Wednesday, February 19, 2014

Seeking Alpha: Thompson Creek Really Has To Execute Now

A year ago, I discussed Thompson Creek (TC) as a high-risk/high-reward mining stock opportunity that was increasingly dependent on bringing its Mt. Milligan copper-gold project into production on time and on budget. As stock calls go, this one delivered more of the "high-risk" than the "high-reward", though the 15% decline in the shares since that report isn't terrible compared to the performance of other small miners like Taseko (TGB) or General Moly (GMO) over the same period.

Since that last report, Thompson Creek has started production at Mt. Milligan and molybdenum market conditions have continued to be adverse to the company's interests. As is often the case for mining companies, Thompson Creek's future depends greatly on future metal prices (which they cannot control) and future mining costs (which they can control at least to a point). I believe current copper futures prices are good enough for this stock to work, so it is now about whether the ore grades and operating efficiencies come in as expected. With a cost-focused CEO at the helm, I'm optimistic on that score and I believe there's worthwhile upside at these levels.

Continue here:
Thompson Creek Really Has To Execute Now

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