Segment Information | Segment Information TCM has three reportable segments, based on products and geography: Copper-Gold, US Molybdenum and Canadian Molybdenum. The Copper-Gold segment represents the Mount Milligan Mine and includes the sale of copper-gold products, net of refining costs, and all expenditures, including all mining, milling, on-site general and administration, transportation and warehousing. The US Molybdenum segment includes all US molybdenum sales and tolling and calcining revenue, all Langeloth roasting and on-site general and administration expenditures and all expenditures from TC Mine, which was placed on care and maintenance in December 2014, including all mine site general and administration and stripping costs and costs for idle mining operations. The Canadian Molybdenum segment which consists of the 75% owned Endako Mine, which was placed on temporary suspension effective December 31, 2014 and care and maintenance effective July 1, 2015, includes 75% of all Canadian molybdenum sales as well as TCM's 75% share of expenditures from the Endako Mine, including all mine site general and administration costs, transportation costs, and costs for idle mining operations. The costs related to care and maintenance at TC Mine for the three and six months ended June 30, 2015, our 75% share of the temporary suspension costs at Endako Mine for the three and six months ended June 30, 2015, and our 75% share of the one-time severance costs of $6.7 million relating to the placement of Endako Mine on care and maintenance are reflected in costs for idle mining operations. The inter-segment represents the elimination of intercompany transactions between the Langeloth Facility and the corporate entity for the three and six months ended June 30, 2015 and the elimination of intercompany transactions between TC Mine, the Langeloth Facility and the corporate entity for the three and six months ended June 30, 2014. TCM's chief operating decision makers (President and CEO, CFO) 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. Gains and losses on foreign exchange are calculated on transactions denominated in a different currency than the segment's functional currency; the Copper-Gold segment's unrealized foreign exchange balance is primarily comprised of its intercompany notes. Segment information for the three and six months ended June 30, 2015 and 2014 was as follows: For the three months ended June 30, 2015 : Copper-Gold US Molybdenum Canadian Molybdenum Inter-segment Total Revenues Copper sales $ 49.3 $ — $ — $ — $ 49.3 Gold sales 56.3 — — — $ 56.3 Molybdenum sales — 20.5 0.4 — $ 20.9 Tolling, calcining and other — 7.8 — (0.2 ) $ 7.6 105.6 28.3 0.4 (0.2 ) 134.1 Cost and expenses Operating expenses 49.6 25.7 0.2 (0.2 ) 75.3 Depreciation, depletion and amortization 22.8 3.8 — 0.2 26.8 Cost of sales 72.4 29.5 0.2 — 102.1 Selling and marketing 1.8 0.5 — (0.1 ) 2.2 Accretion expense 0.1 0.1 0.4 — 0.6 Costs for idle mining operations — 1.8 10.3 — 12.1 74.3 31.9 10.9 (0.1 ) 117.0 Segment operating income (loss) 31.3 (3.6 ) (10.5 ) (0.1 ) 17.1 Other segment (income) expense (Gain) loss on foreign exchange (4.3 ) — 0.6 — (3.7 ) Segment income (loss) before income and mining taxes $ 35.6 $ (3.6 ) $ (11.1 ) $ (0.1 ) $ 20.8 For the three months ended June 30, 2014 : Copper-Gold US Molybdenum Canadian Molybdenum Inter-segment Total Revenues Copper sales $ 64.8 $ — $ — $ — $ 64.8 Gold sales 54.1 — — — 54.1 Molybdenum sales — 100.7 25.6 — 126.3 Tolling, calcining and other — 4.3 — (1.1 ) 3.2 118.9 105.0 25.6 (1.1 ) 248.4 Cost and expenses Operating expenses 69.7 60.0 19.6 (1.1 ) 148.2 Depreciation, depletion and amortization 23.4 5.2 4.2 — 32.8 Cost of sales 93.1 65.2 23.8 (1.1 ) 181.0 Selling and marketing 1.5 1.7 0.8 (0.4 ) 3.6 Accretion expense 0.1 0.3 0.5 — 0.9 94.7 67.2 25.1 (1.5 ) 185.5 Segment operating income (loss) 24.2 37.8 0.5 0.4 62.9 Other segment (income) expenses (Gain) loss on foreign exchange (5.8 ) — 0.9 — (4.9 ) Segment income (loss) before income and mining taxes $ 30.0 $ 37.8 $ (0.4 ) $ 0.4 $ 67.8 For the six months ended June 30, 2015 : Copper-Gold US Molybdenum