Thompson Creek Metals Company Inc. (NYSE:TC)

CAPS Rating: 4 out of 5

Thompson Creek Metals mines, mills, processes, and markets molybdenum products in Canada and the United States.


Player Avatar gamblingkev (< 20) Submitted: 12/28/2011 2:15:53 PM : Outperform Start Price: $6.84 TC Score: -62.57

Thompson Creek is being punished for trying to change from being a one trick pony, namely molybdenum, to a major producer of molybdenum, copper, and gold. They bought Terrane and their huge copper & gold discovery in Mt Milligan and are now realizing how much it costs to bring it to production. Add to that the cost of expanding their big moly mine and they have cash flow problems. These issues have killed TC this year. But they bring an opportunity in the next couple of years. This is a well managed company who has chosen to diversify from the massive swings molybdenum prices have had over the past few years. Within 2 years they will be producing at Mt Milligan. If they can raise the cash needed to complete Mt Milligan - probably by selling another part of the gold stream - they will reap the benefits in the next few years and in a big way. I like their management, I believe they will do it.

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