Segment Information

9 Months Ended

Sep. 30, 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. The US Operations Molybdenum segment includes all mining, milling, mine site administration, roasting and sale of molybdenum products from TC Mine and the Langeloth Facility, including the roasting at the Langeloth Facility of molybdenum products from 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 segment includes all expenditures and site administration from Mt. Milligan, including all development costs until September 2013, when the Mine moved into the start-up phase. 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 and nine months ended September 30, 2013 and 2012 was as follows:

For the three months ended September 30, 2013:

(in millions)	US Operations Molybdenum		Canadian Operations Molybdenum			Copper-Gold			Inter- segment			Total
Revenues
Molybdenum sales	$	67.1	$	19.1		$	—		$	(0.5	)	$	85.7
Tolling, calcining and other	5.1		—			—			—			5.1
	72.2		19.1			—			(0.5		)	90.8
Cost and expenses
Operating expenses	44.8		19.8			—			(0.5		)	64.1
Selling and marketing	1.8		(0.1		)	—			(0.3		)	1.4
Depreciation, depletion and amortization	8.2		5.7			—			—			13.9
Accretion expense	0.3		0.2			0.1			—			0.6
	55.1		25.6			0.1			(0.8		)	80.0
Segment revenue less costs and expenses	17.1		(6.5		)	(0.1		)	0.3			10.8
Other segment expenses
(Gain) loss on foreign exchange	0.1		0.3			(4.2		)	—			(3.8		)
Segment income (loss) before income and mining taxes	$	17.0	$	(6.8	)	$	4.1		$	0.3		$	14.6

For the three months ended September 30, 2012:

(in millions)	US Operations Molybdenum			Canadian Operations Molybdenum			Copper-Gold			Inter- segment			Total
Revenues
Molybdenum sales	$	53.4		$	19.7		$	—		$	(0.5	)	$	72.6
Tolling, calcining and other	2.3			—			—			—			2.3
	55.7			19.7			—			(0.5		)	74.9
Cost and expenses
Operating expenses	59.3			26.9			—			(0.5		)	85.7
Selling and marketing	1.0			0.7			—			(0.3		)	1.4
Depreciation, depletion and amortization	4.8			11.6			—			—			16.4
Accretion expense	0.4			0.1			—			—			0.5
	65.5			39.3			—			(0.8		)	104.0
Segment revenue less costs and expenses	(9.8		)	(19.6		)	—			0.3			(29.1		)
Other segment income
(Gain) loss on foreign exchange	(1.2		)	(2.1		)	(6.0		)	—			(9.3		)
Segment income (loss) before income and mining taxes	$	(8.6	)	$	(17.5	)	$	6.0		$	0.3		$	(19.8	)

For the nine months ended September 30, 2013:

(in millions)	US Operations Molybdenum		Canadian Operations Molybdenum			Copper-Gold			Inter- segment			Total
Revenues
Molybdenum sales	$	246.2	$	57.4		$	—		$	(0.5	)	$	303.1
Tolling, calcining and other	14.2		—			—			—			14.2
	260.4		57.4			—			(0.5		)	317.3
Cost and expenses
Operating expenses	150.1		56.8			—			(0.5		)	206.4
Selling and marketing	5.3		1.9			—			(0.8		)	6.4
Depreciation, depletion and amortization	24.9		18.4			—			—			43.3
Accretion expense	1.0		0.7			0.3			—			2.0
	181.3		77.8			0.3			(1.3		)	258.1
Segment revenue less costs and expenses	79.1		(20.4		)	(0.3		)	0.8			59.2
Other segment expenses
(Gain) loss on foreign exchange	0.5		0.8			5.9			—			7.2
Segment income (loss) before income and mining taxes	$	78.6	$	(21.2	)	$	(6.2	)	$	0.8		$	52.0

For the nine months ended September 30, 2012:

(in millions)	US Operations Molybdenum			Canadian Operations Molybdenum			Copper-Gold			Inter- segment			Total
Revenues
Molybdenum sales	$	227.9		$	65.6		$	—		$	(1.7	)	$	291.8
Tolling, calcining and other	10.2			—			—			—			10.2
	238.1			65.6			—			(1.7		)	302.0
Cost and expenses
Operating expenses	213.4			79.0			—			(1.6		)	290.8
Selling and marketing	3.2			2.2			—			(0.9		)	4.5
Depreciation, depletion and amortization	16.0			30.6			—			—			46.6
Accretion expense	1.2			0.3			0.1			—			1.6
	233.8			112.1			0.1			(2.5		)	343.5
Segment revenue less costs and expenses	4.3			(46.5		)	(0.1		)	0.8			(41.5		)
Other segment income
(Gain) loss on foreign exchange	(1.1		)	(2.1		)	(5.0		)	—			(8.2		)
Segment income (loss) before income and mining taxes	$	5.4		$	(44.4	)	$	4.9		$	0.8		$	(33.3	)

Reconciliation of Segment Income (Loss) to Net Income (Loss)

(in millions)	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Segment income (loss)	$	14.6		$	(19.8	)	$	52.0		$	(33.3	)
Other expense (income)
Goodwill impairment	—			47.0			—			47.0
Change in fair value of common stock purchase warrants	—			—			—			(1.8		)
General and administrative	5.1			7.0			17.7			22.1
Start-up costs	10.2			0.2			10.3			5.3
Exploration	0.7			0.5			1.3			1.9
Interest expense (income), net	0.3			1.0			—			3.6
(Gain) loss on foreign exchange	(20.4		)	(12.0		)	22.8			(11.8		)
Corporate depreciation	0.5			0.6			1.4			1.5
Other	0.2			0.1			—			(0.3		)
Income (loss) before income and mining taxes	18.0			(64.2		)	(1.5		)	(100.8		)
Income and mining tax expense (benefit)	4.2			(16.0		)	3.0			(38.9		)
Net income (loss)	$	13.8		$	(48.2	)	$	(4.5	)	$	(61.9	)

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

As of September 30, 2013	US Operations Molybdenum		Canadian Operations Molybdenum		Copper-Gold		Inter-segment		Total
Capital expenditures (1)	$	3.2	$	2.0	$	382.1	$	0.2	$	387.5
Property, plant, equipment and development, net	$	262.1	$	173.9	$	2,385.2	$	3.2	$	2,824.4
Assets	$	501.1	$	240.9	$	2,465.6	$	233.5	$	3,441.1
Liabilities	$	81.5	$	23.0	$	910.2	$	1,066.6	$	2,081.3

As of December 31, 2012	US Operations Molybdenum		Canadian Operations Molybdenum		Copper-Gold		Inter-segment		Total
Capital expenditures (2)	$	20.1	$	84.0	$	480.3	$	0.5	$	584.9
Property, plant, equipment and development, net	$	285.5	$	189.5	$	2,058.7	$	5.2	$	2,538.9
Assets	$	473.9	$	257.1	$	2,147.2	$	532.0	$	3,410.2
Liabilities	$	83.3	$	19.5	$	868.5	$	1,037.0	$	2,008.3

(1)  Capital expenditures for the nine months ended September 30, 2013.

(2)  Capital expenditures for the nine months ended September 30, 2012.