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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