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 TMFmd19 (91.69) Submitted: 1/14/2013 10:30:00 AM : Outperform Start Price: $4.15 TC Score: -105.71

Thompson Creek Metals (NYSE: TC) is best known as a producer of molybdenum. However, the company is in the final stages of bringing its Mount Milligan copper and gold mine into production. The mine is expected to produce an average of 194,000 ounces of gold and 81 million pounds of copper each year over its 22-year expected life.

The project has not gone as smoothly as the company had hoped. Construction costs have skyrocketed and the company has had to give up half of the mine’s future gold production to help fund the project completion. That being said, the mine has the potential to transform the company into a top performer. A further boost for the company in the next year would be a rebound in the price molybdenum, which suffered a double digit decline last year.

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