One of the World s Largest Publicly Traded PURE MOLYBDENUM PRODUCERS

Transcription

1 One of the World s Largest Publicly Traded PURE MOLYBDENUM PRODUCERS June 3-4, 2010

2 Cautionary Statements This document contains forward-looking information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of molybdenum, currency fluctuations, energy price fluctuations, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims and limitations of insurance coverage. Often, but not always, forward-looking statements can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, or believes or variations (including negative variations) of such words and phrases, or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to general business, economic, competitive, political and social uncertainties including the current global recessionary economic conditions, the associated low molybdenum prices and the levels of disruption and continuing illiquidity in the credit markets; risks related to foreign currency fluctuations; risks related to the volatility of the Company s share price; changes in environmental regulation; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations of ore grade or recovery rates; impurities and toxic substances in the mined material, failure of plant, equipment or processes to operate as anticipated; the age of the Langeloth Facility; structural integrity and old equipment at the Endako Mine; accidents, labor disputes and other risks of the mining industry; access to skilled labor; relations with employees; dependence upon key management personnel and executives; political instability, insurrection or war; disruption of transportation services; increased transportation costs and delays in obtaining governmental permits and approvals, or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled Risk Factors in the current Annual Report on Form 10-K filed on EDGAR at and on SEDAR at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this document and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. Readers should refer to Thompson Creek s current Annual Report on Form 10- K which will be available on SEDAR at and EDGAR at and other continuous disclosure documents available at and for further information on mineral reserves and resources, which is subject to the qualifications and notes set forth therein. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: This presentation uses the terms Measured, Indicated and Inferred Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Inferred Mineral Resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. 2

3 TC Stock Price vs. S&P500 November 2006 May

4 Company Overview (NYSE: TC; TSX: TCM) One of the largest, publicly traded, pure moly companies Strong cash position, very low debt* Production increase planned in 2010 after production was curtailed in 2009 to conserve cash Measured and Indicated Mineral Resources: 1.2 billion lbs Mo** Proven and Probable Mineral Reserves: 600 million lbs Mo** Established North American operations, experienced operations management and excellent record of safety and environmental compliance Organic growth potential * $11.5 million in debt, mainly equipment loans, outstanding on March 31, ** Mineral reserves and resources estimates for Thompson Creek Mine by Scott Wilson Roscoe Postle Associates. Mineral resources estimates by Wardrop Engineering for Endako Mine. Mineral resources estimates by Gary Giroux for the Davidson Deposit. Mineral reserves estimates for Endako Mine and Davidson Deposit by site personnel supervised by Ken Collison, P.Eng., former Chief Operating Officer, Thompson Creek Metals. Estimates exclude potential resources and reserves at the Mt. Emmons Deposit. 4

5 Thompson Creek Properties Production Operations Development Projects DAVIDSON PROJECT High Grade Underground Deposit British Columbia CANADA ENDAKO MINE (75%) Open Pit Mine Concentrator Roasting Facility Idaho Colorado 72 USA Pennsylvania LANGELOTH METALLURGICAL FACILITY Roasting Facility FeMo Production THOMPSON CREEK MINE Open Pit Mine Concentrator MT. EMMONS PROJECT High Grade Underground Deposit 5

6 Q Financials (US$) First Quarter 2010 Revenue $ million Operating cash flow $ 25.6 million Net Income $ 1.1 million Net income/share basic $ 0.01 diluted $ 0.00 Adjusted Net Income* $ 25.6 million Adjusted Net income/share basic* $0.18 diluted* $ 0.17 Molybdenum production 8.3 million lbs Production cash costs** $ 5.36/lb Average realized price $ 14.50/lb Cash + S-T Investments*** $ million Total debt*** $ 11.4 million * Non-GAAP Measure. Excludes $24.5 million non-cash charge related to warrants. ** Non-GAAP measure. See Q Quarterly Report on Form 10-Q for additional information. *** As at March 31,

7 Production Estimates Millions of pounds contained Mo Guidance Thompson Creek Mine Endako Mine (75% share) Total Production Molybdenum Oxide production costs* $7.54 $5.84 $6 - $7 Components: Thompson Creek Mine costs/lb* $7.75 $5.72 $ $6.50 Endako Mine costs/lb* $7.15 $6.13 $7 - $8 * Molybdenum oxide production costs (US$/lb Mo) include all stripping costs and assume an exchange rate of US$1 = C$1.05 for Endako costs in

