1.9

 
1.5

 
1.4

Asset impairments
 
194.9

 
530.5

 
—

 
—

 
—

General and administrative
 
21.6

 
27.6

 
26.5

 
21.9

 
23.8

Acquisition costs
 


 


 
—

 
12.9

 
—

Exploration
 
1.4

 
2.2

 
14.2

 
9.4

 
6.3

Total costs and expenses
 
609.7

 
1,009.1

 
519.8

 
420.4

 
323.7

Operating income (loss)
 
(175.3
)
 
(607.7
)
 
149.3

 
174.4

 
49.7

Other (income) expense
 
103.1

 
49.7

 
(154.0
)
 
40.5

 
103.7

Income and mining tax expense (benefit)
 
(63.4
)
 
(111.1
)
 
11.2

 
20.2

 
2.0

Net income (loss)
 
$
(215.0
)
 
$
(546.3
)
 
$
292.1

 
$
113.7

 
$
(56.0
)
Net income (loss) per share
 
 
 
 
 
 
 
 
 
 
—basic
 
$
(1.26
)
 
$
(3.24
)
 
$
1.75

 
$
0.79

 
$
(0.44
)
—diluted
 
$
(1.26
)
 
$
(3.24
)
 
$
1.73

 
$
0.75

 
$
(0.44
)
Basic weighted-average shares outstanding
 
171.1

 
168.4

 
167.2

 
144.7

 
127.5

Diluted weighted-average shares outstanding
 
171.1

 
168.4

 
168.6

 
152.5

 
127.5

Adjusted Non-GAAP Measures:(a)
 
 
 
 
 
 
 
 
 
 
Adjusted net income (loss) (1)
 
$
(5.0
)
 
$
(44.8
)
 
$
134.3

 
$
163.3

 
$
37.4

Adjusted net income (loss) per share—basic (1)
 
$
(0.03
)
 
$
(0.27
)
 
$
0.80

 
$
1.13

 
$
0.29

Adjusted net income (loss) per share—diluted (1)
 
$
(0.03
)
 
$
(0.27
)
 
$
0.80

 
$
1.08

 
$
0.29

Other Financial Data:
 
 
 
 
 
 
 
 
 
 
Cash generated by (used in) operating activities
 
$
44.8

 
$
(28.2
)
 
$
202.7

 
$
157.4

 
$
105.9

Capital expenditures
 
$
428.9

 
$
771.5

 
$
686.6

 
$
213.7

 
$
66.1

Balance Sheet Data as of December 31:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
233.9

 
$
526.8

 
$
294.5

 
$
316.0

 
$
158.5

Short-term investments
 
$
—

 
$
—

 
$
—

 
$
—

 
$
353.0

Total assets
 
$
3,085.5

 
$
3,410.2

 
$
2,947.2

 
$
2,317.7

 
$
1,344.6

Total debt, including capital lease obligations
 
$
1,012.8

 
$
1,010.5

 
$
374.9

 
$
22.0

 
$
12.9

Total liabilities
 
$
1,979.3

 
$
2,008.3

 
$
1,264.7

 
$
887.8

 
$
359.2

Shareholders' equity
 
$
1,106.2

 
$
1,401.9

 
$
1,729.5

 
$
1,429.9

 
$
985.4

______________________________________________________________________________
(1) See Non-GAAP Financial Measures in Item 7 for the definition and reconciliation of these non-GAAP measures.
ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management's Discussion and Analysis ("MD&A") provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Thompson Creek Metals Company Inc. and its subsidiaries (collectively, "Thompson Creek," "TCM," "we," "us" or "our") for the three years ended December 31, 2013, and should be read in conjunction with the Consolidated Financial Statements and accompanying notes

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thereto in Item 8 and Risk Factors in Item 1A. The following discussion and analysis contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is intended to be covered by the safe harbor created thereby. See the discussion of Forward-Looking Statements above.
 The results of operations reported and summarized below are not necessarily indicative of future operating results. Throughout this MD&A, all references to earnings or losses per share are on a diluted basis, unless otherwise noted. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("US GAAP"). All dollar amounts are expressed in United States dollars ("US$") unless otherwise indicated. References to C$ refers to Canadian dollars.
Highlights for 2013
•
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 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.

•
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.

•
Cash generated by operating activities was $44.8 million in 2013 compared to cash used in operating activities of $28.2 million 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.
See "Financial Review" and "Liquidity and Capital Resources" below for additional information related to highlights.