Canadian Molybdenum Inter-segment Total Revenues Copper sales $ 81.5 $ — $ — $ — $ 81.5 Gold sales 92.3 — — — $ 92.3 Molybdenum sales — 58.3 5.4 — $ 63.7 Tolling, calcining and other — 19.9 — (0.3 ) $ 19.6 173.8 78.2 5.4 (0.3 ) 257.1 Cost and expenses Operating expenses 83.4 71.6 3.6 (0.3 ) 158.3 Depreciation, depletion and amortization 37.1 9.0 0.4 0.2 46.7 Cost of sales 120.5 80.6 4.0 (0.1 ) 205.0 Selling and marketing 3.8 1.2 0.2 — 5.2 Accretion expense 0.2 0.3 0.7 — 1.2 Costs for idle mining operations — 4.2 13.5 — 17.7 124.5 86.3 18.4 (0.1 ) 229.1 Segment operating income (loss) 49.3 (8.1 ) (13.0 ) (0.2 ) 28.0 Other segment (income) expense (Gain) loss on foreign exchange 13.0 — (1.5 ) — 11.5 Segment income (loss) before income and mining taxes $ 36.3 $ (8.1 ) $ (11.5 ) $ (0.2 ) $ 16.5 For the six months ended June 30, 2014 : Copper-Gold US Molybdenum Canadian Molybdenum Inter-segment Total Revenues Copper sales $ 94.6 $ — $ — $ — $ 94.6 Gold sales 78.5 — — — 78.5 Molybdenum sales — 176.3 57.6 (4.7 ) 229.2 Tolling, calcining and other — 9.8 — (2.7 ) 7.1 173.1 186.1 57.6 (7.4 ) 409.4 Cost and expenses Operating expenses 112.5 107.3 49.3 (7.3 ) 261.8 Depreciation, depletion and amortization 33.1 12.2 9.7 — 55.0 Cost of sales 145.6 119.5 59.0 (7.3 ) 316.8 Selling and marketing 3.5 3.3 1.7 (0.8 ) 7.7 Accretion expense 0.2 0.7 0.9 — 1.8 149.3 123.5 61.6 (8.1 ) 326.3 Segment operating income (loss) 23.8 62.6 (4.0 ) 0.7 83.1 Other segment (income) expenses (Gain) loss on foreign exchange 1.3 — 0.2 — 1.5 Segment income (loss) before income and mining taxes $ 22.5 $ 62.6 $ (4.2 ) $ 0.7 $ 81.6 For the three and six months ended June 30, 2015 and 2014 : Reconciliation of Segment Income to Net Income (Loss) Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Segment income (loss) $ 20.8 $ 67.8 $ 16.5 $ 81.6 Other (income) expense General and administrative 4.9 5.2 10.5 11.8 Exploration 0.1 0.2 0.1 0.3 Interest expense (income), net 22.3 23.2 44.8 46.7 (Gain) loss on foreign exchange (13.2 ) (37.4 ) 59.8 2.7 Corporate depreciation — 0.2 0.1 0.6 (Gain) loss from debt extinguishment 3.1 0.5 2.8 0.5 Other (1.8 ) (0.2 ) (3.1 ) (3.0 ) Income (loss) before income and mining taxes 5.4 76.1 (98.5 ) 22.0 Income and mining tax (benefit) expense 5.1 14.5 (11.6 ) (0.5 ) Net income (loss) $ 0.3 $ 61.6 $ (86.9 ) $ 22.5 Other segment information regarding capital expenditures, assets and liabilities, including the assets and liabilities attributed to corporate operations, was as follows: As of June 30, 2015 Copper-Gold US Molybdenum Canadian Molybdenum Inter-segment Total Capital expenditures (1) $ 21.8 $ 0.9 $ 0.2 — $ 22.9 Property, plant, equipment and development (3) $ 1,926.3 $ 111.1 $ 25.6 $ 0.6 $ 2,063.6 Assets $ 2,140.3 $ 347.5 $ 59.1 $ 54.4 $ 2,601.3 Liabilities $ 900.5 $ 25.5 $ 26.0 $ 924.9 $ 1,876.9 As of December 31, 2014 Copper-Gold US Molybdenum Canadian Molybdenum Inter-segment Total Capital expenditures (2) $ 77.0 $ 4.0 $ 1.1 $ — $ 82.1 Property, plant, equipment and development (3) $ 2,075.3 $ 114.4 $ 27.5 $ 1.1 $ 2,218.3 Assets $ 2,304.1 $ 444.3 $ 77.6 $ 20.3 $ 2,846.3 Liabilities $ 912.0 $ 33.8 $ 30.5 $ 982.5 $ 1,958.8 __________________________________________________________________________ (1) Capital expenditures were for the six months ended June 30, 2015. Copper-Gold capital expenditures are for the Mount Milligan Mine and include $2.3 million for engineering and long-lead item expenditures relating to the secondary crusher, $18.5 million for operating capital and $1.0 million for the permanent operations residence (related primarily to the payment of accruals from December 31, 2014). (2) Capital expenditures were for the year ended December 31, 2014. Copper-Gold capital expenditures are for the Mount Milligan Mine and include $29.8 million for the permanent operations residence, $30.9 million for operating capital and $16.3 million for project capital (related to the payment of accruals from December 31, 2013). Total cash capital expenditures during 2014 included $21.0 million in payments of amounts accrued at December 31, 2013. (3) Includes exploration properties. |