8 Capital Expenditures and Cash Resources + Debt Capital Expenditures U.S. Dollars Estimate Maintenance Capex-Operations $39.7 million $89 million Endako Expansion Capex (75% share) $20.5 million $209 million Total $60.2 million $298 million Cash Resources + Debt Cash/Investments (March 31, 2010) Potential Cash from Warrant Exercise (October 2011) (24.5 million warrants outstanding, exercisable at C$9/share, expiring October 23, 2011) Total Debt (March 31, 2010) $523.6 million C$220 million $11.4 million 8

9 THOMPSON CREEK MINE IDAHO 9

10 Thompson Creek Mine Key Facts Mo Production Estimate million lbs in 2010 Estimated cash costs (Mo oxide) $ $6.50 per lb in 2010 Proven and Probable mineral reserves Measured + Indicated mineral resources 277 million lbs Mo* Average grade of 0.084% Mo 445 million lbs Mo* Average grade of 0.068% Mo 16-year mine life (based on 2P Reserves) * Mineral reserves and resources were estimated by site personnel and audited by Scott Wilson Roscoe Postle Associates Inc., based on a cut-off grade of 0.03%, as of May 31, The reserves estimates assumed a long-term molybdenum price of US$10 per pound and updated costs. 10

11 Thompson Creek Mine Cross Section 11

12 LANGELOTH METALLURGICAL FACILITY PENNSYLVANIA 12

13 Langeloth Key Facts Roasting capacity approximately 35 million lbs per year of molybdenum oxide Major North American producer of ferro-molybdenum Processing complex has four multiple-hearth Mo roasters 2 additional roasters committed to toll catalyst recycling involving other metals Low sustaining capex over the next decade 13

14 ENDAKO MINE BRITISH COLUMBIA 14

15 Endako Mine (75% owned) TC s 75% share Mo production Estimates: 7-8 million lbs in 2010 Estimated cash costs (Mo oxide): $ $8.00 per lb in 2010 Key Facts (100%): Mill capacity 31,000 tons/day; Mine life of 26 years Expansion/modernization project is expected to raise mill capacity to 55,000 tons/day and reduce mine life to 16 years Proven and Probable mineral reserves: 306 million lbs Mo* Average grade of 0.05% Measured + Indicated mineral resources: 464 million lbs Mo** Average grade of 0.043% * Mineral reserves estimates by site personnel supervised by Ken Collison, P.Eng., former Thompson Creek Chief Operating Officer, based on a cut-off grade of 0.02%, assumed molybdenum price of US$10 per pound, and updated costs, as of December 31, ** Mineral resource estimates by Wardrop Engineering Inc. based on a cut-off grade of 0.02%, as of April

16 Endako Mine 16

17 DAVIDSON PROJECT BRITISH COLUMBIA 17

18 Davidson Project Key Facts Long-life, high-grade underground deposit near Smithers, B.C. Measured + Indicated mineral resources: 288 million lbs Mo* Average grade of 0.169% Project focused on processing ore at Endako, 125 miles away Application for environmental permit filed in September 2008 Development decision delayed in November 2008 due to economic uncertainty Project currently being re-evaluated regarding various operating alternatives and related economic analysis * Estimated by Gary Giroux, P.Eng., a qualified person under NI , as of April 10,

19 Davidson Underground Workings Cross Section 19

20 MOUNT EMMONS PROJECT COLORADO 20

21 Mount Emmons Project Key Facts One of the largest, highest-grade, undeveloped molybdenum deposits in the world Historical mineral resource: 760 million lbs contained Mo* Resource includes high-grade section: 180 million lbs contained Mo from 20.5 million tons grading 0.438% Mo at cut-off grade of 0.30% Mo* Well-delineated deposit. By 1983, $150 million had been spent on property development including approx. 157,000 feet of core drilling TCUSA is project manager with option to acquire 15% for $15 million, or 50% for $50 million, or 75% for $400 million incurred as payments (max. $6.5 million) to U.S. Energy or spending on the project * A 1998 mineral resource estimate based on the concept of underground mining with a 6,000 tons per day mill was summarized in an April 10, 2007 Behre Dolbear & Company Inc. technical report filed on Sedar by Kobex Resources Ltd. It showed a historical mineral resource of 166,654,000 tons grading 0.38% MoS2 (0.228% Mo) at a cutoff grade of 0.2% MoS2 (0.12% Mo). This resource contains an estimated 760 million pounds of molybdenum (Mo). The historical estimates are the most recent estimates available, and Thompson Creek believes them to be relevant. However, the estimates should not necessarily be relied upon. Thompson Creek has not done the work necessary to have the historical estimates verified. 21