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Overview
We are a diversified North American mining company. We operate a copper and gold mine, two primary molybdenum mines and a metallurgical roasting facility
Our Mt. Milligan Mine ("Mt. Milligan Mine") is a conventional truck-shovel open-pit copper and gold mine and concentrator with a 66,000-ton per day copper-gold flotation processing plant. Mt. Milligan Mine has an estimated life of approximately 22 years (based on a copper price of $1.60 per pound and a gold price of $690 per ounce) and estimated average annual production of 81 million pounds of copper and 194,500 ounces of gold, each in concentrate, over the life of the mine. We began the commissioning and start-up phase of Mt. Milligan in the third quarter of 2013. We made our first shipment and sale of concentrate from Mt. Milligan in November 2013, which consisted of 2.8 million pounds of payable copper and 5,541 ounces of payable gold. We made our second shipment of concentrate in January 2014, which consisted of approximately 5.5 million pounds of payable copper and 10,475 ounces of payable gold. Mt. Milligan Mine reached commercial production as of February 18, 2014, defined as operation of the mill at 60% design capacity mill throughput for 30 days. We expect ramp-up to full design capacity during the next 12 to 18 months. At this time in the ramp-up process, mine pit grades are as we expected, metal recoveries in the mill are above expectations and mill throughput is still below design capacity. We are continuing to work through what we believe to be typical ramp-up issues. Due to the fact that we produced more than a de minimis amount of saleable concentrate in the fourth quarter of 2013, revenue and costs for Mt. Milligan are reflected in operating income, rather than in start-up costs, beginning in the fourth quarter of 2013, which had an adverse effect on operating margins and Mt. Milligan unit cash costs for the fourth quarter. 
Our molybdenum producing properties are Thompson Creek Mine, an open-pit molybdenum mine and concentrator in Idaho, USA ("TC Mine"), Endako Mine, an open-pit molybdenum mine, concentrator and roaster in British Columbia, Canada (in which we own a 75% joint venture interest) (“Endako Mine”) and the Langeloth Metallurgical Facility in Pennsylvania, USA (the “Langeloth Facility”). In March 2012, we completed a mill expansion project at Endako Mine, which increased ore processing capacity from 31,000 tons per day to 55,000 tons per day.
At TC Mine, molybdenum production for 2013 was 20.9 million pounds at a cash cost of $4.57 per pound produced compared to 16.2 million pounds at a cash cost of $8.06 per pound produced for 2012. The primary improvement in production and cash cost was the result of the planned mine pit sequencing, transitioning into Phase 7 of production in the second half of 2012, and suspending waste stripping activity associated with Phase 8 of production in October 2012. See "Non-GAAP Financial Measures" below for the definition and reconciliation of cash cost per pound produced.
Given declines in molybdenum prices and projected operating costs at TC Mine for 2015 and thereafter, in October 2012, we suspended waste stripping activity associated with Phase 8. Since that time, the molybdenum market has continued to weaken and, as a result, we decided 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. We intend to preserve the assets at TC Mine while it is on care and maintenance to enable us to re-commence operations if and when molybdenum market conditions improve. We 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, we recognized a pre-tax, non-cash write down of TC Mine property, plant, equipment assets and materials and supplies inventories of $129.4 million further discussed in Note 5 within Item 8.
At Endako Mine, our 75% share of molybdenum production for 2013 was 9.1 million pounds at a cash cost of $10.93 per pound produced compared to 6.2 million pounds at a cash cost of $15.42 per pound produced for 2012. The 2013 Endako cash cost includes our share of surplus and obsolete inventory write downs of $2.0 million, or $0.23 per pound.
During the first half of 2013, we were processing only stockpiled material at Endako Mine in an effort to reduce costs. We milled approximately one-third of our existing stockpiled material through mid-2013. We also experienced various operating issues during the first half of 2013, including not being able to feed sufficient water from the tailings pond to the mill on a consistent basis due to winter conditions, which negatively impacted mill throughput and production of molybdenum. During the second half of 2013, we re-commenced mining fresh ore at Endako Mine, and, as a result, we obtained higher ore grades and mill recoveries. Additionally, the optimization work performed by the Endako operations team improved production and cash costs per pound. We are currently processing both mined and stockpiled material. While operating results continue to improve at Endako Mine, management expects to continue optimizing production operating activities, undertaking additional cost savings and evaluating other measures at Endako in response to molybdenum market conditions.
We have revised our proven and probable reserves for both of our molybdenum mines using a price of $10 per pound of molybdenum oxide compared to $12 per pound used previously, which resulted in a significant reduction in reserves at Endako Mine and a nominal reduction in reserves at TC Mine. This revision was a triggering event to evaluate for potential long-lived

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asset impairment. Such evaluation led us 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 our 75% share of Endako Mine assets.
At December 31, 2013, we estimated 2014 cash capital expenditures to be between $54 million and $66 million.
As of December 31, 2013, we had working capital of $315.4 million, including $233.9 million of cash and cash equivalents, $54.1 million of receivables, $104.9 million of accounts payable and accrued liabilities and $37.2 million of short-term debt (which primarily represents equipment lease obligations). Total debt as of December 31, 2013 was $1,012.8 million, including capital lease obligations.
Our ability to fund our capital expenditures, our working capital needs and our scheduled debt and interest payments depends upon achieving sustainable future operating performance and operating cash flow at all of our operations and depends upon future average realized copper, gold and molybdenum prices. To that end, in addition to certain existing forward gold purchase and sales contracts discussed in Gold Stream Arrangement below, we may also hedge our exposure to fluctuations in the prices of copper and gold in connection with our day-to-day business.
Outlook
Our financial results can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum, fluctuations in our production and fluctuations in the US dollar-Canadian dollar foreign exchange rate. World market prices for our products and in the currency markets have fluctuated historically and are affected by numerous factors beyond our control. Any significant weakness in demand or reduction in commodity prices or the foreign exchange rates may have a material adverse effect on our operating results, cash flows and financial condition.
The key operating measures that management focuses on in operating our business are safety performance, production, unit cash cost 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 tonnes)

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

30 ± 10%
TC Mine, Endako Mine, Langeloth & other

10 ± 10%
Total capital expenditures

60 ± 10%

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_______________________________________________________________________________

(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 for 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 assumed a foreign exchange rate of US$1.00 = C$1.00.

(4)
Molybdenum production pounds represented are molybdenum oxide and high performance molybdenum disulfide (“HPM”) from our share of production from the mines but exclude molybdenum processed from purchased product.



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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