Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

TCM has three reportable segments, based on products and geography: US Operations Molybdenum, Canadian Operations Molybdenum and Copper-Gold (Development). The US Operations Molybdenum segment includes all mining, milling, mine site administration, roasting and sale of molybdenum products from the TC Mine and the Langeloth Facility, including the roasting at the Langeloth Facility of molybdenum products from the Endako Mine and all roasting and sales of third-party purchased material. The Canadian Operations Molybdenum segment includes all mining, milling, mine site administration, roasting and sale of molybdenum products from the 75% owned Endako Mine. The Copper-Gold (Development) segment includes all development expenditures and development site administration from Mt. Milligan. The Inter-segment represents the elimination of management fee income, revenue and cost of sales of product transported from the Canadian Operations to the US Operations for processing.

TCM's chief operating decision makers (Chief Executive Officer and Chief Operating Officer) evaluate segment performance based on segment revenue less costs and expenses. TCM attributes other income and expenses to the reporting segments if the income or expense is directly related to segment operations, as described above. TCM does not allocate corporate expenditures such as general and administrative, exploration and interest income and expense items to its reporting segments, unless such expenditures are directly related to segment operations. Segment information for the three months ended March 31, 2013 and 2012 is as follows:

For the three months ended March 31, 2013:

(in millions)	US Operations Molybdenum		Canadian Operations Molybdenum			Copper-Gold (Development)			Inter- segment			Total
Revenues
Molybdenum sales	$	89.8	$	14.9		$	—		$	—		$	104.7
Tolling, calcining and other	4.0		—			—			—			4.0
	93.8		14.9			—			—			108.7
Cost and expenses
Operating expenses	53.4		15.2			—			—			68.6
Selling and marketing	1.7		0.8			—			(0.2		)	2.3
Depreciation, depletion and amortization	7.5		4.8			—			—			12.3
Accretion expense	0.3		0.4			0.1			—			0.8
	62.9		21.2			0.1			(0.2		)	84.0
Segment revenue less costs and expenses	30.9		(6.3		)	(0.1		)	0.2			24.7
Other segment expenses
Loss on foreign exchange	0.7		1.6			3.8			—			6.1
Segment income (loss) before income and mining taxes	$	30.2	$	(7.9	)	$	(3.9	)	$	0.2		$	18.6

For the three months ended March 31, 2012:

(in millions)	US Operations Molybdenum			Canadian Operations Molybdenum			Copper-Gold (Development)			Inter- segment			Total
Revenues
Molybdenum sales	$	84.5		$	25.1		$	—		$	—		$	109.6
Tolling, calcining and other	4.0			—			—			—			4.0
	88.5			25.1			—			—			113.6
Cost and expenses
Operating expenses	70.9			28.7			—			—			99.6
Selling and marketing	1.4			0.8			—			(0.3		)	1.9
Depreciation, depletion and amortization	5.7			13.3			—			—			19.0
Accretion expense	0.4			0.1			—			—			0.5
	78.4			42.9			—			(0.3		)	121.0
Segment revenue less costs and expenses	10.1			(17.8		)	—			0.3			(7.4		)
Other segment income
Gain on foreign exchange	(0.6		)	(0.9		)	(3.0		)	—			(4.5		)
Segment income (loss) before income and mining taxes	$	10.7		$	(16.9	)	$	3.0		$	0.3		$	(2.9	)

Reconciliation of Segment Income to Net Income

(in millions)	For the Three Months Ended March 31,
	2013			2012
Segment income (loss)	$	18.6		$	(2.9	)
Other (income) expense
Change in fair value of common stock purchase warrants	—			0.1
General and administrative	7.1			7.7
Exploration	0.1			0.8
Interest (income) expense, net	(0.1		)	1.3
Loss (gain) on foreign exchange	13.3			(2.1		)
Corporate depreciation	0.5			0.6
Other	—			(0.3		)
Loss before income and mining taxes	(2.3		)	(11.0		)
Income and mining benefit expense	(3.2		)	(12.1		)
Net income	$	0.9		$	1.1

Other segment information regarding capital expenditures, assets and liabilities, including the assets and liabilities attributed to corporate operations, is as follows (in millions):

As of March 31, 2013	US Operations Molybdenum		Canadian Operations Molybdenum		Copper-Gold (Development)		Inter-segment		Total
Capital expenditures (1)	$	0.3	$	0.3	$	154.4	$	0.1	$	155.1
Property, plant, equipment and development	$	275.9	$	181.6	$	2,160.2	$	4.9	$	2,622.6
Assets	$	480.1	$	247.4	$	2,240.9	$	459.6	$	3,428.0
Liabilities	$	81.8	$	19.1	$	882.8	$	1,065.8	$	2,049.5

As of March 31, 2012	US Operations Molybdenum		Canadian Operations Molybdenum		Copper-Gold (Development)		Inter-segment		Total
Capital expenditures (2)	$	4.9	$	42.1	$	140.8	$	0.1	$	187.9
Property, plant, equipment and development	$	291.5	$	740.0	$	1,552.7	$	6.2	$	2,590.4
Goodwill	$	47.0	$	—	$	—	$	—	$	47.0
Assets	$	583.3	$	815.0	$	1,605.3	$	79.5	$	3,083.1
Liabilities	$	92.1	$	128.9	$	698.7	$	403.5	$	1,323.2

(1)  Capital expenditures are for the three months ended March 31, 2013.

(2)  Capital expenditures are for the three months ended March 31, 2012.