22 Mount Emmons Project Current Project Evaluation Activities Pre-feasibility study Environmental baseline and pre-permitting activities Community relations program 2010 budget: $7 million to $9 million 22

23 Growth by Acquisition Growth Objectives: Increase presence in moly sector Add to revenue/income stream Diversify income sources Enhance shareholder return Strong balance sheet, liquid currency + significant debt capacity allow for growth by acquisition 23

24 Capital Structure TC/TCM Common Shares (US$)** Recent share price $9.50 Current market cap $1.3 billion 52-week low/high $8.35/15.64 Shares outstanding Share options Warrants (C$9 exercise price) Shares fully diluted Debt* (Mar. 31, 2010) Cash Balances (Mar. 31, 2010) million 5.8 million 24.5 million million $11.4 million $523.6 million Listings: NYSE:TC, TSX:TCM, TSX:TCM.WT * Mostly equipment loans ** Updated May 26,

25 Molybdenum Overview Essential metal for today s modern industry Strengthens steel, improves weldability, reduces brittleness, helps steel perform well in very high or low temperatures Powerful anti-corrosive alloy for stainless and alloy steels Key catalyst in petroleum refining for sulfur removal $7 billion industry at current molybdenum prices Molybdenum began trading on London Metal Exchange in February

26 First Use of Molybdenum* *Estimates for 2008, including Mo in scrap. Source: International Molybdenum Association (IMOA). 26

27 End Use of Molybdenum* *Estimates for 2008, including Mo in scrap. Source: International Molybdenum Association (IMOA) 27

28 Molybdenum Prices

29 Molybdenum - World Demand *Source: CRU and other industry sources (CRU data only for 2005 to 2009) 29

30 Molybdenum World Production 12% Other 8% Peru 4% Canada 34% China 17% Chile 25% USA 30

31 Molybdenum Mining Cash Costs* <$5/lb Range Type Most copper-molybdenum by-product mines Percentage of World Output 50% $5/lb - $9/lb Large primary mines** 25% $9/lb - $15/lb Smaller surface and underground primary mines mainly in China 25% * Approximate US$ cash costs for mining, milling and roasting. ** Includes: Henderson Mine (Freeport), China Molybdenum, Jinduicheng, Thompson Creek Mine, and Endako Mine 31

32 China Government regulation aimed at limiting exports Export taxes: 20% tax on ferromolybdenum 15% tax on molybdenum oxide Export quotas: Introduced in 2007 Government considering production quotas in 2010 China now a Net Importer of moly and likely to remain one as consumption in China is expected to grow more rapidly than production 32

33 China s Molybdenum Trade Position Three Months Annualized Orange line above the zero line indicates net exports; orange line below the zero line indicates net imports. 33

34 Molybdenum Outlook Short-term: Recovery underway Demand supported by new uses and continued energy/infrastructure investment Supply constrained: Development of major new mines delayed by financial crisis Medium term: price strength anticipated as world economy continues to grow 34

35 Why Own Thompson Creek Metals? Established world-class operations in North America with significant Mineral Reserves and Resources Strong cash position; low debt* Production expected to increase in 2010 Expansion/development projects to contribute to production in the future Opportunity for growth by acquisition Proven operations/management team committed to enhancing shareholder value Long-term moly prices supported by rising demand/new uses *$11.5 million in debt, mainly equipment loans, as of March 31,

36 One of the World s Largest PUBLICLY TRADED PURE MOLYBDENUM PRODUCERS (NYSE:TC, TSX:TCM) 36

37 Appendix 37

38 Thompson Creek Management Team Kevin Loughrey Chairman and Chief Executive Officer: Approximately 26 years of industry experience, former VP, General Counsel, Secretary Cyprus Amax Pamela L. Saxton Chief Financial Officer: Former VP Finance, U.S. Operations, Franco-Nevada; more than 30 years of financial and accounting experience in mineral resource industry Scott ShellhaasChief Operating Officer: Over 25 years of operations experience including former President and COO of Amax Gold Inc. and President of Cyprus Australia Coal Co. Mark A. WilsonVice President Sales and Marketing: Formerly with Climax Molybdenum Co., Goldbelt Resources (President, CEO, CFO); Cyprus Minerals Co. 38

39 Molybdenum (Products and Uses) MINE ORE MILLING WASTE TAILINGS HIGH PURITY MOLYBDENUM DISULFIDE MOLYBDENUM DISULFIDE CONCENTRATE LUBRICATING OIL & GREASE ADDITIVES ROASTING TECHNICAL GRADE MOLYBDENUM OXIDE Thompson Creek Operations Other 39

40 Molybdenum (Products and Uses) TECHNICAL GRADE MOLYBDENUM OXIDE SUBLIMATION FERROMOLYBDENUM REDUCTION PURE OXIDE REDUCTION MO METAL SUPERALLOYS LIGHTING PRODUCTS ELECTRONICS MOLYBDENUM METAL PRODUCTS HIGH-TEMPERATURE APPLICATIONS CATALYSTS PETROCHEMICAL OXIDE POWDER, BRIQUETTES STAINLESS STEEL ALLOY STEEL TOOL & HIGH SPEED STEEL CAST IRONS Thompson Creek Operations Other FERROMOLYBDENUM FOUNDRIES & STEEL MILLS 40

41 Molybdenum (Products and Uses) TECHNICAL GRADE MOLYBDENUM OXIDE CHEMICAL MANUFACTURING AMMONIUM MOLYBDATES SODIUM MOLYBDATES OTHER, CARBIDES, SILICIDES CATALYSTS PETRO-CHEMICAL SMOKE SUPPRESSANTS PIGMENTS CALCINING CORROSION INHIBITORS AGRICULTURE MICRONUTRIENTS PIGMENTS SURFACE COATINGS HEALTH MICRONUTRIENTS CERAMICS NANO-MATERIALS PURE OXIDE Thompson Creek Operations Other 41

42 Limited Substitutability MOLYBDENUM S PHYSICAL PROPERTIES WEIGHT Tremendous strength but still light in weight TEMPERATURE RESISTANCE Highly resistant to extreme temperatures EXPANSION RESPONSE TO HEATING AND COOLING Low expansion to heating and cooling: superior bondability RESISTANCE TO UNIFORM COMPRESSION Exceptional incompressibility HARDNESS Great Strength MO IS LIGHTER THAN Tantalum Tungsten MO HAS A HIGHER MELTING POINT THAN Boron Chromium Niobium Vanadium MO REACTS LESS TO TEMPERATURE CHANGES THAN Boron Chromium Graphite (via Carbon) Niobium Tantalum Tungsten MO HAS BETTER RESISTANCE TO COMPRESSION THAN Chromium Graphite (via Carbon) Niobium Tantalum Vanadium MO IS HARDER THAN Chromium Niobium Tantalum Vanadium Vanadium Measured By: Measured By: Measured By: Measured By: Measured By: Standard Atomic Weight g/mol and Density kg/mˆ3 High Melting Point ( C) Coefficient of Thermal Expansion [/K-1* 10ˆ6] (at 0 C) Bulk Modulus/Gpa Vickers Hardness/Mpa 42

43 Top 10 Producers of Molybdenum Output (millions lbs Mo*) Top 10 Producers* Freeport** Codelco Grupo Mexico**** China Molybdenum Jinduicheng Thompson Creek*** Rio Tinto/Kennecott Antofagasta Antamina Collahuasi * Source: CRU, contained molybdenum, by operator, estimates for 2007, 2008 and 2009; ** Includes all of Cerro Verde output (Freeport owns 53%) *** Includes all of Endako (Thompson Creek owns 75%) **** Includes Southern Copper and Asarco operations 43

44 Structural Changes in Moly Demand A. Moly is a metal for developed economies Rapid industrialization of China, India, Brazil, and Russia B. Demand follows growth in wealth Desalination plants/power generation/oil refineries C. Industrial requirements demand better steels Higher operating temperatures Need for fuel economy drives improved strength-to-weight ratios (ex. autos) 44

45 Structural Changes in Moly Demand D. Growing catalyst use in oil refineries Higher sulfur content in refinery feedstock Tougher sulfur emission standards for refinery outputs - gasoline and diesel E. Limited substitution away from moly Steel alloy formulas proven over time Moly cost is less than the value of the benefits 45

46 Growing Uses for Molybdenum New cars: Refinery catalysts: Desire for fuel savings and improved crash-test results causing use of stronger, lighter steel alloys (0.9 lb Mo/ new car) Government regulations forcing reduction of sulfur in gasoline and diesel fuels hence greater use of moly catalysts at petroleum refineries Project economics: Strength-weight concerns and cost savings driving new use of Mo-bearing, high-strength steels in industrial applications* Nuclear: Each new reactor needs 400, ,000 lbs of Mo Moly-bearing pipe mandated for retrofits at existing reactors * Example: Newer pipeline steel allows thinner walls for same throughput pressure; if it contains 0.25% Mo and is 30-inch diameter with 5/8-inch wall thickness, a 1,000-mile pipeline requires 2.5 million lbs Mo 46

47 Molybdenum Demand Category Applications Steel Full Alloy Stainless Carbon Tool High Strength, Low Alloy (HSLA) Construction/automotive industries, shipbuilding, heavy machinery, offshore pipelines Biofuel tanks, flue gas, desulphurization in oil and coal units, desalination plants Construction and transportation, tunnels, food storage, communication Manufacture of tools and the cutting or shaping of power machinery Oil and gas pipelines, construction and automotive industries, bridges 47

48 Molybdenum Demand Category Other Metallurgical Superalloys Applications Superchargers, aircraft turbine engines, gas turbines, chemical and petroleum plants Cast Iron Mo Metal & Alloys Diesel engine motor blocks and cylinder heads, mining, milling, and crushing Auto parts, lamp filaments, glass manufacturing, heat shields, optical coatings Non-Metallurgical Catalysts Lubricants Pigments Other Chemical Petroleum hydroprocessing and hydrodesulfurization High performance base oils, greases, synthetic fluids, bond coatings, friction products Paints, inks, plastic and rubber products, and ceramics Smoke suppressants, PVC cabling, metal-based smoke suppressants 48

49 Comparables: Pure Moly Producers Thompson Creek* China Molybdenum** Jinduicheng*** 2008 Revenues US$648 million* US$475 million US$870 million 2008 Profit US$183.2 million US$198 million US$402 million 2008 Profit/share US$1.53 US$0.036 US$0.161 Market capitalization US$1.3 billion US$2.8 billion US$5.1 billion * Thompson Creek Metals Company reported 2008 results in U.S. dollars on March 19, Reported revenues of $1.01 billion included sales of third-party molybdenum whereby concentrate was purchased, roasted and sold by the company. However, excluding such third-party sales, the company s sales of its own mined molybdenum were about $648 million. Market capitalization is based on million common shares outstanding and share price of US$9.50. On a fully diluted basis, assuming exercise of warrants and employee stock options outstanding, the number of shares outstanding would be million and market capitalization on this basis would be US$1.6 billion. ** China Molybdenum on March 22, 2009 reported sales of RMB5.6 billon, net profit of RMB1.64 billon and net profit per share of RMB0.34 for Exchange rate used for conversion is RMB6.85 per U.S. dollar. Market capitalization is based on 4.9 billion shares outstanding, share price of HK$4.50, and exchange rate of HK$7.8 per U.S. dollar. The company s shares are traded on the Hong Kong Exchange under symbol *** Jinduicheng (JDC) on February 17, 2009 reported sales of RMB5.96 billion, net profit of RMB2.75 billion and net profit per share of RMB1.10 for Market capitalization is based on 2.7 billion shares outstanding and share price of RMB Exchange rate used for the conversion is RMB6.85 per U.S. dollar. JDC s shares are traded on the Shanghai Stock Exchange under the symbol Updated May 26,

50 Molybdenum Production Comparison (million lbs contained Mo) Thompson Creek* China Molybdenum** Jinduicheng** N/A * Thompson Creek estimates include only 75% of Endako. ** 2008, 2009 and 2010 estimates provided in company reports. 50

51 Net Exports/Imports from China Source: International Molybdenum Association (IMOA). Net exports = exports minus imports. 51

52 Thompson Creek Mine Mineral Reserves and Resources Category Reserves Tons (million) Grade (%Mo) Contained Mo (million lbs)* Proven Probable P Total Category Resources Tonnes (million) Grade (%Mo) Contained Mo (million lbs)* Measured Indicated M+I Total Category Resources Tonnes (million) Grade (%Mo) Contained Mo (million lbs)* Inferred ** Mineral reserves and resources were estimated by site personnel and audited by Scott Wilson Roscoe Postle Associates Inc., based on a cut-off grade of 0.03%, an assumed long-term molybdenum price of US$10 per pound and updated costs, as of May 31, The mineral reserves and resources were audited by John T. Postle, M.Sc., P.Eng., Christopher Moreton, Ph.D., P.Geo., and Kevin Scott, P.Eng., all of whom are qualified persons as defined in National Instrument Proven and Probable mineral reserves estimate is included in the Measured and Indicated mineral resources estimate. 52

53 Endako (100%) Mineral Reserves and Resources* Category Reserves Tons (million) Grade (%Mo) Contained Mo (million lbs)** Proven Probable P Total Category Resources Tonnes (million) * Thompson Creek Metals Company owns 75% of the Endako Mine. Grade (%Mo) Contained Mo (million lbs)*** Measured Indicated M+I Total Category Resources Tonnes (million) Grade (%Mo) Contained Mo (million lbs)* Inferred ** Mineral reserves are as of December 31, 2008 and have been estimated by site personnel supervised by Ken Collison, P.Eng., former Thompson Creek Chief Operating Officer, who is a qualified person as defined in National Instrument Reserves are based on a cut-off grade of 0.02%, an assumed molybdenum price of US$10 per pound, and updated costs. *** Mineral resource estimates are by Wardrop Engineering Inc. based on a cut-off grade of 0.02%, as of April 30, Greg Mosher, P.Geo., is the qualified person as defined in National Instrument for the resource estimates. Proven and Probable mineral reserves estimate is included in the Measured and Indicated resources estimate. Numbers may not add due to rounding. 53

54 Davidson Project Mineral Reserves and Resources Measured and Indicated Mineral Resources* Cut-off Grade (% Mo) Tonnes (million) Grade (%Mo) Contained Mo (million lbs)* 0.12 (0.20 MoS²) (0.30 MoS²) Proven and Probable Mineral Reserves 10-Year Mine Plan** Cut-off Grade (% Mo) Tonnes (million) Grade (%Mo) Contained Mo (million lbs)* % * Mineral resources are estimated as of April 10, 2007 by Gary Giroux, P.Eng., a qualified person under NI ** Mineral reserves are proven and probable and are estimated as of December 31, 2007 by site personnel supervised by Ken Collison, P.Eng., former Thompson Creek Chief Operating Officer, a qualified person under NI Reserve estimates were limited to only 10 years for feasibility study on planned shipment of ore to Endako. 54

55 London Metal Exchange Began trading on February 22, 2010 Immediate cash delivery will start May 24, 2010 Advantages Price set by demand and supply Transparent Heavily regulated market Efficient/accurate hedging Disadvantages Speculators may impact real price to the detriment of the market 55

56 LME Molybdenum Specifications Product Molybdenum Oxide Content 60% with tolerance of 57-63% Impurities Copper < 0.05% Lead < 0.05% Phosphorus < 0.05% Sulfur < 0.1% Carbon < 0.1% Moisture < 0.1% Lot size Delivery size Currency 6 tonnes of Mo 10 tonnes of Product US dollars 56

57 LME Physical Market is Inefficient There is no quality guarantee for the Buyer Product must be assayed at an LME warehouse by accepted third party assayer as basis for valuation days required before lot may be put under LME warrant Can a financial market work efficiently if the physical market is inefficient? 57

58 Company Sales Q 2010 Contract and Spot Sales Contract Sales Market Price 80% 46% 60% Fixed Price 3% 8% 5% Spot Sales 17% 46% 35% 58